|
Before you jump on the bridge
loans bandwagon and start shelling out money for "application
fees") it may be that time could be better spent considering the commercial
real estate syndication alternative to using bridge loans or mezzanine loans
to fill your equity gap. Take a look at what's involved in the bridge (or
mezzanine) loan world and you can easily see there are a lot of risks.
Most bridge lenders are lending your own equity and all of them demand
application fees that are non-refundable. It's crazy. You plop down
$10,000 or $20,000 and nothing - no thing - happens. Now what do you
do? You're stuck and you have enough funding to cover the balance of the
pre-construction period if you have something in the bag - like a commercial
real estate syndication. Our affiliate (www.realestateplays.com) offers a
full-service syndication program that offers a level of investment liquidity
that, heretofore, has been impossible to achieve.
The platform doesn't have an application fee. There is no listing
fee. We pay our own marketing and advertising costs to get the job done.
We recommend the sponsor contribute $45,000.00 for each syndication (to be used
for buying full-page advertisements in the market). This further increases
the odds of success as more and more buyers are drawn into the market by which
all syndications would be able to benefit. Simply put, it comes down to
the power of the numbers.
Each listing is for a minimum of $2,500,000 in TIC Plan financing
(Tenants-In-Common Ownership Plan financing). Rainmaker buys $100 worth of
fee-simple ownership with a 90-day option to acquire additional pro-rata
ownership up to an amount that is agreed upon upfront. Rainmaker profits
by selling actual units for more than it pays for them (obviously, but we want
everything disclosed so nobody thinks there's something mysterious going
on here). If sales cross the minimum threshold the client has to take the
financing. You decide for your self and then live with the results.
This means you can continue to seek financing through any commercial real
estate development financing, but chances are you are going to want Rainmaker to
comment on these matters based upon our 15 years of operations focusing on the
due diligence. If you seek to have Rainmaker complete your due diligence
presentation we charge the company's standard commercial rates for conducting
arm's-length market feasibility studies, financial feasibility studies, business
planning, capital funding plans or other third-party reports, as we have for the
past 15 years.
Finally, we can still combine (in many cases) the statutory entitlements
with the development financing being based upon a tenants-in-common ownership
sales financing opportunity. This creates even more financial investment
leverage for the benefit of the developer. Time for you to get
moving. Whether you are a commercial real estate developer or investor,
it's time to have that talk with Rainmaker Marketing Corporation.
If you are confused about what should or shouldn't be done or expected in
your capital funding plan, then contact Rainmaker Marketing
Corporation.
|
