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Assisted Living Mezzanine Loans - Continued...

Continued from previous page...

So how does it all work to create the outcome you seek?

The fractional equity syndication (via the tenants-in-common fractional ownership approach) is a multi-level financing:

  1. Stage 1: provide enough capital contributions for the benefit of the project to induce a commercial lender to close escrow and fund a construction mortgage financing loan for the project (this eliminates the mezzanine loan scenario right out of the gate); then

  2. Stage 2: provide enough capital contributions to allow the developer to close escrow on a construction mortgage financing loan that is non-recourse and eliminates cross-collateralization of the developer's other assets; then

  3. Stage 3: provide enough capital contributions to induce a lender to provide a non-recourse construction mortgage financing loan and be sufficient to allow the developer to withdraw the developer's seed capital; then

  4. Final Stage: provide additional fractional sales to be used for debt retirement/defeasance with the clear goal of retiring all of the project's long-term liabilities.  If this becomes the case, then the syndicate investors will eliminate their exposure to a total loss of investment due to a foreclosure or bankruptcy.  

Mezzanine loans are subject to a lot of issues that require you to learn more before you can earn more...  Talk to a Rainmaker today.

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?

Rainmaker Marketing Corporation can trace its history back all the way to 1989.  Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm.  Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties.  Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services.  Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.

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