Private Placement Offering Investing - Commercial Real Estate Development Financing Programs

The "new century" of private placement offering investing through Internet portals is eroding the position of Qualified Institutional Buyers as the exclusive participants in "sweetheart deal" private placement offerings.  More and more, commercial banks, insurance companies, venture capital funds, hedge funds and pension plans are finding that commercial real estate development financings can provide opportunities that, heretofore, would be unimaginable less than ten years ago.  Today's sophisticated investor is looking beyond the need for near-term liquidity in return for having routine access to private placement offerings that can demonstrate cash-on-cash returns above 25% per annum.  Indeed, the bar seems to be quite high for projects coming in the 2008 pipeline, by providing for multiple equity conversion scenarios that provided investor security (during the construction period - highest risk period) and alternatives for both near-term window investors and mid-term window investors.  The passage of the Economic Stimulus Act of 2008 has even added bonus depreciation expense allowances in on a nationwide basis.  It doesn't get much better than this - despite all of the rumor-mongering that is being blown by political winds.  The wheels of commerce continue to churn and that "most resilient economy" praised by Greenspan will continue to shine.  If you are seeking to invest in commercial real estate development programs, you need to talk to Rainmaker.

The important issues the sophisticated investor has to conquer include:

• Understanding the goals of each capital funding plan that is the heart of the PPM; and

• Understanding how the securities are meant to function within the capital funding plan; and

• Understanding the risks and the plans the issuer has for managing those risks; and

• Understanding the organizational structure of the issuer and how it may be impacted by the various risk elements that can be reasonably expected to impact the business; and

• Understanding the rights of the security holders are being vested in the securities issue; and

• Focusing on the key due diligence issues that are a must when it comes to investing in commercial real estate development financings.

If now is your time, then ask us about your participation in our client transaction pipeline.  Rainmaker covers almost the entire spectrum, but  can offer you the one-on-one or B2B support that you didn't think you could afford.  You can.  Things will look different from the inside.