	RAINMAKER MARKETING CORPORATION 281.537.1200

Institutional Investor Negotiations & Consulting

Quite often a commercial bank will reject a loan application that comes through the front door, but invest in a private placement of senior notes for the very same project when presented by an investment banker or mortgage banker. Sound shocking? Well, there you have it. Different rules apply to different situations. If your deal is structured to provide all of the possible protections and benefits needed to support it in the market, then you the basis for pursuing capital financing through an investment banker.

Investment bankers only chase deals they can place without a lot of work because a true investment banker understands the principle of the time value of money and they won't waste time on money hunts that are not gut cinch winners.

What does this mean to you?

Today's savvy entrepreneur has to create a transaction structure that eliminates all the reasons why an investor would reject a given deal. The sales pitch is definitely the proverbial "elevator pitch". It has to make sense in a very short period of time. It has to have a decent yield, but not over the top because those deals have just as many problems because they are determined to be, "too good to be true". It has to be easy for the investor to say "yes" and it has to be easy for investors to make adjustments.

More specifically, if you think you are going to the investment banker route, then you need to deal with the following specific issues:

	Institutional investors will not accept market risk. The developer has to take the market risk or eliminate it. We recommend you have Rainmaker create a plan to eliminate it from your deal.
	Institutional investors will not accept construction risk. No investor (or investment banker) will ever believe that a real estate developer will be capable of managing construction risk for their benefit. Won't happen and your deal better have the fix for this (there is a fix).
	Institutional investors will not accept extended operating risk. Structure your transaction to eliminate their exposure to the risk or make their financial gain not be contingent upon future operations. Your choice. Come to us and we'll show you how to structure out the risk and eliminate the equity dilution hit you seem to be in such a hurry to accept.
	Institutional investors are yield-conscious. The old joke of "gentlemen prefer bonds," is very apropos. Design your deal to mimic (as near as possible) the benefits of a higher-yielding preferred dividend transaction and the more likely you will be successful convincing the investment banker to go sell your deal.

And that my friend, is why you need to have Rainmaker Marketing Corporation in your corner - start to finish. We answer the hard questions and will do the tough assignments.

Find out more today. Contact Rainmaker Marketing Corporation.

What Goes Into An Underwriting?

The Rainmaker approach is truly a comprehensive assessment with 66 exhibits collected on every project that cover every aspect of the development, construction, operations and regulatory matters. Collateral, credit and capacity underwriting reviews are conducted using CREFC underwriting standards in addition to a complete default risk analysis on term, maturity and technical default risk profiles. Our typical underwriting report on a new construction project will easily exceed 500 pages and catalogue all transaction documents, plans and specifications.

Rainmaker Marketing Corporation can trace its history back all the way to 1989. Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm. Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties. Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services. Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.