	RAINMAKER MARKETING CORPORATION 281.537.1200

Commercial Real Estate Bridge Loans - Continued...

In the structured financing approach above, there is no mention of bridge loans, mezzanine loans or hybrid loans. The reason for not using these funding resources is that the funders will require personal recourse on the part of the developer. The result of this approach does not create financial investment leverage because the developer is still responsible for repayment if the transaction fails. On the other hand, using real estate syndications to generate at-risk capital can create financial investment leverage. This is possible because the developer can divide the project into a two-part financial opportunity where the developer owns the ongoing operating business interest (undivided) and the investor pool owns the real estate interest in the form of a condominium investment plan and a tenants-in-common fractional ownership syndication investment plan.

The resulting structure of the transaction's capital financing would be as follows:

	Developer capital contributions being made subject to being withdrawn if equity contributions are sufficient to allow the withdrawal to be approved by the lender.
	Entitlement financing of tax-advantaged incentives and/or tax credits that are used to purchase credit enhancement for the construction loan and/or buy-down the project construction loan interest rate.
	Condominium investment association plan for a portion of the inventory wherein the net sales proceeds of the condominium plan are equal to the capital financing requirements of the last 45 to 60 days of the construction phase.
	Fractional tenants-in-common syndication plans for providing at-risk equity contributions to meet the multi-layer program precepts and provide capital funding as early as the pre-construction phase.
	Construction mortgage financing loan for the balance of the financing requirements.

Talk to a Rainmaker consultant and see what commercial real estate financing programs can be used for your project's capital finance needs.

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?

Rainmaker Marketing Corporation can trace its history back all the way to 1989. Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm. Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties. Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services. Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.