Real Estate Syndications - New Transactions

If you are the developer and/or sponsor of a commercial real estate development project and are seeking pre-construction phase financing, construction phase financing and/or post-construction phase take-out financing for the post-construction operating environment, then you should be talking to Rainmaker Marketing Corporation about the alternatives available to your by pursuing a commercial real estate syndication.

Unlike a private placement offering where securities (stock, loan notes, bonds and/or hybrid securities) are being offered, the real estate syndication approach provides the sale of real property interests.  These are commonly done via a tenants-in-common approach (the "TIC Plan") and are not under the purview of the state securities board or Securities & Exchange Commission.  The state real estate board has the oversight for these programs.

The syndication approach allows the developer to access funding when it is most needed, but subject to certain due diligence requirements that are designed to protect the interests of the market of buyers.  The most important requirements are:

• Limitation on expensing certain costs prior to closing of the construction financing; and

• Requirement for bankable loan commitment for construction financing prior to release of funds; and

• Limitation of expensing certain costs prior to the completion of construction activities.

Find out all of the answers and ask all of your questions that need to be answered; there's no such thing as a bad question, so contact a Rainmaker consultant today.