Non-Recourse Conduit Loans, Investments, Fundings & Financings...

Developers seeking non-recourse conduit loans and/or equity financing syndications can now combine their requests into a single program track to minimize the carrying costs and due diligence documentation requirements for new construction commercial real estate projects, nationwide.  Rainmaker Marketing Corporation focuses on creating the condition precedents to allow non-recourse conduit loans (or what amounts to the same thing - a commercial lender non-recourse loan) to be acquired if the developer utilizes the equity financing syndicate approach to lower the proposed loan-to-cost ratio of the proposed loan by dramatically increasing the project's equity contributions.

The key to making this happen is an understanding of the flexibility that can be engineered into the capital financing structure of the new construction project for the benefit of the developer, the project employees and the investing-public:

1. Increasing equity capitalization in the project can be done without necessarily creating additional equity dilution on the part of the developer; far from it as every Rainmaker structured project provides the developer with the opportunity to get a free earn-out to ownership of up to 90% of the project equity pool.  This allows the developer to move forward on the basis of an understanding that market timing (either for disposition of the asset or for a refinancing of the existing debt) is now a practical consideration that can be very beneficial.

2. Dividing the project into two (2) categories of ownership: the income-producing property ownership investment income opportunity and the ongoing business operations income opportunity.  By dividing the resulting project into two (2) separate pools of ownership interest, the developer can shield the investor pool from a majority of the liabilities and subjective investment risks the pool would otherwise have to bear, while creating the opportunity for finite holding period opportunities that allow different groups of investors (having different goals from group to group).  The resulting conduit loan, while being non-recourse, must be considered in terms of any cross-collateralization requirements the conduit may have as opposed to other non-recourse loan opportunities that may be available.

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