High Yield Investment Programs Information - Continued...

Prototypically, high-yield investment programs present one of the largest frauds that are ongoing today.  Every single year, billions of dollars of investor funds are lost due to high-yield investment program scams, offshore "investment programs", forfeiting and forex (foreign currency exchange) trading program schemes.  The scammers are quite sophisticated and may have been the basis for the movie The Game that depicts a complicated investment program fraud that becomes a game of life and death.

As with every great scam, the high-yield investment program is based on a factual premise - investor participation in development-stage companies and commercial real estate projects that create attractive yields through the enhancement of the company's  (or project's, as the case may be) operating income as assets are assembled, built and/or otherwise acquired and combined to create a higher operating income.  The resulting operating income is the basis of the gain the investor typically receives as a result of an equity syndication cash-out and/or refinance of the capital funding structure of the project.

Rainmaker Marketing Corporation provides a reasonable alternative to these scams via its commercial real estate fractional (tenants-in-common) syndications.  Rainmaker creates syndications for the financing of commercial real estate developments nationwide and offshore.  Rainmaker's approach is to require each developer/sponsor seeking financing to provide a comprehensive checklist of due diligence documentation that must support the transaction.  Rainmaker then reviews the due diligence documents for the purposes of catching obvious errors and/or omissions that would have a material impact on the proposed project being financed through the syndication fractional ownership interest funding approach.  This approach to syndicating equity financing focuses on utilizing Rainmaker's extensive due diligence documentation experience and expertise in a way that creates a syndication platform that automatically ferrets out the most egregious offenders in terms of project developers and sponsors seeking to finance projects that are not ready to be syndicated and forcing the sponsor/developer to provide in-depth documentation as to the market issues, financial feasibility issues, business model management issues and projected financial returns.