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| | Commercial Real
Estate Construction Lenders...
In today's market,
commercial
real estate construction lenders are setting a whole new level of
hurdles the commercial real estate developer must broach in order to
qualify the project and  entice the commercial real estate construction
lender to issue a bankable financing commitment or close the loan. As
with everything else in a market economy, when the costs of acquiring
a commodity become too high (and construction financing is a commodity
and an investment product) then alternative funding programs and
policies can be implemented to meet the demands of the market. Rainmaker
Marketing Corporation's
approach is to utilize a syndication approach to replace a portion of the
mortgage financing of the proposed project altogether with an equity
product designed to:
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Reduce the amount of
debt capital (loans) that would otherwise be required to fully
capitalize a development-stage commercial income-producing
property. |
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Increase the
financial
investment leverage the developer (or sponsor, as the case may
be) would potentially enjoy by reducing the long-term capital
financing (the permanent mortgage) required. |
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Fill gaps in the
pre-construction phase capital
funding plan and/or construction phase capital funding plan. |
There are other specific
terms and conditions that are set forth in the real property purchase
agreement between the developer/seller and the syndicator/buyer (and
Rainmaker Marketing Corporation can help you with the draft of this documentation set as well).
There are additional rules
and issues that must be considered by the developer before a final
decision on the funding objectives of the project have been
made. These issues include legal/organizational matters,
opinions of counsel, distributions plan amendment, type of entities
allowed and operational and development matters and
contracts.
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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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