Business Loans & Financing for Commercial Real Estate Development Projects...

Most companies seeking business loans routinely start with the bank that provides them with basic business banking services, but the business loans market is far greater than the reach of most commercial banks.  Whether you are seeking project business mortgage financing loans or a permanent mortgage loan, there are some intervening steps between you starting to solicit banks and other commercial firms for financing firms and completing the underwriting and escrow closing.  You should also consider raising additional equity capital via the fractional tenants-in-common syndication method so you can negotiate for a non-recourse construction loan.

Your due diligence documentation has to be updated and ready for delivery via electronic file.  Most clients post the documents in a secure directory and then provide access to lenders, brokers or bankers on an as-needed basis.  Your audience is (potentially) quite diverse, so your documents must be polished and ready for review.

You should take advantage of legal counsel as business lending does not offer the same protections as home mortgage lending or consumer credit lending (car loans, credit cards, etc.).  A good attorney will keep you out of most of the real hot water.  Don't go to the attorney until you have your due diligence documents in order and the proposed capital funding plan is in its final draft form.  If you aren't sure how to proceed with your proposal, then contact a Rainmaker consultant and take advantage of a free initial consultation.

Rainmaker also offers (through an affiliate company) commercial real estate syndications that can be used to fund the equity gap (that portion of the development budget not provided for by the construction loan) and increase the developer's financial investment leverage because these syndications can be undertaken at the pre-construction phase, construction or post-construction/initial lease-up phase of a project's development window.  Click here to learn more about commercial real estate syndications.