
	Home \| About Us \| Search \| FAQ \| Contact Us


Syndications are the real opportunity in a recession that can beat the odds and senior housing is the industry to do it with...

Community Development District Plans ("CDD Plans")...

The Community Development District Financing Plan is an alternative to the more commonly used TIF District Financing Plan approach to providing additional funding resources. Rainmaker also offers a commercial real estate investor syndication program that may be accessed for the purposes of financing the pre-construction phase, construction phase or post construction phase capital project costs. The most common funding applications for the Community Development District (CDD) Financing Plan approach are:

	Planning costs (pre-construction designs, engineering, feasibility studies, etc.).
	Land assembly costs (option or purchase).
	Infrastructure development costs (roads, utilities, site amenities, etc.).
	Direct construction costs (building and improvements construction).
	Reimbursements to businesses affected by economic development programs.

Community Development District Financing Plans offer a somewhat broader application of funds than TIF plans (not to be confused with TIC Plans), but these uses are in fact limited from state to state, so it is necessary to understand the process in each state and limitations imposed. CDD's are mainly formed to deal with the dreaded issue of urban blight, as this is the focus of the statute in most cities, meaning:

	There has to be a finding that blight exists. If the subject area is already receiving federal assistance, then it is considered a blighted area and a CDD can be formed with the municipality's approval.
	There has to be a finding of blight being an imminent issue and/or property and economic opportunity for low to median income households is being or may be compromised if it is not addressed.

The most common funding tool used for community development district finance plans is a private activity bond float. The bond float is priced according to market conditions and is normally offered at a premium over rated municipal bonds. Generally, maturities of up to 30 years are available and the costs are reasonable in terms of their impact on the overall capital funding structure and budget.

These plans are not the only answer; in point of fact, they represent a profit-taking opportunity that cannot be expected to provide any financing that would bear on the crucial pre-construction phase or construction phase capital finance structure of your project. If you want that kind of financing you need to be looking at a zero-coupon commercial real estate syndication sales program, because:

	The financing can close while the project is still in the pre-construction phase; and
	The funding will be non-recourse and the attending bank loan will come from a local commercial bank (and it will be non-recourse too).
	The funding allows the developer to get the developer's seed capital up off the table and thereby allow the developer to immediately commence due diligence activities associated with the next project and market (and doubling the developer's financial investment leverage and halving the developer's market risk exposure at the same instant).
	The funding allows the developer to use the syndicate as a long-term source that has no materially-significant imputed interest carry.

Find out more about why you should be looking at a TIF, a CDD, or even abandoning these strategies in lieu of something more attractive and efficient. Talk to a real expert; talk to a Rainmaker consultant.

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

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!


Home \| About Us \| Search \| FAQ \| Contact Us