Equity Capital Financing - Continued...

The structured finance approach we utilize includes certain proprietary components and processes that are based upon the following equity capital financing structure and order of elements:

	Statutory Investment Incentives.  These are entitlements that provide a tax credit or tax-advantaged investment incentive to the developer once the project is placed in service (meaning construction is complete and onsite operations commence).  Accordingly, these benefits are used to purchase a form of credit enhancement, an interest rate buy-down (or what amounts to the same thing).  Our goal with these programs is to avoid any entitlement that requires an application process that includes application ranking and awarding because you never can tell if you'll hit the lottery or not, so focus is placed on those items that are available based upon statutory relief.
	Condominium Investment Association Plans.  These are condominium association plans formed for the purpose of creating investment opportunities and not as housing to be occupied by the buyer.  These programs can provide as much as 10% of the capital funding budget and cannot be lightly set aside even though these are typically the last funds invested into the project.
	Tenants-In-Common Fractional Real Estate Ownership Interest Syndications (TIC Plans).  A TIC plan may provide capital investment to the developer as soon as the pre-construction phase.  This is the most important aspect of the entirety of the capital funding plan proposal because these sales can continue on and on until the entire project is sold out (and thereby capitalized with 100% at-risk equity contributions).  This approach allows the developer to maintain a high level of financial investment leverage while allowing the investing-public to cash in on the construction risk pool participation program.

Learn what can be done for your company and your project.  Is an equity syndication the right move here?  Does a TIC plan make more sense?  What issues must be dealt with to achieve success?  Talk to a Rainmaker consultant and get the answers.