Non-Recourse Construction Loans, Lending, Investing, Fundings & Financings...
Prior to the advent of Internet-based programs, non-recourse construction loans were - by and large - the province of the federal government that provided tax-exempt bond financing and mortgage loan insurance for certain types of commercial income-producing properties and lines of business. Today, non-recourse construction loans can be obtained by increasing the amount of at-risk equity contributions to the transaction - the sufficiency of which provides enough financial incentive for a lender to provide non-recourse construction financing and you make this work by having Rainmaker perform an underwriting review of your proposal and help you with our participating network of brokers to place your financing or create a syndicate to provide the necessary capital for your development project.
Increasing the equity capitalization is just one of the solutions for obtaining non-recourse construction loans. In fact, there are a basket of transaction terms that can be modified to induce a lender to make the construction loan, including:
Ultimately, these items are used in combination to make the transaction attractive to the lender. In many cases, the reduction in the origination fees (created by the reduction in the origination amount of the loan) can be waived and the points increased the same dollar amount as if the higher loan-to-cost ratio had been used.
Talk with us. Rainmaker offers a complete array of capital financing consulting solutions designed for today's commercial income-producing property developer.