RAINMAKER MARKETING CORPORATION 281.537.1200

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Senior Housing Bridge Loans, Lenders, Financings & Fundings...

Recent changes in the capital markets have left developers short as they search for senior housing bridge loans (including both senior housing, bridge loans, mezzanine, hard money, interim, mini-perm mezzanine loans and convertible loans) to cover the yawing equity gaps as a result of FHA/HUD requirements for HUD-insured senior housing construction loans.  The reliance upon bridge loans and mezzanine loans by senior housing developers has brought the new construction market segment to a grinding halt in all too many cases.

Rainmaker Marketing Corporation specializes in providing the due diligence documentation required to sustain a project's capital funding requirements, goals and expectations.  Rainmaker creates customized solutions for senior housing project development financings based upon a structured finance approach that includes:

entitlements financing programs - creating annuities out of statutory entitlements that do not require an award and/or allocation; and

investment real estate plans - creating fractional tenants-in-common syndications and condominium investment plan syndications.  This is the future of senior housing bridge loans and you should be ready to immediately embrace this additional tool for capitalizing your project.

The key to capital financing for the senior housing developer is to utilize the structured financing to dramatically increase the equity capitalization without necessarily diluting the resulting opportunity of the developer because:

the incremental equity gain created as a result of the development, construction and stabilization of a given senior housing project goes to the investor risk pool that provided the capital, so the developer is losing nothing in structuring a finite opportunity for these investors based solely upon this phase of the project's lifespan; and

the resulting development and operations program can be split into two (2) separate opportunities in a manner that is similar to the classic sale-leaseback financing arrangement where the developer owns the operating business and the investors own the real estate business.  This approach allows the developer to maintain the integrity of his/her overall equity opportunity because an earn-out provisions is part of the transaction that is vests ownership based upon actual distributable income payouts.  This means a waterfall distribution structure would give the developer an outstandingly fair opportunity to end up owning 90% of the resulting business and real estate.  The developer's opportunity includes:

income from the development management fee line item, which the developer may assign, in whole or in part, the developer's rights to a third-party development manager; and

 

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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?

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.