Pro Forma Financial Statements...

Rainmaker Marketing Corporation routinely prepares pro forma financial statements (and financial feasibility studies) for commercial real estate development project sponsors seeking early-stage capital financing for their project.  The preparation of the pro forma financial statements includes a high degree of detail and are ideally suited for today's commercial real estate developer and/or project owner/operator who wants to exercise all due diligence and provide comprehensive disclosures for a private placement offering of debt and/or equity securities.  Rainmaker has completed literally hundreds of pro forma financial presentations for clients over the past 10 years alone.  Part and parcel to every presentation are all four (4) of the main FASB schedules with the income statement prepared on a cash basis (for ultimate sensitivity regarding the use of working capital) and the balance sheet reflecting the consolidation of accrual accounting items (A/R, A/P, etc.).  Rainmaker also provides the client with a capital funding plan executive summary that clients typically utilize for the purposes of undertaking the initial funding solicitation process in advance of the release of a private placement offering memorandum.  All of the component schedules (i.e.: individual project department schedules - General & Administrative, Maintenance, Marketing, Revenues, Occupancy, Non-Operating Expense, etc.) are presented in the full-text report and are also provided on a stand-alone basis for the purposes of quick reference.  Notes and assumptions pertaining to each line item on each of the schedules are provided.  In addition, a summary discussion of the findings of the analysis is also provided.

A prototypical Rainmaker Marketing Corporation commercial real estate development feasibility assignment will contain the following elements (click on links to see sample documents):

The outflow is dependent upon your goals.  Rainmaker Marketing Corporation designs the financial feasibility analysis around a multi-scenario approach to determine the most likely capital finance requirements of the resulting project.  Typically, this will involve a commercial real estate syndication so as to provide the developer with the necessary gap financing to induce the commercial construction mortgage lender to provide the construction loan on a non-recourse basis.  Furthermore, the expectation is for the developer to use the commercial real estate syndication as the "hammer" to allow the developer to negotiate away the usual cross-default and cross-collateralization pledges.  In addition, the commercial real estate syndication sales plan can be sized so as to allow the developer to withdraw the developer's pre-construction phase seed capital investment while the project is still in the pre-construction phase.  This approach fully satisfies the conditions precedent to the developer undertaking the classic "bootstrap rollout" wherein; the developer constantly re-leverages the developer's seed capital stack and continually halves the developer's market risk exposure with each new project start.  These benefits cannot otherwise be created for the benefit of the commercial real estate developer.

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