Senior Living Project Financing - Non-Recourse Fractional Real Estate Syndications...

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 EB-5 non-recourse joint venture financing program and/or 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.  Few (if any) are aware of the opportunities provided by the EB-5 program.

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:

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?  Talk to a Rainmaker and find out.

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

281.537.1200  

consultants@rainmakermarketing.com