Your vision is our mission...


Home
Project Site Forecasts
Project Feasibility Studies
Project Funding Proposals
Loan Proposals
Project Business Plans
Offering Memorandums
CDD Finance Plans
TIF & PILOT Plans
Lease Abstracting
Senior Housing Consulting
Business Consulting
Real Estate Syndications
Private Placement Offerings
SEO Website Marketing
Bridge & Mezzanine Loans
Escrow Loans
Hard Money Loans
Tax Credit Financing
A/R Factoring & Financing
Projects & Clients
Glossary of Terms

 

Capital Finance Plans...

Preparing capital finance plans is one of the most important capital formation activities and needs to be carefully considered by the development sponsor/project owner as capital finance plans only get one bite at the apple.  Rainmaker's approach to developing capital finance plans (and other commercial real estate loan proposals, syndication proposals and/or private placement offerings) focuses on the following key due diligence issues:

The Market Case Study.  There must be clear and convincing market evidence supporting the proposed project.  Typically, this is accomplished with an arm's-length market feasibility study.  RMC can provide the market feasibility study, but you can have any qualified consulting firm prepare it.  RMC hopes you will give our firm all due consideration.  This must be summarized and will be part of your eventual proposal that emerges from the due diligence analysis.

The Financial Case Study.  There must be a compelling case made that the financial results of operations will generate materially significant profits capable of servicing the required construction/mini-perm/perm loan and providing a solid return on investment.  Typically, a pro forma financial presentation is prepared for the purposes of demonstrating these issues.  As with the market study, RMC hopes you will give us consideration in preparing the pro forma financial presentation.

The Business Case Study.  Every project funding proposal has to offer clear, concise and factual information that supports management's claim the totality of business operations (i.e.: Pre-Development Phase, Pre-Construction Phase, Construction Phase and the Initial Business Operations Phase) are well within the sponsor's demonstrable skill sets.  Boiled down to the essentials, the "business case study" must show key managers having direct track records of experience in similar operations that resulted in a profitable outcome that investors can appreciate.

The Regulatory Case Study.  Your capital funding proposal must demonstrate that all regulatory oversight issues have been identified and programmed on a basis that transfers the regulatory risk to a third-party in cases where it is clear the project sponsor/developer cannot (for whatever reason) manage this part of the development program.  Regulatory risks are one of the areas where institutional investors will not provide investor funds because these are risks they believe the developer/sponsor should fund.

The Entitlement Case Study.  The entitlements review is frequently left to the side and this is always to the detriment of the developer/sponsor group.  Are there federal incentives and/or subsidies available for this class of assets?  What about the state and local levels?  These questions need to be asked and answered because some incentives can become a materially significant issue when we look at the issues of dilution and return on investment.  RMC can help and you should at least have a cursory discussion with a RMC consultant on this matter.

The Structured Finance Case Study.  The final part of the overall proposal development regimen is the structuring of the various pieces to the "capital stack" into a homogenous group of related elements that serve to provide equity replacement funds, government incentives and institutional market participation in your project.  You have to have a funding order that makes sense and an order of retirement that is acceptable to all parties.

 

Call: 281.537.1200


What's New?

Tired of construction loan rejection letters?  Rainmaker has come up with a whole new way of funding construction that eliminates the developer's reliance upon construction mortgage financing, while creating financial investment leverage greater than 10:1!

All of the information is in our latest white paper.  Click here and download a copy and be prepared to be floored!

Email: consultants@rainmakermarketing.com.  Address: 15519 Dawnbrook Drive, Houston, Texas 77068.  281.537.1200. Open M-F 9 to 5 (CST).

 

About Rainmaker Marketing Corporation...

Rainmaker Marketing Corporation, Inc. is a B2B consulting firm built from the ground up by Clint Lovell on the premise of providing market feasibility studies (hence the name Rainmaker Marketing) to the senior housing development industry for projects seeking FHA/HUD-insured financing.  Rainmaker started business in 1993, though its roots extend back to 1988.  In the intervening years, the depth of services has been enhanced to provide a complete continuum of due diligence documents and consulting services.

Today, Rainmaker has completed literally hundreds upon hundreds of consulting assignments on projects in the housing, health care, retail, commercial office and hospitality industries throughout North America - including projects in 45 of the 50 states, Canada, Mexico and the Caribbean Basin.  The resulting reports and consulting services provided by Rainmaker have resulted in billions of dollars in new development.  Our clients have included publicly-traded companies, privately-held companies, government bodies and not-for-profit organizations.  

When Should You Be Talking To Rainmaker?

If you will be seeking construction financing from a third-party lender (or investor) with whom you do not already enjoy a previous underwriting relationship, then you need to be talking to Rainmaker.  If you have insufficient equity or assets necessary to sustain a construction mortgage financing for a new construction project, then you need to be talking to Rainmaker about the alternatives.  If you have doubts, Rainmaker is the firm to turn to when it's time to deal with them.

© Copyright, Rainmaker Marketing Corporation, Inc. 2004 - 2009.  All rights reserved.