	RAINMAKER MARKETING CORPORATION 281.537.1200

Construction Phase Project Financing, Lending & Investment...

The construction phase project financing is typically the third rung in the capitalization ladder that must be "climbed" by the project developer that includes the pre-development phase, pre-construction phase, construction phase and post-construction phase project financing proposal. Rainmaker Marketing Corporation routinely provides the due diligence consulting services and commercial real estate advisory services that make a construction phase project financing just a bit easier on the stressed-out developer who can't figure out why institutional investors aren't flocking to his/her side.

The reality is that there are some issues that must be dealt with by the developer that institutional investors demand as a condition precedent to the institutional investor's participation.

What activities are not typically financed by institutional investors or QIBs ("Qualified Institutional Buyers")?

Hereinbelow we group them into broad categories:

	Zoning. In almost all cases, institutional investors will automatically reject any project funding proposal that involves a zoning fight. Costs for obtaining zoning and permitting necessary to allow construction to begin are viewed as critical path items.
	Environmental. If the project proposal requires more than the filing of a complete Environmental Phase I study, the institutional investor will require the developer/sponsor to fund the costs associated with environmental reviews and remediation expenses.
	Site Control. Site control is a fundamental requirement for institutional investor consideration. If you don't have control of the site, you don't have control of your transaction and institutional investors will drop the proposal without further consideration.
	Market Feasibility. The project must have an arm's length market feasibility study that substantiates the proposed project and institutional investors will not fund these costs.
	Financial Feasibility. The developer/sponsor group is typically required to complete a pro forma financial presentation regarding the project's anticipated operating and non-operating cash flows. Obviously, it would be very difficult for anyone to judge the merits of a transaction that has no financial feasibility underpinnings.
	Business Plan. The developer/sponsor must have a strategic business plan that clearly demonstrates the efficacy of the proposed scope of operations and the ability of the developer/sponsor to provide management and reporting transparency. Institutional investors will demand to see the strategic business plan as a condition precedent.

Talk to a Rainmaker today and get all the facts.

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?

Rainmaker Marketing Corporation can trace its history back all the way to 1989. Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm. Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties. Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services. Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.