|
| |
Non-Recourse
Construction Loans - Continued...
|
Continued
from page 1...
The
commercial real estate fractional ownership syndication program approach
is designed to isolate investors to specific investment holding periods
that correspond to the two (2) main phases of the transaction:
-
the
phase of activities and operations that are undertaken prior to the
date the project has completed all construction operations and has
reached its maximum sustainable operating capacity; and
-
the
phase of activities and operations that are undertaken after the
date the project has completed all substantive construction
activities and operations have already reached their maximum
sustainable operating capacity.
To make
things more clearly understood, the first option relates to the
pre-construction phase, construction phase and initial lease-up phase of
a given commercial real estate project that is expected to produce an
ongoing series of cash flows (housing sales, per se would not qualify -
talk to us about the alternative financing structures). The second
option relates to the stabilized ongoing operations - the key to the
developer's long-term interest in the transaction.
Simply
put, the developer is going to - in almost every case - deal off the
near-term equity gain to the construction risk investors as their return
in the project, while the developer keeps the lion's share of ongoing
distributions resulting from the stabilized operating capacity of the
project. They get the near-term equity gain and the developer gets
the long-term equity gain. This has the added effect of
eliminating the classic conflict-of-interest that has hobbled developers
of commercial income-producing properties - now this issue is gone.
|
About
Rainmaker Marketing Corporation...
Rainmaker
Marketing Corporation is a consulting firm that focuses on providing the due
diligence services on a business to business (B2B) basis. Rainmaker
Marketing Corporation can trace its roots back to the late '80's and was
formally incorporated in 1994.
Over
the years, Rainmaker Marketing Corporation consultants have completed hundreds
of assignments across the United States (45 states), Mexico, Canada and the
Caribbean Basin. RMC's new construction project due diligence
documentation services have led to the successful development of
income-producing properties valued (in the aggregate) in the billions of
dollars.
Take
a few minutes and learn more about RMC. This website is designed to
provide a wealth of planning information pertaining to the capitalization,
operations, and organizational program tenets today's savvy entrepreneurial
company must embrace for continued growth and success... |
