|
| | Project
Financing Plans - Insert The Key & Drive...
Project financing plans are a core competency with
Rainmaker Marketing Corporation. We can develop project financing plans in
 as little as
a week (in some cases). Entitlement reviews at the local, county,
state and/or federal levels can take a bit longer, but are usually also
ordered by the client based on a quick reference look-up (a one-day
review of relevant state and federal titles). The resulting
project financing plan (or "capital funding proposal" as it is
sometimes called) can be
literally earth-shattering. The incorporation of multiple layers of entitlement program
incentives
together with convertible mezzanine loans, "top-coated"
construction loans and limited developer capital provide for
extraordinary levels of financial investment leverage.
The resulting capital funding proposal isn't limited to just
"equity" and "debt". Consideration has to be
given to a wide array of financial incentives that can be applied to a
given commercial real estate development financing. The bottom
line - the more thought you put into it the better off you are going to
be in terms of how much money everyone will look to you to toss into the
pot. It is important to remember that the primary job of every
entrepreneur is the underwriting of the resulting investment.
Plain and simple, "you need 100% of the budget funds up to get
started, so whatever percentage isn't being provided by other means,
means you will be putting them up."
This brings us to the discussion of the key areas of the capital
funding proposal that you might want to give consideration to:
 |
Mezzanine Loans. Straight or convertible, higher earning
ratio assets allow for the strategic and judicious use of mezzanine
debt. Prime targets include healthcare, transportation, senior
housing and condo hotels that can take advantage of this type of
funding in a way that actually enhances the transaction. |
|
Entitlements. Planning grants, zero interest loans,
rebated taxes, PILOT plans and TIF
plans all need to be considered as these future streams of
dollars can be discounted to a present value and dumped into the
funding pot as cold hard cash that (in certain instances) serves as
equity replacement for the developer's account. |
This
discussion is continued on the
following page. | |
|
|
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? |
|
