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| | Tax Credits,
Entitlements & Private Activity Bonds...
The use of
tax
credits in the commercial real estate development  financing
continuum has created a whole new level of project-based structured
finance opportunities for developers and owner/operators who understand
the advantages tax credits (and other tax-advantaged investment
products) can provide for their projects. Generally speaking the
most common tax credits come in the following "flavors":
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Housing
Tax Credits - the development of multifamily housing for low-income
and moderate-income households can be augmented with the Section 42
Low-Income Tax Credit (called a "LIHTC" in the business). |
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Brownfields
Tax Credits - if you have a site that is an environmental nightmare,
Brownfields Tax Credits may be your ticket to making the project
work. |
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New
Markets Tax Credits (NMTCs) - there are development incentive tax
credits that are provided based upon a qualified use and a qualified
location. |
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Historical
Preservation Tax Credits - if you are renovating a project that is
on the national historical register, then your project qualifies for
the Historical Preservation incentive. |
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Bonus Depreciation Expense Allowance - for 2008, the Economic
Stimulus Act of 2008 provides a one-time 50% bonus depreciation
expense write down if you place a qualified business asset in
service this year. This can be a huge windfall to your average
real estate development project that includes rental multifamily
housing, senior housing, retail, mixed-use, hospitality and
healthcare properties. It's broad, it's big and it will have
an impact on your proposed capital funding plan without a
doubt. There are also certain "GO
Zones" where this benefit can be accessed. |
If you are not sure on how to go about obtaining these powerful
investment incentives, then contact Rainmaker Marketing
Corporation. Rainmaker Marketing Corporation can provide:
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Complete entitlement reviews at the local level, state level
and federal level. |
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Create draft allocation plans that serve as the linchpin for
creating a structured finance solution that can - in most cases -
result in equity replacement (you save that important risk capital
but don't have to face an enormous dilution hit for having done
so.). |
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Provide access to investment bankers and allocatees that will
play the game fairly with you regarding your entitlements. |
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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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