	Your vision is our mission...

Commercial Real Estate Syndicates - Continued...

If the syndicate sells the minimum requirement ($2,500,000 or the difference between the total project capital budget and the project mortgage financing, whichever is greater) then the sales continue up to an amount equal to the total project budget plus the assumed profit spread derived from refinancing or selling the property once it is fully stabilized. If the project involves major construction (and most of them do) then the syndication holding period is limited to three (3) years as a general rule. This means the sponsor has to get the project constructed, opened, operating and stabilized at its maximum sustainable occupancy rate within three (3) years or it is not (as a rule) eligible for syndication without an even more detailed review by the syndication platform than there would otherwise be if the syndication holding period was less than three (3) years. Projects that are acquisitions that have already completed all substantive construction operations and are under continuous operation are assumed to have holding periods of 7 to 10 years because the gains are only incremental to the gain of the syndicates that have construction and development operations still pending.

The syndication platform takes the mystery out of investing. There are three (3) types of syndicates that can be formed:

	Pre-Construction Phase Syndicates. In general, these kinds of syndicates represent the highest level of investment risk because these projects do not as yet have a bankable firm commitment for the construction mortgage financing loan required to complete all activities associated with the acquisition, development and construction of all project assets set forth in the sponsor's business plan. There are limitations on uses of the syndicate's funds prior to closing on the construction loan. These projects have, as a general rule, a 3-year holding period in which the sponsor is projecting a gross return to the investors of 150% to 300%.
	Construction Phase Syndicates. In general, these kinds of syndicates represent slightly less risk than Pre-Construction Phase Syndicates because the sponsor already has a bankable firm commitment for the required construction financing and the syndicate is being formed to plug the equity gap (the difference between the total project capital expense budget and the amount of the construction mortgage loan and any other funding sources). The expected return is in the range of 150% to 250% for a holding period of no more than three (3) years.
	Post-Construction Phase Syndicates. In general, these kinds of syndicates would represent the least amount of risk and therefore require an extended holding period (7 to 10 years) in order to create a 250% gross return (or more) for the syndicate investors pursuant to a business plan proposal made by the syndicate sponsor prior to the closing of escrow.

(Continued)...

Call: 281.537.1200

What's New?

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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.