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The commercial real estate construction financing market is changing
rapidly and the need for an investment conduit that will free up capital
much in the way that Exchange Traded Notes program has done for public
debt markets. The commercial real estate construction financing
industry has been hobbled by regulatory burdens for the past fifteen years
that have not been allowed the construction financing market to evolve and keep pace with today's global
finance econometrics. The
development of commercial income-producing property continues to place
demands on a system that is not equipped to underwrite risk, so the
financings are (frequently) grossly inefficient because of the need to
have safety margins to cover the portion. This
means the new market solution has to structurally eliminate subjective
investment risks - whenever and wherever possible - so as to allow for the full liberty of capital deployment
in the stock of business enterprise.
Rainmaker Marketing Corporation has created a syndication program that
is second to nobody else in the market. Rainmaker now offers
fractional ownership syndications for commercial income-producing
properties that are under one of the three (3) stages of development, to
wit:
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Pre-Construction
Phase. This is funding for a proposed project that has not
commenced construction and does not have a bankable construction loan
commitment. All other due diligence tasking has been
completed. Developer has to obtain a construction loan
commitment to close. These transactions present the most risk
and therefore present a higher yielding income opportunity that is a
multiple of the historical earnings of the S&P 500.
-
Construction Phase.
This is funding for a proposed project that has not commenced
construction, but has a bankable construction loan commitment. All other
pre-construction phase due diligence reports and tasks are
complete. Developer requires the syndication funds to close on
the construction loan. These transactions present somewhat
lesser risks compared to pre-construction phase projects and the yield
expectation is pared appropriately.
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Post-Construction
Phase. This is funding for a project that is under construction
or has completed construction. Funding is for debt reduction and
reducing long-term bankruptcy risk profile and foreclosure risk
profile for a given project. If the syndication is fully
subscribed the project would eliminate the bankruptcy risk and
foreclosure risk the project would otherwise face until such time as
more and/or new assets are acquired (i.e.: as long as there remain no
changes to the capital finance structure, the resulting
income-producing business activity would be insulated from foreclosure
risk and bankruptcy risk).
Rainmaker seeks to create
a market opportunity that focuses on the utilization of Rainmaker's
experience with development project finance. Rainmaker will
undertake a painstaking due diligence review for every new syndication
listing. The goal is to eliminate those proposals that shouldn't
be listed because:
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Inadequate due diligence
documentation exists to support the syndication. In plain
English, this means the developer has not completed all of his/her
paperwork, the totality of which serves to justify the financing the
developer is seeking; and/or
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The developer has not as
yet purchased the proposed project site in fee-simple title; and/or
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The developer's team does
not appear to have the prerequisite experience to undertake the
project being proposed; and/or
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The due diligence
documentation review finds there to be risks that, in the opinion of
Rainmaker, cannot be adequately quantified and/or qualified and places
an undue burden on the investor.
Get all the information and
learn what you can do with Rainmaker Marketing Corporation helping your
program along.
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