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Participating in
institutional-grade investment real estate used to be based upon knowing the
right investment banker or commercial real estate agent because the transactions
were (commonly) restricted to investors who could make a minimum investment of
$100,000 or more. Today's access to institutional-grade investment real
estate projects is now governed - more or less - by your access to the Internet
and those firms that provide investment real estate ownership opportunities per:
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a condominium
association plan. These kinds of condominium plans are not for the
sale of housing wherein the buyer is expected to occupy the demised dwelling
- far from it. This type of condominium association plan is for a
portion of the total space plan of the project. The goal here is to
provide enough sales so as to defray all of the capital expenses of the
development set forth in the last 45 to 60 days of the construction cycle -
why? Because state consumer protection laws keep the developer from
being able to access those sales proceeds any sooner. This could lower
the loan-to-cost ratio of the construction mortgage financing by a factor of
10% to as much as 15% (i.e.: a 90% loan-to-cost ratio construction loan
would become a 75% to 80% loan-to-cost ratio loan - a much safer bet for the
construction lender).
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a fractional
tenants-in-common commercial real estate sales syndication.
Syndication is the act of giving multiple parties access to a given program
and that's what's going on here. Investors purchase deeded commercial
real estate ownership interests and own a fractional share of the entire
property (meaning - that real property that is not part of the condominium
plan) and receive a share of the appreciation income, depreciation income,
capital gains and investment income. Rainmaker supports these
syndications through an affiliate
company that provides syndication services.
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