RAINMAKER UNDERWRITING, LLC 281.537.1200

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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 non-recourse construction loans, investments, lending, financing 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.

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:

Increases in the interest rate the notes bear; and

Increases in the origination and placement fees/points on the note; and

Posting additional collateral (not a smart option, but it is one that works); and

Creating a condominium ownership plan for a portion of the property and immediately applying the sales proceeds against the outstanding indebtedness; and

Creating a tenants-in-common fractional real estate ownership interest syndication to provide near-term equity contributions that reduce the loan (per the heading of this page).

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.

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What Goes Into An Underwriting?

The Rainmaker approach is truly a comprehensive assessment with 66 exhibits collected on every project that cover every aspect of the development, construction, operations and regulatory matters.  Collateral, credit and capacity underwriting reviews are conducted using CREFC underwriting standards in addition to a complete default risk analysis on term, maturity and technical default risk profiles.  Our typical underwriting report on a new construction project will easily exceed 500 pages and catalogue all transaction documents, plans and specifications.

Rainmaker Underwriting, LLC can trace its history back all the way to 1989.  Incorporated in 1993, Rainmaker Marketing Corporation evolved over time into a full-service business to business consulting firm.  Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties.  Today, Rainmaker Underwriting, LLC serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial underwriting review services.  Rainmaker Underwriting, LLC’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: clinton.lovell@rainmakerunderwriting.com

Project Feasibility Studies, Commercial Real Estate Development Finance, Outsourced Underwriting Services, Due Diligence Documentation & Project Management Consulting

6706 Pebble Beach Drive, Houston, Texas 77069.

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