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Real
Estate Syndications...
Commercial
real
estate syndications in the United States represent the next great
wave in commercial investment activities seeking ways to increase
the financial investment leverage in commercial real estate
syndications in general, and the incredible profitability potential of
commercial real estate development finance transactions in particular.
The "new wave"
potential is a direct result of the sub-prime mortgage meltdown that was
long overdue for single-family housing sub-markets that were powered by
the rudest possible claims regarding profits and risks. Commercial
real estate development financings present their own challenges to be
sure, but the sheer volume of transactions and demand for new
transactions may take the total volume over $10 billion this year.
This means that syndication support is no longer a dream, it's a
reality.
Rainmaker Marketing
Corporation is the firm to turn to in this industry because:
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We
have a
definitive track record in the preparation of the supporting due
diligence documentation required to substantiate a commercial
income-producing property development financing transaction; and
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We
are the firm
the developers turn to for the purposes of creating a structured
finance plan that can be encapsulated into a given transaction; and
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We
are the firm
to help you create the actual sales plan and (under strict
conditions) actually manage the resulting interests;
and
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Rainmaker
Marketing Corporation provides
direct syndication support via the Tenants-In-Common
("TIC") ownership plan to fulfill the purchase
requirements for all TIC Plans of $5 million or more.
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The question is whether
or not the transaction will qualify. Generally, the rules of the
road would be as follows:
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Yield. The
yield must be acceptable for the risk being taken and the holding
period requirement. The target return is a multiple of an
established equity index like S&P Depository Receipts (SPDRs).
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| Holding Period.
Pre-construction phase financing requires a holding period that is
coterminous with the completion of construction.
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Costs. Your
transaction's costs are yours to fund. If you do not have a
complete due diligence presentation that is appropriate to the
context, we cannot help you. You have to pay your own way.
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The
benefits of the commercial real estate syndication approach provides
the following benefits:
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The
commercial real estate syndication can provide financing on a
non-recourse to the developer.
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The
commercial real estate syndication financing does not require
the developer to accept a dilution of the developer's equity
interest.
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The
financing can be scaled to a level that reduces the commercial
construction mortgage financing loan to a point where the lender
may be induced to provide the loan on a non-recourse basis.
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The
financing can close in as little as 21 days. Once you have
the required due diligence exhibits in hand, the contracts are
all approved and the syndication is ready to begin, it can all
be cleaned-up and closed in as little as 21 days with a very
high degree of certainty of outcome.
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The
financing can be closed while the project is still in its
pre-construction phase as the due diligence requirements for
commencing construction are greater than those due diligence
requirements for closing out a syndication (in most cases).
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This
discussion is continued on the next page.
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
© Copyright,
2009 Rainmaker Marketing Corporation, Inc. All rights
reserved. |
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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. |
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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! |
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