Rainmaker Marketing Corporation

Memory Care Facility Project Feasibility Studies - Continued...

Continued from previous page...

Capital Refund. Syndication financing can be structured so that the developer can receive a refund of the developer's seed capital investment while the project before construction activities even commence.

Timing. Once all required due diligence activities have been completed, the syndication can be closed out in as little as 21 days and the financing can be converted by the developer and expensed as early as the pre-construction phase of the project's development schedule.

Rainmaker Marketing Corporation offers syndication consulting and the supporting due diligence consulting for market and financial feasibility studies, capital funding plans and economic impact studies.

Rainmaker Marketing Corporation's approach to the financial feasibility issues has to include structured finance services because, in the majority of cases, the developer has sufficient capital to complete the due diligence documentation burden and support any syndication and/or real estate pre-construction marketing program, but not have sufficient funds to induce a lender to close escrow on a construction mortgage financing loan. Developer's consistently misjudge this critical component and push projects forward that cannot meet the necessary tests. Therefore; the next level is to understand the key test issues being related in terms of the structured finance approach that Rainmaker commends to every developer client.

First, all concept phase projects are divided into two (2) groups: those projects that have sufficient capital to complete the due diligence documentation and syndication marketing requirements and those that do not have sufficient capital to complete the due diligence documentation and syndication marketing regimen. Those that don't are eliminated from consideration.

Now the project is ready to head into the structured finance body shop and pick up some speed.

The structured finance approach we are commending to memory care project developers (and/or owner/operators, as the case may be) uses the combination of elements in the capital funding structure to drive the following aforementioned benefits (on previous page. To create these benefits the financial structure Rainmaker Marketing Corporation recommends to developers and owner/operators is as follows:

Entitlement Review. Does the project qualify for any statutory benefits in the form of tax-advantaged investment incentives? If so, these should be converted into an annuity and discounted to the value that corresponds to the pre-construction phase of the project. This leaves the door open for converting it into cash or using it as credit enhancement, increase interest income or top-coat a loan by substituting risk pool players.

Condominium Plan. Can a condominium association plan be created for a portion of the project space? If the answer is yes, then the object is to create a condo plan for investment income purposes only and not necessarily a finite residence per se. State consumer protection laws prevent the proceeds of these sales contracts from being used until what is effectively the bitter end of the construction period (last 45 to 60 days). But having said that, the proceeds would in fact be materially significant if they can provide what amounts to additional at-risk capital financing for the last two (2) months of construction; therefore, institutional buyer condominium plans must be given due consideration.

It's time you had a rainmaker of your very own and you can acquire your rainmaker from the company that markets rainmakers: Rainmaker Marketing Corporation.

Rainmaker Marketing Corporation 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