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| | Hotel Project
Financing...
Rainmaker
Marketing Corporation's
hotel project financing program focuses on fractional real estate
tenant-in-common  ownership interests for syndications of
$7,500,000 or
more with each fractional unit contract being set based upon securities
law requirements.
Rainmaker provides due diligence services including project market
feasibility studies, pro forma financial
presentations, capital funding
plan proposals, private placement offering related documentary
disclosures and support. Our goal is to provide enough at-risk
equity contributions (from the fractional syndication) to allow the
developer of the property to access a non-recourse hotel project
financing program in the commercial bank markets or on the basis of a
private placement offering.
Obviously, if a client intends to have
us undertake a syndication, then we cannot provide the
market feasibility analysis report because of a conflict-of-interest,
but Rainmaker can pick up the ball once the market study is complete and
run with it to the completion of the funding cycle. Rainmaker can provide the continuity through
to completion of the initial syndication marketing period (always 90
days) for most property types and assuming the developer demonstrates
experience or obtains the necessary assistance to manage the
project. The keys to a successful hotel financing are:
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Development team. Everyone should have a demonstrable track
record for the management of all aspects of the property's
development, construction, marketing and operating plans and
financial matters. |
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Due diligence documents. Formal
market feasibility
study,
financial feasibility study, business
plans, lease memoranda,
pre-sales agreements, proposed statutory investment entitlements and capital financing documents substantiating
the project. (Note the buttons on the navigation bar and don't
be afraid to use them!). |
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Project funding
plan. The final consolidated financing plan
based upon a pro forma financial presentation assuming the capital
finance costs associated with the syndication that assumes a
construction loan that is retired at end of construction by ongoing
sales of fractional real estate interests. Every
successful syndication will be for at least 100 $25,000 and then
will remain open as long as there is market interest, or; the
syndication sells out 100% of the remaining fractional units,
whichever occurs first. |
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Differentiated Product. There are enough solid
franchise systems available to support a brand that is not otherwise
already represented in the local marketing area of the subject
property. |
It's
time you talked to Rainmaker about all your alternatives.
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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