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Developers seeking new apartment
construction financing can now obtain a continuity of services through the
Rainmaker Marketing Corporation commercial real estate development financing due
diligence documentation services and (through our affiliate) equity syndications
as early in the development window as the pre-construction period.
Our core program focuses on the
following:
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Quickly completing the required
third-party due diligence exercises and documentation; then
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Qualifying the project for
construction financing via the FHA/HUD program or an equivalent program
offering non-recourse project financing; then
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Qualifying the syndication by
computing all development costs for the proposed project and then estimating
the equity gap based upon the project development budget that is approved by
the syndication sponsor (the developer seeking the financing); then
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Undertaking the syndication
while the developer/sponsor completes all of the due diligence and
application requirements of the construction lender; then
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Expediting the closing once the
syndicate's minimum real estate sales target is achieved. Post-close,
the syndicate will continue to offer fractional ownership interests until
the issue stalls (90 days with no further sales) or the syndicate is
completely sold-out.
This means:
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you can turn to Rainmaker for
production of the key due diligence documents - market feasibility studies,
financial feasibility studies, capital funding plans, public disclosure
documents, business plans and the like; and
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you can lock in your pre-closing
cost burden as early as the pre-construction period; and
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you can have the due diligence
review cover all of the exhibits required for syndication; and
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you can continue all of your
other capital formation activities, soliciting investment from whatever
quarter suits you, all the while the real estate syndication is running,
knowing you only have to accept the financing if the syndicate sales reach
the minimum sales target; and
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you can get a comprehensive
service that works for the good of all the parties even after the
syndication is successful.
The syndication program can be
custom programmed by the developer. You can decide the stage where the
syndicate capital financing will be provided. You can custom calibrate the
yield weighting between the syndicate investors (on the one hand) and the
developer (on the other hand).
The syndication platform is designed
to:
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provide a means of bringing
capital investment opportunities to the market in a very efficient manner;
and
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provide a means of timing
investment based upon operating guidelines that make sense for the
commercial real estate development and financing industries; and
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provide a means of managing
transaction cash flows for the benefit of the syndication sponsor and the
investing-public so that all distributable income is disbursed as it is
earned each month (1 distribution per month); and
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provides a ready means for
collecting management reporting data pertaining to each project for each
month for the life of the project. This can even be further reduced to
the bi-weekly financial data reports that some projects will utilize; and
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provide the means to eliminate
the most common investment risk - bankruptcy risk exposure, construction
risk exposure and foreclosure risk exposure that can be achieved by the
continuing sales of fractional tenants-in-common real estate interests up to
an amount equal to the total development cost budget of the underlying
commercial income-producing property. (For more on how and why this
may happen, click here.)
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