Mezzanine & Bridge Loans, EB-5 Joint-Ventures & Syndication Financing...

Most mezzanine loans and/or bridge loans - in the context of the commercial real estate development financing envelope - are considered to be near-term debt financings that create more problems than the mezzanine loans (or bridge loans, as the case may be) cure for the developer and/or owner/operator of a given commercial real estate development project.  There are many predatory mezzanine lenders in the field who specialize in spending your at-risk capital contributions on loan application fees and commitment fees for loans that will never close.  This has become so prevalent that Rainmaker Marketing Corporation has created this section on the web server to help you manage the process and weed out at least some of the more egregious examples of predatory lending for hard money loans, bridge loans and mezzanine loans.

First (and foremost) ask yourself why you are seeking this type of financing.  If the intended use of the mezzanine/bridge loan is to replace equity that you DO NOT have, then you are using the wrong capital funding element (consider using a non-recourse EB-5 joint-venture financing instead).  Most mezzanine loans are based upon the borrower being lent their own money - in other words - a lending decision is only made if the borrower can demonstrate that they already have the equity investment.  If you are seeking to ACQUIRE additional equity financing, then this route will NOT serve your interests.  The lender will take your application fee (usually $15,000 to $25,000) and then turn you down.  

Alternatives to Mezz, Bridge & Hard Money Financing

If you are seeking financing for a commercial income-producing property development program to provide gap financing for your project, then you should give consideration to using a fractional commercial real estate syndication sales plan.  Rainmaker Marketing Corporation can help you complete the necessary due diligence documentation (market, finance, construction, design, engineering and operations related due diligence documentation), create a fractional sales plan, create the advertising and marketing materials, and then manage and close-out the syndicate sales contracts.  There are some tremendous advantages this method of new construction financing provides that 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