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| | Commercial Real Estate
Syndications - Continued...
Welcome to the
real
estate syndicates services section of the Rainmaker Marketing
Corporation web
server. Here you will find assistance and answers to all of your
questions regarding commercial real estate syndicates, the syndication
process, the due diligence requirements, the risks and costs.
The syndication process
key milestone events are as follows:
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Transaction
Threshold. The transaction must be a financing of $2,500,000 (USD) or more. The transaction can be in any country (though
some countries outside the United States will require political risk
insurance that is paid by the sponsor and outside the deal
structure). The client must own the real property interest in
fee-simple estate. No projects with option agreements,
unexercised letters of intent or pending purchase and sale
agreements will be accepted.
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Due Diligence
Review. The client must provide a comprehensive due diligence
documentation set. If the client doesn't have the due
diligence documentation complete they can engage whoever they wish
(including or excluding Rainmaker Marketing Corporation) to provide
the due diligence documentation:
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Market
Feasibility Study.
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Financial
Feasibility Study.
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Capital Funding
Plan Proposal.
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Business Plan of
Project Department Operations.
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Environmental
Phase I Report.
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Evidence of Title
& Title Insurance.
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Evidence of
Zoning/Permitting for Construction.
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All Provider
Contracts - Design, Engineering, Construction, Development,
Property Management and Specialties.
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Sponsor
Background Information & Resumes (Sponsor & Keyman
Managers).
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Utility
Will-Serve Letters.
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Contract
Assignments.
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Memorandum of
Leases.
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Proposed TIC
Ownership Plan.
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Capital Funding Plan
Proposal. Rainmaker will provide a final financing plan for
review by the client on a fee-for-services basis or the client can
wing it themselves and hope for the best. If and when the client accepts the
capital funding plan proposal, the transaction is ready for contract
execution.
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Syndication
Contract. Rainmaker will become an owner of the property
pursuant to a Tenants-In-Common Syndication Plan (or "TIC
Plan") so that Rainmaker may legally advertise its
corresponding syndicate interest. This is done on a 90-day
contract. If the contract is fully sold within that 90-day
window, then the client must accept the financing. If there is
less than the projected requirement in sales pending and the client
accepts the offers, then Rainmaker's ownership interest is as shown
on the contract. If the client elects to not accept the
financing, then the client may not have any further contact,
counter-offers or new offers to the syndication group.
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Closing. All
closings are local market - meaning in the county where the project
site is located. We will select a title company (our
requirements would be the same as any commercial lender in this
regard) that works for everyone. We prefer a title company
that is a national underwriter.
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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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