RAINMAKER MARKETING CORPORATION 281.537.1200

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Fractional Real Estate Financing - Continued...

You have questions regarding fractional real estate financing?  Perhaps you would like to know how to participate in a fractional real estate syndicate as an investor.  What are the steps and issues?  Perhaps you would like to know how a commercial real estate development project financing comes to pass?  

Fractional real estate financing will be as common as owning stock in a publicly-traded company within the next three (3) years due to the pressure being applied to the market by individual real estate investors seeking new real estate opportunities.  The Rainmaker approach to the syndication market is designed to eliminate the sickening sell-offs and elimination of value that happens every single business day in the capital markets (NASDAQ, NYSE, etc.). 

Fractional real estate syndications are not securities floats.  You own a specific real property title and deed that goes with your commercial real estate purchase and sale contract.  You have a closing - just like the one you had when you purchased your home.  Arrangements have to be made regarding the payment of your fractional share of insurance costs, maintenance costs and real property taxes.  Luckily for you, all Rainmaker new project financing-based syndications have a solution for these responsibilities "baked into the deal" for your benefit.  Rainmaker's approach is for all new development programs have a $25,000.00 (USD) contract unit price (i.e.: every new syndication is divided into $25,000 units) to allow even the smallest real estate investors the opportunity to own a real property interest in commercial income-producing properties.  Interests in existing properties will also be eligible for resale.  Each resale auction listing starts at (you guessed it) $25,000 for a fractional unit.

If you are considering how you may best incorporate commercial real estate syndicate financing into your development project, you need to understand the following:

The project site must be owned in fee-simple estate.  Option agreements, letters of intent and pending purchase and sale agreements are not sufficient.  If you don't own the site, we can't move forward because Rainmaker has no interest to purchase and no optioned interests to accumulate for the benefit of the syndication plan.

The project sponsor must provide the same level of due diligence reporting as would be the case for a private placement offering of securities.

Assuming these listing condition precedents are satisfied, the advantages the commercial real estate fractional interest syndication provides the developer/sponsor are:

No upper limit on equity financing.

Reduction of dilution potential.

Increased financial investment leverage.

Access to an orderly market for improved liquidity.

 

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.

©Copyright 2011, Rainmaker Marketing Corporation, Inc.  All rights reserved.