Assisted Living
Consultants - Continued...
Continued
from previous page...
The
structure of the feasibility study (as it applies to senior housing
assisted living project proposals) developed by Rainmaker is subject to
the following considerations:
-
Incremental
Equity Gain Segregation. A ten dollar term that relates to the
ways in which commercial income-producing properties create equity
seemingly "out of thin air". The incremental gains
occur upon completion of construction and development activities
(the third highest incremental gain), the period of time that
corresponds to the run up to stabilization of the operating program
(the second highest incremental gain) and the time period after
construction and development activities have been completed and the
property attains its maximum ongoing operational capacity (the
highest incremental gain). These gains can be
"tagged" and assigned to specific tranche investors in the
real estate finance continuum. The feasibility study must
define this in terms of the expected operating capacity and the
expected valuation approach and condition precedents. This
means that there are really two (2) points in which to assign risk
tranches in terms of the at-risk equity financing opportunities.
-
Project
Financing Opportunities - Development Phases. Basically, all
commercial real estate projects can in fact obtain at-risk equity
financing as early as the pre-construction
phase. Our approach
is to create an investor syndicate that covers the pre-construction
phase or construction phase activities. Typical commercial
underwriting requires these projects to be developed and stabilized
within a three (3) year period, or they do not qualify for
construction mortgage financing loans - the key to making the
leveraged equity investment work. Each of these
pre-construction phase syndications or construction phase
syndications (has to be one or the other and is never both) can then
be tied to a finite holding period window (obviously, if things go
better than planned, the development period is reduced and if
unexpected events require more time, then a given syndicate may in
fact exceed the three (3) year window - but it is not an intentional
event - it is an event that happens after the underwriting has been
completed and the project financing provided. Every
development phase syndicate will have a take-out financing
syndicate.
-
Take-Out
Financing Syndicate. This syndicate steps into the deal once
the project obtains its maximum operating capacity and provides the
development/construction syndicate with take-out financing and a
finite profit level. Accordingly, these are the most important
syndicates to be formed for a senior housing program.
Syndicates can cover the equity and real property sides of the
transaction.
It's time you had a
rainmaker of your very own and you can get yourself a rainmaker from
the company that markets rainmakers: Rainmaker Marketing
Corporation. Talk to us and see what can be done for your
opportunity.
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
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2009 Rainmaker Marketing Corporation, Inc. All rights
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