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Living Facility Bridge Loans & Alternative Capital Funding Programs - Continued...
Continued
from previous page...
When
the markets tighten credit, the answer is always the same,
increase your equity capitalization. The Rainmaker
structured finance consulting approach uses a 5-point approach
to financing independent living facilities, assisted living
facilities and other forms of senior housing - including
entry-fee communities and CCRCs. Our outcome and goals are
based upon syndication support for the project. The more
support the investing-public gives the transaction, the less
risky the transaction becomes for both the syndicate investors
and the developer, with the ultimate goal being to eliminate the
investors' risk exposure to a total loss of investment due to a
foreclosure or bankruptcy. In
order of importance, the key milestone goals are:
-
Syndicate
enough real property interests to generate equity capital
sufficient to close escrow on a construction loan (no regard
given for the recourse issue here); then
-
If
the first level is achieved and the investing-public
continues to purchase the real property interests, there
will come a point in the sales process where there is
sufficient sales proceeds to induce a commercial lender (or
what amounts to the same thing) into funding a non-recourse
construction loan; then
-
If
syndication sales support continues, there will come a point
in time where there is sufficient real estate fractional
sales proceeds to not only induce a commercial lender into
making a non-recourse loan, but also allow the developer to
withdraw the developer's seed capital (making these funds
available to develop another opportunity); then
-
Finally,
sales of the syndication will continue until the net
fractional sales proceeds are sufficient to retire and/or
defease the construction mortgage financing loan. When
this condition occurs, the syndicate investors would then be
shielded from the risk of total loss of investment due to a
foreclosure or bankruptcy.
If
you like the results, then you'll love our 5-point structured
finance solution for senior housing projects and programs.
Remember, Rainmaker specializes in senior housing so it should
be no great wonder that we created something specifically for
senior housing. Talk to a Rainmaker Marketing Corporation
consultant today.
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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? |
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