Structured Finance Consulting Services - Commercial Real Estate Development Finance Syndicators

Rainmaker's structured finance consultants focus on commercial real estate development project funding syndications for pre-construction phase project financing, construction phase project financing and/or post-construction operations phase project financing.  Our structured finance consultants can provide the following services:

• Market Feasibility Studies (not available if you intend to have Rainmaker act as the syndicator for your transaction).

• Financial Feasibility Studies/Pro Forma Financial Presentations.

• Business Plans (strategic and operations plans).

• Statutory Investment Incentive Entitlements Reviews.

• Capital Funding Plan Proposals.

• Fractional Commercial Real Estate Ownership Syndication Plans.

In order for a given commercial real estate developer to obtain financing using the fractional real estate ownership syndication approach, the following program must be adopted:

• First, a market feasibility analysis report must be generated.  Rainmaker cannot prepare this document if you are intending to have Rainmaker act as the syndicator of the transaction due to the inherent conflicts-of-interest; then

• Next, a statutory entitlements review must be undertaken because the potential for creating additional funding support for the structured finance syndication approach is too important to pass up.  Rainmaker typically charges $2,500 to $5,000 to complete a statutory entitlements review (those pesky lawyers); then

• Next, the third-party due diligence reporting program must be initiated and provide the following reports:

  • Environmental Phase I Report

  • Surveys (metes & bounds, as-built, encroachment, etc.)

  • Value Engineering Report

  • Staffing Plan

  • Media Plan

  • Architectural (firm profile, services agreement, schematic phase designs & outline construction specs)

  • Development Plat

  • Site Plan

  • Title & Title Insurance

  • Construction (firm profile, design/build agreement, cost estimates, GMP, bonding letter, financial statements)

  • Value Engineering Report

  • MAI Appraisal of Project Site

  • Utility "Will-Serve" Letters

  • Construction Permit (or evidence of its availability)

  • Zoning/Property Entitlements

  • Property Management (firm profile, agreement, media plan, etc.)

• Next, an in-depth analysis of the goals, requirements and key milestone events of the owner's program must be created by the client company (Rainmaker will give you direction on this matter); then

• Next, a pro forma financial presentation must be developed that is predicated upon the findings of the market feasibility study, the statutory entitlement review's findings and the owner's program, each in terms of the other.  Rainmaker typically charges $7,500 to $15,000 for the pro forma financial presentation (this document is quite lengthy - over 300 pages in most circumstances); then

• Next, the project team needs to be qualified and documented for the benefit of the syndication; then

• Next, the proposed capital funding plan is created and the requirements for the TIC Syndication Plan are generated; then

• Next, the syndication "goes live" for a 90-day orderly market exposure.  If $2,500,000 in syndication sales (100 $25,000 units) is achieved the developer/sponsor must close and the syndication sales continue until the syndication is completely sold out (or until the market no longer is interested).  If the $2,500,000 in sales is not met, the developer/sponsor has no obligation to close and accept the funding.

Get some answers for your capital funding needs.  Call us for a free initial consultation.