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Continued from
previous page... The
structured finance approach we are commending to memory care project developers
(and/or owner/operators, as the case may be) uses the combination of elements in
the capital funding structure to drive the following aforementioned benefits (on
previous page. To create these benefits the financial structure Rainmaker
recommends to developers and owner/operators is as follows:
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Entitlement
Review. Does the project qualify for any statutory benefits in the
form of tax-advantaged investment incentives? If so, these should be
converted into an annuity and discounted to the value that corresponds to
the pre-construction phase of the project. This leaves the door open
for converting it into cash or using it as credit enhancement, increase
interest income or top-coat a loan by substituting risk pool players.
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Condominium
Plan. Can a condominium association plan be created for a portion of
the project space? If the answer is yes, then the object is to create
a condo plan for investment income purposes only and not necessarily a
finite residence per se. State consumer protection laws prevent the
proceeds of these sales contracts from being used until what is effectively
the bitter end of the construction period (last 45 to 60 days). But
having said that, the proceeds would in fact be materially significant if
they can provide what amounts to additional at-risk capital financing for
the last two (2) months of construction; therefore, institutional buyer
condominium plans must be given due consideration.
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Fractional
Real Estate Syndications. The final leg is the creation of a
tenants-in-common ownership structure for the portion of the project that is
not part of the condominium ownership association plan. The resulting
structure is offered to the investing-public on a fractional syndication
basis (each fractional unit being equal to $25,000 in all cases). The
proceeds from a fractional syndication can be applied at the
pre-construction phase of the project's development program; that makes
fractional syndications a "must have" for each and every
commercial real estate development financing.
About
Rainmaker Marketing Corporation...
Rainmaker
Marketing Corporation is a consulting firm that focuses on providing the due
diligence services on a business to business (B2B) basis. Rainmaker
Marketing Corporation can trace its roots back to the late '80's and was
formally incorporated in 1994.
Over
the years, Rainmaker Marketing Corporation consultants have completed hundreds
of assignments across the United States (45 states), Mexico, Canada and the
Caribbean Basin. RMC's new construction project due diligence
documentation services have led to the successful development of
income-producing properties valued (in the aggregate) in the billions of
dollars.
Take
a few minutes and learn more about RMC. This website is designed to
provide a wealth of planning information pertaining to the capitalization,
operations, and organizational program tenets today's savvy entrepreneurial
company must embrace for continued growth and success...
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