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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...

 

 

Bridge, Mezzanine Loans - Project Construction Financing...

Before you jump on the bridge loans bandwagon and start shelling out money for "application fees" and "commitment premiums" (and God knows what else) you have to understand when and where to use these capital financing tools because these are expensive tools to buy.  If you are facing a foreclosure on your commercial income-producing property, we may be able to prove joint-venture financing, so contact our offices if the financing requirement is at least $1 million.

Bridge loans and mezzanine loans serve to very different functions at different times in the deal's genesis:

Bridge loans are used for pre-existing properties to form a funding "bridge" between project states of operation.  If a project is expected to undergo a significant value increase once some milestone has been reached and a temporary financing net needs to be constructed to support the project in the interim, a bridge loan may make sense.  The limiting conditions are the time it takes to get from the present operating state to the next.

Mezzanine loans are used as a capital financing tool to augment the capital financing pie when the developer has insufficient equity resources to qualify the project for additional mortgage financing to cover the gap.  Mezzanine loans do not release the developer from completing the project due diligence documentation requirements regarding the prime mortgage financing and mezzanine loans come with their own caveats and risks.  

Yet another issue is to understand that non-recourse financing is obtained as a result of the structure of the deal; your assets and "credit score" (whatever the heck that subjective thing really is) have little to do with it.  That's where your relationship with Rainmaker Marketing Corporation comes into play; getting the right structural tools makes all the difference.

By example, instead of signing personal recourse and leaving whatever money you have in the deal, what if there was non-recourse financing that allowed you to pick up your seed capital off the table and move on to the next deal, thereby re-leveraging your capital the same way the commercial banking system does?  Are you ready for that concept?

Continued.

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

© Copyright, 2009 Rainmaker Marketing Corporation, Inc.  All rights reserved.

 

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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