	RAINMAKER MARKETING CORPORATION 281.537.1200

Non-Recourse Hotel Construction Loans...

Non-recourse hotel construction loans are possible no matter what the condition and/or status of the capital markets. Most non-recourse hotel construction loans, lending, financing, funding hotel (and motel and condotel) developers are used to using Tax Increment Financing Plans (TIF Plans) as well as Community Development District Plans (CDD Plans) as a means of obtaining capital financing on a non-recourse basis. The only problem with these approaches to resolving the hotel/motel capital finance equation for the construction phase - but what about the post-construction environment and the pre-construction environment? What about the potential for litigation that every TIF plan seems to create in its wake? Do you have access to a distribution channel that is sufficient to sell your securities issue or is it just one more risk in a daisy-chain of risks you can't manage?

The net result is that there has to be a better way of providing for the capital funding needs of hotel and motel projects - and more specifically, accessing non-recourse capital financing in the pre-construction phase so as to stop-limit the hotel developer's seed capital investment.

Rainmaker's approach to this issue was to concentrate on a solution that would provide the following benefits:

	Elimination of the litigation risk associated with the TIF plan approach by creating a different set of condition precedents for capital financing.
	Elimination of the carrying costs associated with the TIF plan and CDD plan approach because these solutions will not provide at-risk equity capital or mezzanine financing at the pre-construction phase (where it is needed the most).
	Reduction of the developer's risk exposure to a significant investment loss during the pre-construction phase due to a lack of equity capitalization.

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Do You Know The Secret?

When it comes to commercial real estate development finance, it doesn't matter whether you need to raise $5 million or $50 million, the out-of-pocket costs, advance fees and project due diligence costs will always require the same relative investment dollars the promoters have to fund. Do you know what that amount is? Do you know the Secret?

Rainmaker Marketing Corporation can trace its history back all the way to 1989. Incorporated in 1993, Rainmaker Marketing Corporation has 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 Marketing Corporation 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 real estate syndication services. Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.