Higher-Yielding Investment Programs in Commercial Real Estate Fractional Unit Ownership Syndications


Prototypically, high-yield investment programs present one of the largest frauds that are ongoing today.  Every single year, billions of dollars of investor funds are lost due to high-yield investment program scams, offshore "investment programs", forfeiting and forex (foreign currency exchange) trading program schemes.  The scammers are quite sophisticated and may have been the basis for the movie The Game that depicts a complicated investment program fraud that becomes a game of life and death.

As with every great scam, the high-yield investment program is based on a factual premise - investor participation in development-stage companies and commercial real estate projects that create attractive yields through the enhancement of the company's  (or project's, as the case may be) operating income as assets are assembled, built and/or otherwise acquired and combined to create a higher operating income.  The resulting operating income is the basis of the gain the investor typically receives as a result of an equity syndication cash-out and/or refinance of the capital funding structure of the project (or company).

Rainmaker Marketing Corporation provides a reasonable alternative to these scams via its commercial real estate fractional (tenants-in-common) syndications.  Rainmaker creates syndications for the financing of commercial real estate developments nationwide and offshore.  Rainmaker's approach is to require each developer/sponsor seeking financing to provide a comprehensive checklist of due diligence documentation that must support the transaction.  Rainmaker then reviews the due diligence documents for the purposes of catching obvious errors and/or omissions that would have a material impact on the proposed project being financed through the syndication fractional ownership interest funding approach.  This approach to syndicating equity financing focuses on utilizing Rainmaker's extensive due diligence documentation experience and expertise in a way that creates a syndication platform that automatically ferrets out the most egregious offenders in terms of project developers and sponsors seeking to finance projects that are not ready to be syndicated and forcing the sponsor/developer to provide in-depth documentation as to the market issues, financial feasibility issues, business model management issues and projected financial returns.

The Rainmaker Marketing Corporation approach is to focus on syndicating financial opportunities at three (3) basic levels:

  • Pre-Construction Phase Syndications.  These are syndications of fractional real estate ownership interests in commercial real estate development programs that have not as yet obtained a bankable financing commitment for the construction financing.  Projects in this category are expected to provide a near-term window (less than three years) with a gross return of 150% to 300%.  These syndications present significant risks and significant rewards.

  • Construction Phase Syndications.  These are syndications of fractional real estate ownership interests in commercial real estate development programs that have obtained a bankable financing commitment for the construction financing.  Projects in this category are expected to provide a near-term window holding period with a gross return of 125% to 250%.

  • Post-Construction Operating Phase Syndications. These are syndications of fractional real estate ownership interests in commercial real estate development programs that are about to complete construction or have completed construction phase operations and the financing is primarily an equity cash out.  Project is in this category are expected to provide a gross return of 250% to 450% for a 7 to 10 year investment holding period.

All of the programs can be accessed through Rainmaker Marketing Corporation.  Contact a Rainmaker Marketing Corporation consultant today and find out what you can do to better your own program, be you investor or developer.



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Telephone:

281-537-1200

Postal address:

15519 Dawnbrook Drive, Houston, Texas 77068

Electronic mail:

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