| Anchored Retail Project Construction Financing - Continued...The advantage of the anchored retail project development approach lies in the commercial bank lender's ability to sell the resulting permanent mortgage loan note into the secondary market. The credit worthiness of the anchor tenant becomes the basis for future liquidity replacement for the lender. They take a near-term profit, maybe provide loan servicing, but the commercial bank wants (in most cases) out of the deal as quickly as possible. Commercial lenders come with some caveats you need to consider before you jump into their pool. No matter what industry or commercial real estate project group you are seeking to develop, Rainmaker Marketing Corporation can provide you with the types of value-added services that create real financial investment leverage, reduce the project's equity funding gap and/or drastically reduce the equity dilution prospects for the client. If you haven't given serious consideration to the equity dilution issue, then it's time to talk to someone who does understand it so you can come to grips with the nature of the opportunity that these incentives can create for your advantage and benefit. In days gone by, the choices were very limited because investment bankers and commercial bankers had a lock on capital financing - controlling a vast empire of mortgage financing oligopolies that dictated terms to the market. Today, the advent of commercial real estate syndications now creates the opportunity for the developer to dramatically enhance the available cash proceeds for closing without necessarily taking a huge equity dilution hit. Clearly, real estate syndications - for the purposes of providing commercial real estate construction financing - are just now coming into their own and will have a telling impact on the public markets that will only become more intense as time goes forward and communications technologies continue to advance. |
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