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You have questions regarding fractional real estate financing?
Perhaps you would like to know how to participate in a fractional real
estate syndicate as an investor. What are the steps and
issues? Perhaps you would like to know how a
commercial real estate development project financing comes to pass. What are the
steps and issues?
Fractional real estate financing will be as common as owning stock in
a publicly-traded company within the next three (3) years due to the
pressure being applied to the market by individual real estate investors
seeking new real estate opportunities. Rainmaker is building an
international syndication program that will allow for modified Dutch
Auctions for all new Rainmaker real estate fractional ownership
syndications and standard auctions for fractional ownership units that
have a payment history. Either way, the Rainmaker approach to the
syndication market is designed to eliminate the sickening sell-offs and
elimination of value that happens every single business day in the
capital markets (NASDAQ, NYSE, etc.). Rainmaker has created a
program that is not going to be run by investment bankers, for
investment bankers and having investment bankers locking up the deal for
their own benefit at the expense of all else.
Fractional real estate syndications are not securities floats.
You own a specific real property title and deed that goes with your
commercial real estate purchase and sale contract. You have a
closing - just like the one you had when you purchased your home.
Arrangements have to be made regarding the payment of your fractional
share of insurance costs, maintenance costs and real property
taxes. Luckily for you, all Rainmaker new project financing-based
syndications have a solution for these responsibilities "baked into
the deal" for your benefit. Rainmaker's approach is for all
new development programs have a $25,000.00 (USD) contract unit price
(i.e.: every new syndication is divided into $25,000 units) to allow
even the smallest real estate investors the opportunity to own a real
property interest in commercial income-producing properties.
Interests in existing properties will also be eligible for resale.
Each resale auction listing starts at (you guessed it) $25,000 for a
fractional unit.
If you are considering how you may best incorporate commercial real
estate syndicate financing into your development project, you need to
understand the following:
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The project site must be
owned in fee-simple estate. Option agreements, letters of
intent and pending purchase and sale agreements are not
sufficient. If you don't own the site, we can't move forward
because Rainmaker has no interest to purchase and no optioned
interests to accumulate for the benefit of the syndication plan.
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The project sponsor must
provide the same level of due diligence reporting as would be the
case for a private
placement offering of securities.
Assuming these listing condition precedents are satisfied, the
advantages the commercial real estate fractional interest syndication
provides the developer/sponsor are:
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No upper limit on equity
financing.
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Reduction of dilution
potential.
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Increased financial
investment leverage.
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Access to an orderly market for improved liquidity.
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