Home  |  About Us  |  Search  | FAQ  | Contact Us
Syndication Consulting
Obtaining Capital
Instant Site Analysis
Competition Surveys
Due Diligence Services
Pro Forma Statements
Syndication Programs
Capital Funding Plans
Senior Housing
Get a Negotiator
Tax Credit Financing
SEO Internet Marketing
EB-5 Private Placements
Past Assignments
Table of Contents
 

Syndications are the real opportunity in a recession that can beat the odds and senior housing is the industry to do it with...

 

 

Commercial Real Estate Syndicates...

Rainmaker provides national and international support for commercial real estate syndications via 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 $250,000 purchase accesses the same commercial quality 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.  Prospective purchasers 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 real estate syndicate contract is $250,000 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 purchase is $250,000.

If you are seeking development financing for your project, consider the benefits of the zero-coupon fractional ownership interest commercial income-producing property syndication approach can provide:

The financing is non-recourse and the sufficiency of the financing allows the developer to knock down the construction mortgage financing loan's LTV Ratio to a point where a commercial bank can be induced to provide the required construction loan on a non-recourse basis and with a waiver of the cross-default and cross-collateralization pledges.

The zero-coupon financing can close while the project is still in its pre-construction phase and the marketing window can be as short as 21 days.  

The zero-coupon financing approach provides long-term (typically a holding period of seven (7) years) financing so the developer can get the project built, open and stabilized before the developer has to worry about retiring the syndicate's position in the deal.

The zero-coupon financing approach does not require the developer to accept a dilution of the developer's equity interest in the resulting business.

 This discussion continues on the next page.

Talk to one of our consultants to get more information.

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

© Copyright, 2009 Rainmaker Marketing Corporation, Inc.  All rights reserved.

 

A Few Words on Change...

Clint Lovell, the Managing Principal of Rainmaker, has written a book on the subject of capitalism and the creation of a new economic society that ends our reliance on taxation and retires all of our national debt.  The book is called The Fix and you can order an advance copy now at www.the fixbookstore.com.  Order today and we'll pay your shipping, saving you some real change. 

What's New...

Read our latest whitepaper on capitalization strategies and commercial real estate syndications that provide developers with a new arsenal of capital finance weapons they can deploy in the middle of this recession.  Click here and download the whitepaper free! 

 

Home  |  About Us  |  Search  | FAQ  | Contact Us