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Rainmaker is the firm to turn to for commercial real estate syndications
assistance. The commercial real estate syndications program has
been designed to provide tremendous flexibility for the benefit of
the project developer (or sponsor in cases where these entities are
different) to maximize the opportunity the developer/sponsor has to
deliver the development project in a timely and cost-efficient manner.
Rainmaker provides
syndication services and the due diligence services necessary to create
a structured finance capital funding plan proposal that makes sense and
provides the greatest degree of risk reduction possible for the benefit
of the investor/buyer.
Under Rainmaker's system,
the investor/buyer has the right to resell their interests at a time of
their choosing. Rainmaker's syndication program focuses on forcing
the developer to provide a buy-back option so that the developer can
flip the entire property at the time of the developer's choosing and at
a sale price that is acceptable to everyone because the buy-back can
option can go either way; someone is getting bought out.
Transactions are
typically structured as one (1) of the following:
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Near-term
pre-construction phase project financing. These transactions
have an expected lifespan of three (3) years or less and are priced
at a multiple of 1.50 to 2.50 times the contract original sale price
that is determined based upon an assumed spread over the average
yield of Standard & Poor's Depository Receipts (SPDRs - commonly
pronounced as "spiders").
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Near-term
construction phase project financing. These transactions have
an expected lifespan of three (3) years or less and are priced at a
multiple of 1.25 to 2.50 times the contract original sale price and
this is the only pay-out the holder receives over the projected
holding period unless the buyer elects to play the transaction
long-term.
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Long-term
post-construction phase project financing. These transactions
represent take-out financing for projects that are already built
(thereby eliminating the construction risk from impacting the
buyer). The expected lifespan of these contracts is 7 to 10
years and are priced at 1.25 to 2.00 times the original contract
sale price and are dependent upon ongoing monthly profit
distributions in addition to the buy-back option.
This approach allows the
commercial real estate investor to pick what phase they wish to accept
(pre-construction, construction or post-construction) in return for a
reward that is commensurate with the risks being accepted.
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