RAINMAKER MARKETING CORPORATION 281.537.1200

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Commercial Real Estate Syndications - Continued...

Rainmaker Marketing Corporation is the firm to turn to for commercial real estate syndications assistance.  The commercial real estate syndications program has been designed to provide tremendous flexibility for the benefit of the project developer (or sponsor in cases where these entities are different) to maximize the opportunity the developer/sponsor has to deliver the development project in a timely and cost-efficient manner.

Rainmaker Marketing Corporation provides syndication services and the due diligence services necessary to create a structured finance capital funding plan proposal that makes sense and provides the greatest degree of risk reduction possible for the benefit of the investor/buyer.

Under Rainmaker Marketing Corporation's system, the investor/buyer has the right to resell their interests at a time of their choosing.  Rainmaker's syndication program focuses on forcing the developer to provide a buy-back option so that the developer can flip the entire property at the time of the developer's choosing and at a sale price that is acceptable to everyone because the buy-back can option can go either way; someone is getting bought out.

Transactions are typically structured as one (1) of the following:

Near-term pre-construction phase project financing.  These transactions have an expected lifespan of three (3) years or less and are priced at a multiple of 1.50 to 2.50 times the contract original sale price that is determined based upon an assumed spread over the average yield of Standard & Poor's Depository Receipts (SPDRs - commonly pronounced as "spiders").

Near-term construction phase project financing.  These transactions have an expected lifespan of three (3) years or less and are priced at a multiple of 1.25 to 2.50 times the contract original sale price and this is the only pay-out the holder receives over the projected holding period unless the buyer elects to play the transaction long-term.

Long-term post-construction phase project financing.  These transactions represent take-out financing for projects that are already built (thereby eliminating the construction risk from impacting the buyer).  The expected lifespan of these contracts is 7 to 10 years and are priced at 1.25 to 2.00 times the original contract sale price and are dependent upon ongoing monthly profit distributions in addition to the buy-back option.

This approach allows the commercial real estate investor to pick what phase they wish to accept (pre-construction, construction or post-construction) in return for a reward that is commensurate with the risks being accepted.

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?

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.