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Syndications are the real opportunity in a recession that can beat the odds and senior housing is the industry to do it with...

Non-Recourse Construction Loans, EB-5 Joint-Ventures & Commercial Real Estate Syndication Financing...

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/or using the CIS-sanctioned EB-5 program to provide the construction financing on a non-recourse basis. If you are seeking to participate in the EB-5 100% non-recourse facility financing joint-venture program, please click here for more information.

Another way you can make this work by including a commercial real estate syndication in the capital stack.

Increasing the equity capitalization is just one of the solutions for obtaining non-recourse construction loans and the most readily accessible means for this purpose is to use the pre-construction phase zero-coupon structured fractional commercial real estate syndication sales plan to provide enough financing to induce the lender to provide the construction financing on a non-recourse basis. 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.

The focus should be on the zero-coupon commercial real estate syndication approach, because:

	The zero-coupon commercial real estate syndication can be marketed and closed-out in as little as 21 days from date of the syndication being posted for the public. That's pretty doggone fast. If you have the due diligence documents and advance marketing and advertising costs, you can get it knocked out in no time flat.
	The zero-coupon commercial real estate syndication provides the financing as early as the pre-construction phase and the financing does not come with the joint and several liability pledge requirement (just what the doctor ordered!).
	The zero-coupon commercial real estate syndication is a medium term holding period (usually seven (7) years), so it is "patient capital" that is invested during the pre-construction phase and allows the developer the cushion of completing the remaining pre-construction phase tasking, develop and construct the project, commence leasing and stabilize the property before the buy-back guarantee must be exercised.
	The zero-coupon commercial real estate syndication financing is designed to allow the developer to pick up the developer's seed capital investment up off the table while the project is still in its pre-construction phase and this means the developer now has the power to order and execute a "bootstrap rollout" wherein; the developer constantly re-leverages the developer's seed capital stock and halves the developer's market risk exposure.

Continued on the following page.

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

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.

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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