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Commercial real
estate syndications in the United States represent the next great
wave in commercial investment activities seeking ways to increase
the financial investment leverage in commercial real estate
syndications in general, and the incredible profitability potential of
commercial real estate development finance transactions in particular.
The "new wave"
potential is a direct result of the sub-prime mortgage meltdown that was
long overdue for single-family housing sub-markets that were powered by
the rudest possible claims regarding profits and risks. Commercial
real estate development financings present their own challenges to be
sure, but the sheer volume of transactions and demand for new
transactions may take the total volume over $10 billion this year.
This means that syndication support is no longer a dream, it's a
reality.
Rainmaker Marketing
Corporation is the firm to turn to in this industry because:
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Rainmaker has a
definitive track record in the preparation of the supporting due
diligence documentation required to substantiate a commercial
real estate development financing transaction; and
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Rainmaker is the firm
the developers turn to for the purposes of creating a structured
finance plan that can be encapsulated into a given transaction; and
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Rainmaker is the firm
to help you create the actual syndication plan and (under strict
conditions) actually syndicate the resulting real property interests;
and
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Rainmaker provides
direct syndication support via the Tenants-In-Common
("TIC") ownership plan to fulfill the purchase
requirements for all TIC Plans of $2.5 million or more.
The question is whether
or not the transaction will qualify. Generally, the rules of the
road would be as follows:
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Yield. The
yield must be acceptable for the risk being taken and the holding
period requirement. The target return is a multiple of an
established equity index like S&P Depository Receipts (SPDRs).
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Holding Period.
Pre-construction phase financing requires a holding period that is
coterminous with the completion of construction. This means
you better have your entitlements review complete and structured
finance plan that incorporates all investment incentives.
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Costs. Your
transaction's costs are yours to fund. If you do not have a
complete due diligence presentation that is appropriate to the
context, we cannot help you. You have to pay your own way.
Rainmaker absorbs its own costs when it comes to the actual
syndication of the TIC plan. You need to do your end.
If you would like to
learn more about what Rainmaker can do for you, pick up the phone and
learn more about us. The first consultation is always free.
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