Residential Care Facility Construction Financing - Assisted Living Properties & Programs

Senior housing/retirement living developers seeking new residential care facility construction financing on a non-recourse basis have another track to work through for project funding that doesn't have to rely upon the HUD Section 232 Loan Insurance Program.  Rainmaker Marketing Corporation has created a multi-pronged approach to providing non-recourse new construction financing for all types of senior housing and retirement living properties including:

• Entry-fee continuing care retirement communities ("Entry-Fee CCRCs").  The new mainstay of our practice.  The days of multi-million dollar entry fees are probably behind us, but did you know that a median priced entry fee product can deliver staggering earnings while the project is still under construction?  CCRC development cannot be set lightly aside.

• Rental continuing care retirement communities.  The rental model allows the senior housing developer to access the FHA/HUD programs, but it increases the market risk exposure because all of the inventory must be built-out at the same time.  A very dangerous approach that can lead to the developer writing more and more checks out of the developer's pocket.

• Rental assisted living and residential care facilities.  ALCF and RCF property development represent the maturing markets' in-fill opportunities that allow the developer to position a project to capture a portion of the demand base not being addressed by current facilities.

• Rental dementia care facilities licensed at the assisted living level.  Rainmaker wrote the book on dementia care at the assisted living level.  Find out how we can make your dementia care program a winner.

• Condominium housing options for seniors as part of an age-restricted community.  Condo programs being offered on a stand-alone basis aren't nearly as profitable as the entry-fee model.  Rainmaker's position is to sell the condos to investors and then sell the unit to the future resident as an entry-fee interest.  This is the only industry where the double-dip can actually be done within the confines of the law.

Our approach includes the following program services:

1. Project Feasibility Studies.  Market feasibility studies and financial feasibility studies are the cornerstone due diligence documents demanded by most commercial lenders in the market today.  If you are seeking non-recourse financing for your senior housing project (including new construction residential care facilities) then an arm's-length market feasibility study is a "gottstohave" for your lender.  Rainmaker's approach to diligent documentation of net buildable demand, competitive pressures, occupancy rate calculation and unit class comps has become an industry benchmark - especially in the field of dementia care facilities.  Find out more by clicking here.

2. Property Due Diligence.  Have you reviewed all of the statutory entitlements?  Can we qualify this project for the New Markets Tax Credits?  Focus on the various programs can lead to something spectacular.  In addition, we also do plan reviews (easements checks), prepare SNDAs and estoppel certificates.  Find out what we can do to help you.

3. Capital Funding Plan Proposal Drafting.  Before you can go tottering off to the lender, you need a capital funding plan proposal and you need it done to perfection.  There is no substitute.  Presentation matters little if the subject matter is not properly dealt with and the plan does not follow a logical progression.  Count on Rainmaker because Rainmaker creates so many of these plans.

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