Independent Living Construction Loans

Senior housing developers seeking senior housing project development loans (including independent living construction loans, assisted living construction loans and CCRC construction loans) can now use the same structured funding approaches that other commercial real estate developers are able to routinely access and use for the benefit of their project development financing ambitions.  Rainmaker is the firm that can help your firm put together the structured capital funding plan, the supporting due diligence documents and syndications on an expedited basis.  With decades of experience and hundreds upon hundreds of completed consulting assignments for senior housing developers of all stripes, Rainmaker Marketing Corporation is your senior housing consulting specialist. 

Independent living facility construction loans can be problematic for the uninitiated senior housing developer who needs the lender to waive recourse and the dreaded cross-collateralization requirements that are all too often part of the loan documents.  Fortunately, Rainmaker Marketing Corporation is the firm you can turn to help you create a fix for the recourse and collateralization issues.  Rainmaker's approach is to provide a multi-pronged project equity funding approach so as to depress the loan-to-cost ratio of the construction loan to the point where the lender can be induced to make the construction loan on the terms the developer is seeking. 

Rainmaker uses a structured finance approach that includes the following program elements:

• Developer seed capital.  Instead of being the primary source of equity for the project, the developer's equity is used as seed capital to complete the various due diligence requirements.  These funds must also be sufficient to gain control of the proposed project site.  Once the program moves into syndication, the developer's seed capital may in fact be eligible for withdrawal (depending upon actual syndication sales).

• Condominium Investment Sales Plan Syndication.  A portion of the project space plan is entitled as a condominium association; not for the benefit of selling housing to dwellers, but to provide a source of at-risk equity capital equal to the total capital expenditures for the last month of the construction period.  This transaction has its own life (expected to be 5 to 7 years) and then be retired via a developer buy-back that results in a cash-on-cash return to the unit owners of 25% to 35% per annum.

• Fractional Tenants-In-Common Commercial Real Estate Syndication Plans.  The venerable TIC plan is now able to become an important part of your capital raising activities because TIC plan sales proceeds are not subject to the same restrictions (in most cases) as would be the case for a condominium plan.  Accordingly, the TIC plan is the developer's big-gun for raising sufficient equity to be able to demand and receive non-recourse financing that doesn't require a cross-collateralization pledge by the developer.

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