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| | Real Estate
Syndications - Capital Financing Programs...
Rainmaker
Marketing Corporationprovides
national and international support for commercial real
estate syndications via  the Tenants-In-Common ("TIC")
fractional ownership syndication approach providing the gap funding requirements
(difference between total project cost and the construction loan
origination amount) for commercial real estate development financings
and commercial real estate acquisitions. In today's competitive capital markets, commercial
real estate syndications provide the individual investor with access to
the same types of assets and/or commercial real estate development
programs that Qualified Institutional Buyers routinely receive.
That's right - the object is to level the playing field for individual
buyers and institutional buyers alike through the listing process so
that your $25,000 investment accesses the same commercial interests that
Qualified Institutional Buyers (called "QIBs" - pronounced
"quibs") routinely receive.
The rules of the road are
as follows:
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Holding Periods &
Hurdle Rates. TIC Plan-based syndications can be used for pre-construction
phase project financing, construction
phase project financing and post-construction phase project
financing (permanent financing and/or take-out financing). The
holding period is adjusted for risk on the basis of the following
multiples being provided over the S&P 500 trailing 5 year
earnings (i.e.: a hurdle rate range of 10% to 14%):
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Pre-Construction
Phase. Multiple of 1.75 to 2.75 times the SPDR hurdle rate
with a 3-year holding period.
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Construction
Phase. Multiple of 1.50 to 2.50 times the SPDR hurdle rate
with a 3-year holding period.
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Post-Construction.
Multiple of 2.50 and up times the SPDR hurdle rate with a 7-year
holding period.
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These hurdle rates
are subject to the supply and demand for the commercial real estate
syndication market. Investors and developers will decide
what the returns potential has to be in order for a project to
acquire all the necessary development financing (or acquisition
financing) to allow a given project (or market
basket of projects) to move into actual
construction.
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| Minimum
Contract. The minimum contract is $25,000 and can be rolled
into an Individual Retirement Account (IRA) using an option feature
to defer taxes and lock-in gains. This means your expected
minimum investment is $25,000.
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Talk
to a Rainmaker.
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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