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Private
Activity Bonds ("PABs") represent construction
phase financing and permanent financing for real estate development
projects. Rainmaker Marketing Corporation provides project
sponsors (developers and/or owner/operators - typically referred to as
the "developer/sponsor") with the due diligence reports
necessary to substantiate a PAB application including:
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Market
Feasibility Studies. Every development project is required
to provide demonstrable evidence of market acceptance for the
proposed project.
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Pro
Forma Financial Presentation. The findings of the market
feasibility study is used as the basis for projecting the operating
and non-operating cash flows of the proposed project.
Typically, the pro forma financial presentation covers a 5-year
forecast window and provides comprehensive detail for each line item
and month of the forecast period.
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Capital
Funding Plan Proposal. The pro forma financial
presentation is summarized in the form of a capital funding plan
proposal that is used by the investment bankers to solicit
institutional investor participation (i.e.: investment bankers
solicit the bond sales). This document contains the order of
funding and the order of retirement for each of the sources of funds
used to capitalize the project. This is the heart of the beast
and the capital funding plan will frequently incorporate multiple
items that are based upon the potential incentives the proposed
project may be able to capture and is frequently overlooked - much
to the eventual dismay of the developer/sponsor.
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