Market Feasibility Studies...

Rainmaker Marketing Corporation specializes in preparing pre-construction phase market feasibility studies, commercial/institutional finance feasibility studies and fractional real estate financial feasibility studies for all classes of commercial income-producing property development programs throughout North America and the Caribbean Basin.

The key issue is always the same; capital financing needs to be obtained from third-parties that will demand proof of concept be provided by an independent source that has no "dog in the hunt" and has a demonstrated capability in the rendering of arm's-length due diligence reports.  Rainmaker focuses on the critical pre-construction phase of the project's rollout, because: (i) the majority of project developments stall at this phase due to a lack of funding; and (ii) the transaction's capital funding structure (the "deal structure") has a fundamental flaw (usually insufficient capital contributions to induce a lender to provide construction mortgage financing); and (iii) the developer's own requirements for acceptable funding offers is unrealistic given current market conditions.

Commercial property development transactions frequently rely upon high levels of investment leverage that, heretofore, were dependent upon the assumption the promoter group would be able to obtain both financial investment leverage as well as the assumption the project will be able to obtain this financing on a non-recourse basis and with a waiver of the typical cross-default and cross-collateralization covenants that are ubiquitous to commercial bank financing and/or institutional debt placements.  These assumptions are wrong 9 out of 10 times, because; the developer believes "the project story" will be sufficient to induce a lender to close. 

While this is certainly possible it is not a practical approach and that usually results in the developer's project running aground due to the fact all of the working capital in the deal has been absorbed in the banking financing "money hunt".  A more sober and realistic approach would be to undertake the project feasibility due diligence documentation process in terms of all of the potential capital financing opportunities and should now include the use of the fractional commercial real estate syndication approach.

The zero-coupon fractional ownership commercial real estate syndication sales plan offers the developer benefits that cannot otherwise be duplicated and the entirety of the due diligence process must be structured to accommodate these issues.  Benefits to the developer include:

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About Rainmaker...

Rainmaker Marketing Corporation is the brainchild of Clint Lovell, a seasoned business finance consultant with more than 20 years experience.  Rainmaker is a B2B consulting firm that was incorporated in 1994 for the purposes of providing market feasibility studies to businesses seeking capital financing in the commercial and institutional markets.  Today, Rainmaker Marketing Corporation provides a comprehensive array of due diligence documentation services for most major industry groups.  Rainmaker Marketing Corporation also provides syndication management services for fractional commercial real estate syndicates that can provide mezzanine gap funding for income-producing commercial property developments as early as the pre-construction phase.  Rainmaker Marketing Corporation serves clients throughout North America and the Caribbean Basin.

Rainmaker Marketing Corporation, Inc.

15519 Dawnbrook Drive, Houston, Texas 77068

281.537.1200  

consultants@rainmakermarketing.com