Pre-Construction Phase Project Financing

The pre-construction phase is defined by the following matters being completed:

The pre-construction phase cannot be considered to commence until the following condition precedents are met:

Developer/Sponsor has site control (purchase and sale agreement, letter of intent or option contract executed and legally enforceable); and
Developer/Sponsor has the required zoning and construction permitting available. If a re-zoning is required, then the project is not going to be able to attract capital investment from qualified institutional buyers ("QIBs") until it does; and
Developer/Sponsor has demonstrated that market support exists for the project. This is usually demonstrated by an arm's-length market feasibility study being complete and available; and
Developer/Sponsor has demonstrated the pro forma financial results of operating and non-operating events that can be realistically assumed to be attainable has been prepared and verified by third-party reports to the greatest extent possible.

If you don't have it, then you need to get it. If you don't know where you can get these documents then please contact RMC and we'll discuss it with you and give you some options.

Rainmaker Marketing Corporation is a consulting firm that focuses on providing the due diligence services on a business to business (B2B) basis. Rainmaker Marketing Corporation can trace its roots back to the late '80's and was formally incorporated in 1994.

Over the years, Rainmaker Marketing Corporation consultants have completed hundreds of assignments across the United States (45 states), Mexico, Canada and the Caribbean Basin. RMC's new construction project due diligence documentation services have led to the successful development of income-producing properties valued (in the aggregate) in the billions of dollars.

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Pre-Construction Phase Project Financing - Commercial Real Estate Development Projects & Programs