Multifamily Housing Syndicators

Rainmaker has now entered the multifamily housing syndicators industry for the purposes of helping its commercial real estate development due diligence clients judiciously utilize real property interest sales in place of a private placement offering process.  Rainmaker thinks its proprietary program benefits makes Rainmaker the first of its kind in terms of multifamily housing syndicators.

The advantages and disadvantages are discussed in more detail hereinbelow:

• The commercial real estate syndication process can be used to provide a portion of the pre-construction phase financing.  This is not usually the case with private placement offerings due to the disclosure burden that is inherent to securities offerings compared to the sale of a real property interest.  For multifamily housing syndications this means you can get your project moving faster and you can find yourself in the enviable position of constantly re-leveraging your risk capital.  That's the difference between us and the other multifamily housing syndicators.

• The commercial real estate syndication process is not eligible for HUD-insured loans while the private placement offering does not necessarily exclude the owner from applying under any applicable HUD title (221(d)(4), 202, 232, 242, etc.).

• The commercial real estate syndication process can be syndicated on a min-max basis as is the case with the private placement offering memorandum.

• The commercial real estate syndication process is less expensive than the private placement offering route due to the complex legal, organizational and tax matters that must accompany the private placement offering.

• The commercial real estate syndication process is not restricted in terms of general solicitations whereas the private placement offering market is, more or less, limited to Qualified Institutional Buyers.

Rainmaker is fast becoming an Internet portal where commercial real estate developers seeking financing meet with the people looking to invest/purchase commercial income-producing real property interests from these developers.  To make sure everything is optimized for the highest chances of future success, the due diligence documentation is typically provided by Rainmaker, but this is by no means a requirement.  Rainmaker is here to create its own disclosures regarding risks and potential pecuniary gains each party expects to accept and is prepared to endure.

No matter what part of the commercial real estate development finance industry sub-market you are in, Rainmaker Marketing Corporation is the firm to turn to for documenting all of the due diligence matters pertaining to a given funding assignment and offer you funding alternatives you may find more agreeable than the QIB market may allow for your project's benefit.