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Section 1031 Real Estate Investing...
Looking
for information regarding IRS Section 1031
real estate investing? This Rainmaker Marketing Corporation
web page (and associated links) focus on basic principles and
opportunities associated with Section 1031 real estate investing.
Today's recessionary market demands you to look at alternatives that will not
necessarily become worthless overnight. Rainmaker
provides:
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Transaction
Screening. Every syndication sponsor must provide a series of
due diligence exhibits (more
than 60 individual due diligence documents!) in form and
substance acceptable to the syndicate platform prior to being
allowed to list the transaction for actual syndication. |
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Proof
of Concept. Every syndication sponsor must provide seven (7)
"proofs of concept" that serve to verify the nature of the
commercial real estate ownership opportunity the developer is
commending to the commercial real estate syndication market:
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proof
they have site control of the proposed project site; and
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proof
there exists a potential demand for the project as evidenced by
an independent market study; and
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proof
the total costs of developing the property and stabilizing its
operations will create sufficient equity to provide a pay-off
and transaction exit to the syndicate investors; and
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proof
the property is ready to begin the proposed construction once
the required construction mortgage financing loan closes and
that no pending zoning petitions or rezoning is required; and
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proof
the marketing, sales and operations will be managed by competent
professionals and subject to the business standards and key
milestone requirements imposed by the syndication platform
(measures designed (primarily) to increase financial
transparency); and
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proof
the development and construction of the property will be managed
and executed by licensed third party providers, consultants and
contractors having demonstrative experience in similar projects
in the past; and
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proof
that, wherever practical and possible, the resulting
income-producing property will have all assets insured against
fire, smoke, wind, water, seismic event, flood and (where
appropriate) business interruption insurance and liability
policy umbrellas.
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The
discussion continues on the next
page.
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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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