RAINMAKER MARKETING CORPORATION 281.537.1200

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Real Estate Syndications - Capital Financing Programs...

Rainmaker Marketing Corporationprovides national and international support for commercial real estate syndications via real estate syndicates, syndications, investors, commercial, construction, financing, funding the Tenants-In-Common ("TIC") fractional ownership syndication approach providing the gap funding requirements (difference between total project cost and the construction loan origination amount) for commercial real estate development financings and commercial real estate acquisitions.  In today's competitive capital markets, commercial real estate syndications provide the individual investor with access to the same types of assets and/or commercial real estate development programs that Qualified Institutional Buyers routinely receive.  That's right - the object is to level the playing field for individual buyers and institutional buyers alike through the listing process so that your $25,000 investment accesses the same commercial interests that Qualified Institutional Buyers (called "QIBs" - pronounced "quibs") routinely receive.

The rules of the road are as follows:

Holding Periods & Hurdle Rates.  TIC Plan-based syndications can be used for pre-construction phase project financing, construction phase project financing and post-construction phase project financing (permanent financing and/or take-out financing).  The holding period is adjusted for risk on the basis of the following multiples being provided over the S&P 500 trailing 5 year earnings (i.e.: a hurdle rate range of 10% to 14%):

Pre-Construction Phase.  Multiple of 1.75 to 2.75 times the SPDR hurdle rate with a 3-year holding period.

Construction Phase.  Multiple of 1.50 to 2.50 times the SPDR hurdle rate with a 3-year holding period.

Post-Construction.  Multiple of 2.50 and up times the SPDR hurdle rate with a 7-year holding period.

These hurdle rates are subject to the supply and demand for the commercial real estate syndication market.  Investors and developers will decide what the returns potential has to be in order for a project to acquire all the necessary development financing (or acquisition financing) to allow a given project (or market basket of projects) to move into actual construction.

Minimum Contract.  The minimum contract is $25,000 and can be rolled into an Individual Retirement Account (IRA) using an option feature to defer taxes and lock-in gains.  This means your expected minimum investment is $25,000.

Talk to a Rainmaker.

What Goes Into An Underwriting?

The Rainmaker approach is truly a comprehensive assessment with 66 exhibits collected on every project that cover every aspect of the development, construction, operations and regulatory matters.  Collateral, credit and capacity underwriting reviews are conducted using CREFC underwriting standards in addition to a complete default risk analysis on term, maturity and technical default risk profiles.  Our typical underwriting report on a new construction project will easily exceed 500 pages and catalogue all transaction documents, plans and specifications.

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.

©Copyright 2011, Rainmaker Marketing Corporation, Inc.  All rights reserved.