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| | Assisted Living
Project Capital Financing...
Rainmaker
provides a robust assisted
living project financing track for nascent and experienced senior
housing developers, alike. Most assisted living project financing
programs leave the  developer with insufficient capital funding to close
on the construction mortgage financing. These "equity gap
financings" create a yawing gap in the capital financing plan
proposal that nobody has been willing to address.
Rainmaker
utilizes a multi-tiered structured finance approach to financing all
types of commercial income-producing real property developments:
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First,
initial funding support must be found that will provide enough
capital to allow the developer to close on a construction mortgage
financing loan for the project. This is typically accomplished
by transforming statutory investment entitlements into a form of an
annuity (or what amounts to the same thing) that can be used to
induce a lender into making a construction mortgage financing
loan. This level of equity financing leverages off the
developer's seed capital investment - an amount ranging from
$300,000 to $500,000; then
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The
second level of funding support is for the developer to raise
sufficient capital to continue the marketing of the fractional
syndication so as to produce enough at-risk equity capital
contributions to induce a lender to provide the construction
mortgage financing loan on a non-recourse basis and with a waiver of
the typical cross-collateralization
requirement; then
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The
third level of funding support is for the developer to raise
sufficient capital to continue marketing of the fractional
syndication so as to produce enough at-risk equity capital
contributions so as to allow the project to obtain a non-recourse
loan and allow the developer to withdraw the developer's seed
capital (making it possible for the developer to constantly
re-leverage the seed capital investment); then
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The
final level of syndicate funding support is for the developer to
raise sufficient capital to continue marketing of the syndicate so
as to produce enough at-risk equity capital contributions to allow
the project to obtain a non-recourse loan, allow the developer to
withdraw the developer's seed capital and retire (where possible)
all liabilities of the project so as to provide the syndicate
investors with an effective shield from the risk of total investment
loss due to foreclosure risk and/or bankruptcy risk.
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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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