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100% LTV Non-Recourse Commercial Real Estate Construction
Financing
If
you are seeking 100%
LTV non-recourse commercial real estate construction financing for your
development financing needs (or a refinancing, equity cash-out or sale), then it
is probably a good idea to look at the 100% LTV non-recourse funding syndication
program from Rainmaker Marketing Corporation. This financing program is a
syndication using the retail distribution channel (to understand how those work download
the white paper on this topic and review it) to generate the necessary
market response. The expected response rate currently works out to a
marketing, advertising, sales and administration load of approximately 6.23% (as
of September, 2010 and definitely subject to change) of the total plan sales and
approximately 3.5% is front-end load (the cost of advertising, marketing and
structuring the syndication) that you will have to fund in advance of the
syndication. Let's be clear on this: you will fund the costs of
advertising and marketing the syndication - not us. The minimum
syndication that qualifies for the 100% LTV non-recourse financing for
commercial income-producing property developments is $7.5 million. This
means your front-end syndication costs will be a minimum of around $275,000 -
$350,000.
In addition to these costs you will have to be able to deliver
the usual due diligence documents. and the costs owing to these reports and
documents are yours to bear and fund. As d emonstrated in the white paper,
the likely cost to support a syndication using a retail distribution channel
(from soup to nuts) is likely to exceed $1 million in order to do a quasi-public
syndication. Syndications aren't free and commercial real estate
development requires real capital in order to undertake a project. On the
good side, the retail channel syndication can be set-up and closed in less than
a month and the first check out of the escrow account goes to the developer as a
refund for all of the syndication and due diligence costs. You can even
fund out land equity in most cases so you need to read the white paper.
Rainmaker
specializes in senior housing properties but has broad expertise and experience.
The industries we typically serve include:
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Housing
- senior housing (all classes), multifamily housing (all classes),
tract housing programs and master-planned communities.
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Health
care - medical office buildings, acute care, LTAC and other health
care facilities development projects.
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Retail
- from neighborhood strip to super-regional power center and beyond
to mixed-use, big-box, small-box and specialty retail project
development projects.
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Lodging
- hotels, motels, condo hotels and resort development projects.
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If
you are seeking to develop a commercial real estate project and are worried
about attracting capital funding in the current economic cycle, then you should
be talking to a Rainmaker consultant. Talk to the industry leader and
expect to be impressed. Straight talk and detailed answers to all of your
questions.

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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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