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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...

Tax Credit Project Financing & Commercial Real Estate Syndications...

Rainmaker typically completes the statutory tax credit project financing review as part of the market feasibility study investment incentive entitlements review. Rainmaker routinely prepares tax credit project financing plan proposals for new construction programs. Tax credits have the requirement for the project to be placed in service before the tax credits may be captured. This means that while the tax credits will be part of the capitalization of the project, the reliance on these credits for a portion of the construction phase capital financing of the project may in fact lead to disastrous delays when the developer finally realizes the timing issue.

Timing plays out in the form of eating up your working capital owing to the continued carrying costs of the development program. These carrying costs include development management fees, contractor pre-construction phase costs, property management marketing program costs, advertising costs, sales costs and related items. These costs don't go away and the impact on working capital is absolutely sinful. Working capital represents the hardest dollars to raise, hardest dollars to justify and easiest dollars to spend; a perfect nightmare for the uninitiated and the ignorant.

Rainmaker Marketing Corporation's structured finance review (therefore) includes the tax credit analysis, but also includes the following additional elements:

Conversion of a portion of the project space plan into a condominium ownership plan. The sale of the condominium units would be to the investing-public. The public would hold these units with an eye towards receiving a share of the operating profits and incremental equity gains created by the units. In turn, the developer receives capital investment that can be pulled into the project in the last 45 to 60 days of the project's construction phase.

Creation of a syndication plan for a tenants-in-common fractional commercial real estate ownership interest equity sale. If the syndication is successful, the proceeds of the sale can be used to:

	provide sufficient equity contributions to induce a construction mortgage financing lender (or private placement offering to create an essentially similar outcome) to close on the construction financing; then
	if sales provide sufficient equity contributions, an amount may be raised, the sufficiency of which induces a lender to provide the construction mortgage financing loan on a non-recourse basis for the project; then
	if still more sales provide enough equity contributions, an amount may be raised to obtain the non-recourse loan and allow the developer to withdraw the developer's seed investment, thus dramatically compounding the developer's long-term holding's internal rate of return; then

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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

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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