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Apartments Financing, Funding & Lending...
Whether the need is for senior
apartments financing, entry-fee independent living facility
financing or other forms of senior  housing, Rainmaker Marketing
Corporation provides a senior housing developers with a comprehensive
funding solution for a variety of housing development financing
programs (including senior apartments financing).
Pre-construction phase financing and construction phase financing
for senior apartments (typically referred to in the senior housing
industry as "independent living facilities" or "ILFs")
often entails the creation of a capital funding proposal that
incorporates statutory entitlements (investment incentives) in a
two-stage funding approach to the project for the benefit of the
developer's account.
ILFs
also include entry-fee projects and entry-fee projects create an additional
level of opportunity today's senior housing developer cannot afford to
ignore.
Consider
a working example...
The
developer is developing a 308-unit entry-fee CCRC. The first phase is 120
ILF units plus the 50,000 square foot community building - a total development
price tag, cet. par., of around $44,000,000 (or around $367,000 per
unit). The developer has to come up with a total of $44,000,000 in
financing to get the deal moving forward into the construction phase.
Here's how the savvy developer does it:
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The
entry-fees are set to average around $200,000 per unit. That provides
around $24,000,000, leaving us with $20,000,000 to finance. |
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Through
RMC, the developer executes a commercial real estate syndication and
sells a portion of the inventory to investors and that puts another
$12,000,000 into the deal, leaving us with $8,000,000 to finance. |
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The
developer goes to the local commercial bank office and gets a non-recourse
construction loan because the Loan-To-Cost Ratio is less than 20% (18.18%)
and the bank has incredible coverage - everyone is back-slapping happy.
The developer smiles and puts an additional $5 million in the bank. |
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The
developer now only has to fund up the initial working capital and pay the
pre-marketing and due diligence costs - less than $500,000 is used to
leverage a $44,000,000 deal. |
That's the Rainmaker
Marketing Corporation difference.
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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? |
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