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Get the negotiations assistance you need.  One rainmaker, one opportunity, one result...

 

 

Institutional Investor Negotiations & Consulting

Quite often a commercial bank will reject a loan application that comes through the front door, but invest in a private placement of senior notes for the very same project when presented by an investment banker or mortgage banker.  Sound shocking?  Well, there you have it.  Different rules apply to different situations.  If your deal is structured to provide all of the possible protections and benefits needed to support it in the market, then you have the basis for pursuing capital financing through an investment banker or via a commercial real estate syndication.  If you are seeking to participate in the EB-5 100% non-recourse commercial real estate development financing private placement program, then you need to talk to Rainmaker as we are a joint-venture producer for the program.  Click here for more information on this golden opportunity.

Investment bankers only chase deals they can place without a lot of work because a true investment banker understands the principle of the time value of money and they won't waste time on money hunts that are not gut cinch winners.

Commercial real estate syndications give you a one-time bite at the apple at your "purchaser's conference" meeting.  If it doesn't go off without a hitch you stand to lose quite a bit of money.  Commercial real estate syndications cost hundreds of thousands of dollars to perfect if you want a very high degree of certainty of outcome, so it all has to be flawless in the execution and presentation.

Are you ready to present your deal?  Does the idea of having to provide a cogent and telling financial presentation of the core issues give you a case of the vapors?

Today's savvy entrepreneur has to create a transaction structure that eliminates all the reasons why an investor would reject a given deal.  The sales pitch is definitely the proverbial "elevator pitch".  It has to make sense in a very short period of time.  It has to have a decent yield, but not over the top because those deals have just as many problems because they are determined to be, "too good to be true".  It has to be easy for the investor (or purchaser) to say "yes" and it has to be easy for investors to make adjustments.

More specifically, if you think you are going to the investment banker route, then you need to deal with the following specific issues:

Institutional investors will not accept market risk.  The developer has to take the market risk or eliminate it.  We recommend you have Rainmaker create a plan to eliminate it from your deal.

Institutional investors will not accept construction risk.  No investor (or investment banker) will ever believe that a real estate developer will be capable of managing construction risk for their benefit.  Won't happen and your deal better have the fix for this (there is a fix).

Institutional investors will not accept extended operating risk.  Structure your transaction to eliminate their exposure to the risk or make their financial gain not be contingent upon future operations.  Your choice.  Come to us and we'll show you how to structure out the risk and eliminate the equity dilution hit you seem to be in such a hurry to accept.

Institutional investors are yield-conscious.  The old joke of "gentlemen prefer bonds," is very apropos.  Design your deal to mimic (as near as possible) the benefits of a higher-yielding preferred dividend transaction and the more likely you will be successful convincing the investment banker to go sell your deal.

If you are going the commercial real estate syndication route, you need to deal with the following specific issues:

Commercial real estate purchasers (the term investors only applies to securities sales) in today's market are not going to accept market risk exposure; you have to be prepared to use some form of the zero-coupon approach if you want to have a high likelihood of success.

Commercial real estate purchasers want to be presented a "fully-baked" deal - it has to be ready to go (from all vantage points) and you have to be able to address all of the issues pertaining to the due diligence issues.

And that my friend, is why you need to have Rainmaker Marketing Corporation in your corner - start to finish.  We answer the hard questions and will do the tough assignments.  We live in the financial due diligence world and we can be your rainmaker for the transaction.  You have to hear it on the phone and see it in our documents.  You'll want us to be the ones making the presentation.

Find out more today.  Contact Rainmaker Marketing Corporation.

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

© Copyright, 2009 Rainmaker Marketing Corporation, Inc.  All rights reserved.

 

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! 

 

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