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Commercial real estate Investing for the rest of us.  Join us and make your play!

 

Senior Living Project Financing - Syndication & Due Diligence Services


Senior housing developers seeking senior living project financing for a to-be-built senior housing project now have the option of funding capital costs using the commercial real estate sales syndication method.  Most developers have no idea of what the potential impact the syndication approach may ultimately provide to the senior living project financing paradigm.

Unlike mezzanine loans and bridge loans that, for the most part, are only available once the construction is slated to begin, in many cases the commercial real estate sales syndication approach can be introduced as early as the pre-construction phase.  This creates the opportunity for the sponsor (developer and/or owner/operator as the case may be) to dramatically increase financial investment leverage and reduce the sponsor's subjective investment risk.  Mezzanine loans and bridge loans increase financial investment leverage for the nascent developer, but will substantially increase the sponsor's investment risk exposure to an almost intolerable level resulting in the lender requiring full recourse (joint and several, personal and corporate) for the entire term of the loan.  In effect, the mezzanine lender and bridge lender are lending you your own money and charging you for the privilege.  This makes you a sucker.

On the other hand, the commercial real estate syndication approach provides some interesting benefits you should take notice of, to wit:

  • The transaction is about the income generated and allocated.  How you syndicate has nothing really to do with how you allocate income.  The TIC Plan approach gives you incredible flexibility in financing your construction program that you just can't find anywhere else.

  • The transaction has a floor and significant protections for the sponsor/developer.  If the TIC Plan sales program doesn't hit the minimum threshold requirement, the sponsor walks away owing Rainmaker nothing.

  • The reduction of subjective investment risks can be accomplished using entitlements - a structure more attuned to the syndication approach than the lending approach.

  • The Rainmaker commercial real estate syndicate approach doesn't require an "application fee" or "commitment fee" or "wrap fee" or any other fee for listing.  The client must pay all the legal, organizational and due diligence report costs prior to the listing going live, but the client will have these costs whether they syndicate or seek to complete a private placement offering of securities.  The client has to provide the relevant disclosures and there appears to be no exception to this rule in any case as these are the demands of the capital markets.

So, this leads us to the discussion of timing.  When do you need the financing?  Has the project gelled to a point where it can be syndicated in the market or are too many elements still missing?  Do you know?

Turn to Rainmaker Marketing Corporation.  Whether you are a commercial real estate income-producing property investor or developer, Rainmaker Marketing Corporation has the answers you are looking for to chase your own dream.  The first consultation is always free so pick up the phone and call us.

 


Contact Information

Our business hours are from 9:00 a.m. to 5:00 p.m. Monday thru Friday (CST)

Telephone:

281-537-1200

Postal address:

15519 Dawnbrook Drive, Houston, Texas 77068

Electronic mail:

General Information & Consulting Queries: clint@rainmakermarketing.com 

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