Senior Housing
Conduit Loans - Continued...
-
Entry-fee
Financing Based Capitalization. If you are looking at an entry-fee
project, we also provide an analysis of the capital funding structure based
upon the use of the entry-fee mechanism on a stand-alone basis and including
real estate syndications and/or equity security private placement offerings.
-
Private
Placement Offerings. The final look before we consider the potential
impact of the conduit loan program is the private placement offering of
equity securities. Private placements are complex tasks that are
loaded with opportunities to get yourself into trouble with the SEC.
Rainmaker Marketing Corporation provides the transaction analysis with the addition of the
potential private placement funding proceeds being added tot he mix.
-
Tax-Advantaged
Offerings. Does this project qualify for a tax credit, bonus
depreciation expense allocation or other premium? If it does,
Rainmaker provides the analysis on these important pieces to the capital
funding solution set.
Conduit
loans are a form of take-out financing. The conduit is nothing more than a
defined program where the intention is to package a raft of loans of the same
type, create a common pool of collateral and then sell-off the loans for a
profit once the cash flow is stabilized in the market.
What
does this mean for you?
It
means conduit loans are not likely to be part of your capital financing solution
set if you are seeking development financing for a new construction project...
It
means that you can get a great financing rate on your permanent financing when
you access a conduit program...
It
means you have another way of "cashing in" the equity created in the
project from the development and stabilization phases being successfully
completed in accordance with expectations (or exceeding them, we hope).
Find
out more by talking to a Rainmaker Marketing Corporation consultant today.
