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Syndications are the real opportunity in a recession that can beat the odds and senior housing is the industry to do it with...

 

  

New Markets Tax Credits...

Welcome to the New Markets Tax Credits information center supported by Rainmaker Marketing Corporation.  Rainmaker Marketing Corporation provides consulting for commercial real estate finance and development joint-ventures - including New Markets Tax Credits (NMTC) fundings.  Rainmaker Marketing Corporation provides consulting for commercial real estate developers seeking alternative forms of equity and debt financing that can be realized using the NMTC program tax credits.  Unlike the Section 42 Low-Income Housing Tax Credit program, the NMTC program is not available for the support of housing development.  The New Markets Tax Credit program is for other types of commercial real estate development programs and is based on a qualified use for a qualified location.  Examples of qualifying uses include:

Hotels and motels.  This is one of the most frequent use of the New Markets Tax Credit program, as hotels and motels (especially full-service facilities) can be financed using a combination of New Markets Tax Credits, commercial real estate syndication sales proceeds and then construction mortgage financing that has a LTV ratio of less than 50%.  This makes the difference and allows the developer to negotiate for non-recourse financing (the construction loan) and get it.

Retail shopping centers, power centers and strips.  New shopping center construction is another big user of the New Markets Tax Credits program and non-recourse financing is possible with or without the NMTC program credits.  Talk to your Rainmaker Marketing Corporation about the alternatives when time is of the essence and the costs for documenting and closing on the NMTC looks to be too rich for your blood.

Commercial office buildings (including medical office buildings).

Mixed-use complexes.  These property development programs are another prime user of the NMTC program, but the issue in the past has been the demand of NMTC Allocatees to have pari passu treatment of their investment to that of the construction mortgage loan and this just doesn't work.  Talk to a Rainmaker Marketing Corporation about non-recourse financing alternatives that sidestep this entire issue.

There are definitive issues involved in the application of this tax-advantaged product.  Turn to Rainmaker Marketing Corporation to help resolve these issues.  Rainmaker Marketing Corporation will provide you with consulting assistance to:

Complete the necessary feasibility study obligations to determine whether or not the NMTC program is cost-efficient enough to use for the purposes of the capital financing structure.

Draft a qualified allocation plan; and

Develop interest in the project amongst Allocatees; and

Create a structured capital funding plan to incorporate the credits; and

Lead negotiations with Allocatees, lenders and investors for the resulting credits; and

Assist with closing out the transaction through the provision of our renowned transactional due diligence services.

What can NMTC do for your project?  How about equity gap financing - would that help?  What about increasing the developer/sponsor entity's financial investment leverage by buying down the loan interest rate with debt forgiveness at term?  NMTC can be contrived to provide approximately 9% to 13% of the total project budget - that's real money - and NMTC-based transactions typically do not require a massive equity dilution.

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

© Copyright, 2009 Rainmaker Marketing Corporation, Inc.  All rights reserved.

  

A Few Words on Change...

Clint Lovell, the Managing Principal of Rainmaker, has written a book on the subject of capitalism and the creation of a new economic society that ends our reliance on taxation and retires all of our national debt.  The book is called The Fix and you can order an advance copy now at www.the fixbookstore.com.  Order today and we'll pay your shipping, saving you some real change. 

What's New...

Read our latest whitepaper on capitalization strategies and commercial real estate syndications that provide developers with a new arsenal of capital finance weapons they can deploy in the middle of this recession.  Click here and download the whitepaper free! 

 
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