	Your vision is our mission...

Construction Phase Project Financing - Come To The Commercial Real Estate Experts...

The construction phase project financing is typically the third rung in the capitalization ladder that must be "climbed" by the project developer that includes the pre-development phase, pre-construction phase, construction phase and post-construction phase project financing proposal. RMC routinely provides the due diligence consulting services and commercial real estate advisory services that make a construction phase project financing just a bit easier on the stressed-out developer who can't figure out why institutional investors aren't flocking to his/her side.

The reality is that there are some issues that must be dealt with by the developer that institutional investors demand as a condition precedent to the institutional investor's participation.

What activities are not typically financed by institutional investors or QIBs ("Qualified Institutional Buyers")?

Hereinbelow we group them into broad categories:

	Zoning. In almost all cases, institutional investors will automatically reject any project funding proposal that involves a zoning fight. Costs for obtaining zoning and permitting necessary to allow construction to begin are viewed as critical path items.
	Environmental. If the project proposal requires more than the filing of a complete Environmental Phase I study, the institutional investor will require the developer/sponsor to fund the costs associated with environmental reviews and remediation expenses.
	Site Control. Site control is a fundamental requirement for institutional investor consideration. If you don't have control of the site, you don't have control of your transaction and institutional investors will drop the proposal without further consideration.
	Market Feasibility. The project must have an arm's length market feasibility study that substantiates the proposed project and institutional investors will not fund these costs.
	Financial Feasibility. The developer/sponsor group is typically required to complete a pro forma financial presentation regarding the project's anticipated operating and non-operating cash flows. Obviously, it would be very difficult for anyone to judge the merits of a transaction that has no financial feasibility underpinnings.
	Business Plan. The developer/sponsor must have a strategic business plan that clearly demonstrates the efficacy of the proposed scope of operations and the ability of the developer/sponsor to provide management and reporting transparency. Institutional investors will demand to see the strategic business plan as a condition precedent.

Talk to a Rainmaker today and get all the facts.

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.