Commercial Real Estate Syndicates - Project Development Financing, Consulting & TIC Plans

Welcome to the real estate syndicates services section of the Rainmaker web server.  Here you will find assistance and answers to all of your questions regarding commercial real estate syndicates, the syndication process, the due diligence requirements, the risks and costs.

The syndication process key milestone events are as follows:

• Transaction Threshold.  The transaction must be a financing of $2,500,000 (USD) or more.  The transaction can be in any country (though some countries outside the United States will require political risk insurance that is paid by the sponsor and outside the deal structure).  The client must own the real property interest in fee-simple estate.  No projects with option agreements, unexercised letters of intent or pending purchase and sale agreements will be accepted.

• Due Diligence Review.  The client must provide a comprehensive due diligence documentation set.  If the client doesn't have the due diligence documentation complete they can engage whoever they wish (including or excluding Rainmaker Marketing Corporation) to provide the due diligence documentation:

  • Market Feasibility Study.

  • Financial Feasibility Study.

  • Capital Funding Plan Proposal.

  • Business Plan of Project Department Operations.

  • Environmental Phase I Report.

  • Evidence of Title & Title Insurance.

  • Evidence of Zoning/Permitting for Construction.

  • All Provider Contracts - Design, Engineering, Construction, Development, Property Management and Specialties.

  • Sponsor Background Information & Resumes (Sponsor & Keyman Managers).

  • Utility Will-Serve Letters.

  • Contract Assignments.

  • Memorandum of Leases.

  • Proposed TIC Ownership Plan.

• Capital Funding Plan Proposal.  Rainmaker will provide a final financing plan for review by the client on a fee-for-services basis or the client can wing it themselves and hope for the best.  If and when the client accepts the capital funding plan proposal, the transaction is ready for contract execution.

• Syndication Contract.  Rainmaker will become an owner of the property pursuant to a Tenants-In-Common Syndication Plan (or "TIC Plan") so that Rainmaker may legally advertise its corresponding syndicate interest.  This is done on a 90-day contract.  If the contract is fully sold within that 90-day window, then the client must accept the financing.  If there is less than the projected requirement in sales pending and the client accepts the offers, then Rainmaker's ownership interest is as shown on the contract.  If the client elects to not accept the financing, then the client may not have any further contact, counter-offers or new offers to the syndication group.

• Closing.  All closings are local market - meaning in the county where the project site is located.  We will select a title company (our requirements would be the same as any commercial lender in this regard) that works for everyone.  We prefer a title company that is a national underwriter.