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Multifamily
Housing Syndicators & Fractional Commercial Real Estate Development
Financing...
Rainmaker has now entered
the multifamily housing
syndicators industry for the purposes of helping its commercial real
estate development due diligence clients judiciously utilize real
property interest sales in place of a private placement offering
process. Rainmaker Marketing Corporation thinks its proprietary program benefits makes
Rainmaker Marketing Corporation the first of its kind in terms of multifamily housing
syndicators (click
here for PowerPoint presentation on this topic).
The advantages and
disadvantages are discussed in more detail hereinbelow:
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The commercial real
estate syndication process can be used to provide a portion of the
pre-construction phase financing. This is not usually the case
with private placement offerings due to the disclosure burden that
is inherent to securities offerings compared to the sale of a real
property interest. For multifamily housing syndications this
means you can get your project moving faster and you can find
yourself in the enviable position of constantly re-leveraging your
risk capital. That's the difference between us and the other
multifamily housing syndicators. |
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The commercial real
estate syndication process is not eligible for HUD-insured loans
while the private placement offering does not necessarily exclude
the owner from applying under any applicable HUD title (221(d)(4),
202, 232, 242, etc.). |
| The commercial real
estate syndication process can be syndicated on a min-max basis as
is the case with the private placement offering memorandum, but the
practical effect is that sufficient sales must exist to power the
project forward. This means you can close it fast and you can
access the funding while the project is still in the middle of
the pre-construction phase design and engineering processes. |
| The commercial real
estate syndication process is less expensive than the private
placement offering route due to the complex legal, organizational
and tax matters that must accompany the private placement offering
process. The commercial real estate syndication approach
focuses on just those due diligence activities necessary to
sustain the developer's representations. This means we
don't need completed Architectural Construction Documents; we
need completed Schematic Phase Designs and the Schematic Phase
Outline Construction Specifications. This is just one
example, but one of the more egregious "working capital
sins" Rainmaker Marketing Corporation routinely sees when
the client commissions Rainmaker Marketing Corporation to
undertake the initial syndication feasibility review and
analysis. |
| The commercial real
estate syndication process is not restricted in terms of general
solicitations whereas the private placement offering market is, more
or less, limited to Qualified Institutional Buyers. This
important difference gives the commercial income-producing
property developer a huge hammer to wield for the purposes of
quickly and efficiently attracting capital investment and
Rainmaker Marketing Corporation's approach is to use the
"advertising overkill method" to create the highest
possible likelihood of a complete sell-out of the issue. |
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
© Copyright,
2009 Rainmaker Marketing Corporation, Inc. All rights
reserved. |
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A
Few Words on Change...
Clint
Lovell, the Managing Principal of Rainmaker, has written a book on the
subject of capitalism and the creation of a new economic society that
ends our reliance on taxation and retires all of our national
debt. The book is called The Fix and you can order an
advance copy now at www.the
fixbookstore.com. Order today and we'll pay your shipping,
saving you some real change. |
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What's
New...
Read
our latest whitepaper on capitalization strategies and commercial real
estate syndications that provide developers with a new arsenal of
capital finance weapons they can deploy in the middle of this
recession. Click here and download the whitepaper
free! |
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