	RAINMAKER MARKETING CORPORATION 281.537.1200

Senior Housing Mortgage Bankers...

The senior housing industry is also served by a number of senior housing mortgage bankers who focus on providing senior housing loans. A good senior housing mortgage banker should be able to senior housing, mortgage bankers, broker-dealers, investment, financing offer you with a wide array of debt products to capitalize each phase of the senior housing property's genesis. Most senior housing mortgage bankers focus on the FHA/HUD insured loan originations for construction phase project financing and permanent mortgage financing programs.

What you should expect...

The pros and cons of the mortgage banker approach include:

As the name implies, these firms focus on debt financing. Most firms will offer you a construction loan, a construction loan with a mini-perm end loan, or a construction loan with a permanent loan.

Some firms can help fund equity gaps with a mezzanine loan, but mezzanine loan processing is based upon your credit and the assets you will provide as additional collateral.

Straight equity financing is only undertaken if the firm also maintains an investment banking license. If you need equity gap financing, you should be thinking about entitlement financing program alternatives or seeking out an IB firm to help you raise equity.

Most firms do not require an application fee or commitment fee until they have shopped the transaction and have an expectation of being able to sell the loan into the capital markets - usually to a "Qualified Institutional Buyer" (or "QIB").

Most firms do their own underwriting and their own closings. This does not relieve you of the responsibility of providing the necessary due diligence reports that serve to provide independent verification of the development project, including:

Market Feasibility Study. Every development project must have an independent market feasibility study that substantiates the net buildable demand for the class of housing being built, the potential revenue streams, the required project staffing and the services and amenities the project should provide to residents.

Financial Feasibility Study. Every development project must have a pro forma financial presentation that covers all departments on a 5-year forecast basis and include all the main FASB schedules, notes and assumptions utilized to create the presentation.

Capital Funding Plan/Loan Proposal. You will need to create a capital funding plan proposal that covers the key issues and provides a concise presentation of the proposed project funding the firm can use to solicit your construction and permanent financing.

Business Plan of Operations. You need to demonstrate the reporting and management of the proposed project is transparent and proactive. The business plan of operations provides management detail down to the employee class level.

The processing time can vary widely and is largely dependent upon the due diligence materials you provide, the capital investment you are bringing to the table and the type of debt and equity security floats you intend to undertake with their assistance. For specific guidance on this matter please contact a Rainmaker consultant.

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.