Apartment Real Estate Syndications - Multifamily Housing Development & Acquisition Financing

The recent history of the multifamily housing finance market has shown us that most apartment real estate syndications were so low-yielding that the developer (more often than not) was unable to effectively syndicate the proposed financing.  The reality of the multifamily housing development finance marketplace today is the requirement to provide multiple levels of opportunity for the construction risk pool investors for any given apartment real estate syndication (or other multifamily housing syndications such as independent retirement living, assisted living and condos) because developers can no longer rely upon the FHA/HUD-insured loan approach because of the extended application times that quite often result in the developer missing the development opportunity window.  New apartment construction continues in most major markets throughout the country as more and more homeowners are squeezed out of their homes, thus putting more families in apartments and raising overall market occupancy levels.

All of these conditions are favorable to the new construction apartment developer.  The key is getting the project financed in a credit environment that continues to contract, squeezing marginal projects and developers out of the marketplace.  Rainmaker's apartment real estate syndication solution is to:

• create a limited term construction syndicate that has a projected lifespan of no more than three (3) years.  This syndicate will constitute the construction risk pool and the minimum cash-on-cash return will be around 50% per annum (that's right, 50% per annum).

• create a syndication that is designed to be the long-term take-out financing for the construction risk pool.  This pool will see a halving of their opportunity compared to the construction risk pool, but an extended holding window in the range of 7 to 10 years; the goal being to provide a gross return of no less than 250% for a 10-year holding period (for an average of 25% cash-on-cash return per annum).

Once these two (2) syndication approaches have been put in place, the syndication sales will continue until sufficient sales proceeds are generated to provide a higher level of equity financing so as to enable the developer to access the required construction mortgage financing loan on a non-recourse basis and without a cross-pledge of the developer's other remaining assets.

To enable the syndications to take place, the developer must provide certain due diligence documents and Rainmaker is the consulting firm to turn to for due diligence documentation of multifamily housing development financing proposals:

1. First, we are the firm to turn to for market feasibility studies.  We have prepared literally hundreds of multifamily housing market studies and we would welcome the opportunity to prepare your study.

2. Next, Rainmaker is the firm to turn to for your financial feasibility study.  Rainmaker's expertise and proprietary software can make a big difference in the overall turnaround time.

3. Finally, Rainmaker can manage the rest of the due diligence process, provide business plans, capital funding proposals and then back them up with negotiations assistance and development management consulting.

That's the Rainmaker difference; a complete continuum of services designed to help today's multifamily housing developer create multiple levels of opportunity for the organization and the investing-public.