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Offering Memoranda - Consulting, Drafting & Production...
The drafting of
commercial
real estate offering memoranda for  private placement offerings of
equity and debt securities includes a necessary degree of due diligence
documentation to support the final offering memorandum.
Rainmaker Marketing Corporation is a commercial real estate development
finance consulting firm that creates the due diligence documents that
support a private placement offering of securities or the structured
finance provisions of a commercial real property
syndication. In either case, the principles involved accrue
to the following issues:
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The creation of
financial investment leverage to the benefit of the developer, the
sponsor (if the sponsor is different from the developer) or the
subscribers of the offering; and
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The reduction of
subjective investment risks to the benefit of the developer, sponsor
and/or the subscribers of the offering; and
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The reduction of the
holding period associated with the investment; and
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The enhancement of
securities or real property interests through the use of investment
incentives provided by a public body or government agency.
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Traditionally, financial
investment leverage is created in a transaction (real property
syndication or private placement offering) as the risks become larger
and more near-term in nature, but that is not the case in today's
market. The capital markets are now, more than ever, being more
efficiently inculcated in every level of capital finance. In
today's world, as the impact of third-party investment incentives is
brought to bear, reliance upon the core business assets for economic
gain is relieved. The end result being to the degree the recipient
of the investment incentive no longer relies upon the project to create
the economic outcome, then a proportional decrease in shareholder
dilution potential is created; this means the project developer can
really cash in on a given transaction.
To the degree the
incorporation of investment incentives that can be, by and large, fully
funded by the completion of all asset development activities, the
greater the propensity will be to a specific security will be tied to
the incentive and not to the core real property-based business. In
return, the financial investment leverage of the developer (or sponsor)
is increased because the developer is garnering capital and not
incurring an associated dilution in equity security ownership.
Find
out more by talking to a Rainmaker consultant today.
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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? |
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