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| | Senior Housing
Investment Bankers
If you are searching for
listings pertaining to
senior
housing investment bankers, Rainmaker provides (as a public service) 
listings of these firms. Most senior housing investment bankers are not
specialists in senior housing, but are more focused on the entire multifamily
housing development and permanent financing spectrum. Investment bankers
are not the end-all in project financing. Have you considered the commercial
real estate syndication approach?
The investment banking approach can be a "one-stop
shop" for project developers because:
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These companies can float equity securities for common
equity ownership and preferred equity ownership. Common equity
security floats are the hardest issues to close out because of the nature of
the beast - development financing risks. Development financing is fraught
with a host of risks that institutional investors typically want to
avoid. Some IB firms specialize in this area, but you should consider
all of your options before you jump on any particular capital funding
approach. In short, most institutional investors will be more
interested in investing once the project is up and making money rather than
accept the development risks. |
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These companies can also be a conduit for entitlement
financing. Entitlement financing is the utilization of statutory
incentives and tax-advantaged investments that can be utilized in a
structured finance approach to the development financing needs of a given
project. These investment incentives can make all the difference in
whether or not the transaction closes. |
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Most IB
firms worth their salt can provide a flexible funding structure that rivals
the HUD/HFA loan insurance program approach because the HUD/FHA approach
requires all pre-construction phase reports, studies and designs be
completed prior to closing. The typical project requires $350,000 to
$500,000 to complete and the processing time can easily exceed a year in
many areas. |
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The IB
firm's approach is to throw a bigger net on the transaction by combining
entitlements with private placement offerings of the senior debt securities
and can, in many cases, provide non-recourse financing for the entirety of
the development, construction and permanent mortgage requirements of a given
project. This makes the IB approach potentially very attractive to
developers and/or owner/operators. |
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Most IB
firms will require payment at closing. Upfront costs are limited to
reimbursable expenses for travel, legal reviews and related costs.
This makes the IB approach much more cost efficient to the HUD/FHA approach,
so you need to at least consider this funding alternative in your plans. |
We encourage you to consider
Rainmaker Marketing Corporation to help you navigate the maze of funding issues
and provide you with the due diligence reports (market, finance, business plan,
etc.) you will need to make your application a success.
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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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