	RAINMAKER MARKETING CORPORATION 281.537.1200

Mezzanine & Bridge Loans - Alternative Real Estate Development Financing Tools...

Most mezzanine loans and/or bridge loans - in the context of the commercial real estate development financing envelope - are considered to be near-term debt financings that create more mezzanine loans, bridge, hard, money, construction, acquisition, refinance problems than the mezzanine loans (or bridge loans, as the case may be, so don't confuse them) cure for the developer and/or owner/operator of a given commercial real estate development project. There are many predatory lenders in the field who specialize in spending your at-risk capital contributions on loan application fees and commitment fees for loans that will never close. This has become so prevalent that Rainmaker Marketing Corporation has created this section on the web server to help you manage the process and weed out at least some of the more egregious examples of predatory lending.

First (and foremost) ask yourself why you are seeking this type of financing. If the intended use of the mezzanine/bridge loan is to replace equity that you DO NOT have, then you are using the wrong capital funding element. Most mezzanine loans are based upon the borrower being lent their own money - in other words - a lending decision is only made if the borrower can demonstrate that they already have the equity investment. If you are seeking to ACQUIRE additional equity financing, then this route will NOT serve your interests. The lender will take your application fee (usually $15,000 to $25,000) and then turn you down. It would be better in these cases to utilize a commercial income-producing property ownership syndication and raise capital using a TIC Plan or condominium investment plan because it limits equity dilution.

Before you trot off to the loan window, you should give some thought to the recent developments in Internet-based data access and communications technology that have led to the boom in commercial real estate syndications. Commercial real estate syndications are the new wave in capital financing and the terms will be a heck of a lot easier to qualify for than one of these products where you will be borrowing your own money.

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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?

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.