| Commercial Real Estate Finance Companies...Most commercial real estate finance companies seek to participate in the commercial income-producing property financing as take-out lenders or full-recourse construction lenders.
Forget about it. They want preferred and they want your eye-teeth with 'em. You have to find a way to level the playing field with the commercial real estate finance companies or become dependent upon statutory loan insurance (e.g.: HUD loan insurance programs) programs that can leave you hanging for an indefinite period of time. But how can you level the playing field when the commercial real estate finance companies seem to be holding all of the cards? Rainmaker Marketing Corporation's approach to commercial real estate financing for new construction projects focuses on equity and increasing the developer's seed capital financial investment leverage. This is where portfolio development programs become a reality. Our consultants create the due diligence documentation for the purposes of acquiring non-recourse construction loans, creating the condition precedents that would allow the developer to pick up their seed capital off the table and then reapply the seed capital to the next project. We do this by combining statutory entitlements, condominium investment association plans, fractional real estate syndications and pre-sales for the sole purpose of increasing equity contributions to a point where the lender can be induced to make a construction loan on a non-recourse basis. Statutory entitlements can be translated into a hybrid form of an annuity and used to purchase credit enhancement for the construction loan (or what amounts to the same thing) to entice the lender to make the loan on a non-recourse basis. We use the condominium investment association plan for the purposes of raising equity capital - and not the sale of condominium units for housing per se. The condominium plan sales proceeds can be called in the last 45 to 60 days of the construction program, thus (once again) lowering the loan-to-cost ratio of the construction loan. Find out more and take advantage of a free consultation. Talk to the professionals at Rainmaker Marketing Corporation. |
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