Commercial Real Estate Development finance

1 market feasibility studies -The market feasibility study is the foundation document that all other due diligence documents, designs and programs rely upon. If you are going to be seeking construction financing from a third-party institution, a market feasibility study is required and it must confirm all aspects of the financial feasibility study (below), the operating program, the scope of the construction program and the schedule of services and amenities.
2. Once the market feasibility study is completed, the next step is the creation of a financial feasibility study that includes all of the major pro forma FASB schedules, the supporting pro forma department budgets, occupancy/utilization schedules and revenue schedules together with a detailed presentation of the notes and assumptions, graphics and a detailed technical discussion of the findings on a month-by-month and year-by-year basis.
3. At some point in the process, the developer (or owner/operator as the case may be) will need to solicit capital financing for the project. This means a summary capital funding proposal must be created for the project and you'll want Rainmaker to prepare your business financing proposal because we prepare so many of them. You can't afford a single error, as lenders and investors receive untold numbers of unsolicited proposals every day. Your proposal has to survive the initial fact check, grammar and form. .
4. In today's capital markets, every real estate development project and developer/promoter is best served by understanding that real success lies in the developer being able to obtain favorable terms for the development financing. This can only happen when a structured funding approach is used that includes real estate syndications and other equity financing enhancements.
5. The federal government is not the only player in the commercial real estate financing capital markets that can provide non-recourse lending 9or what amounts to the same thing). By using a variety of equity funding products, the developer can lower the construction mortgage financing loan's loan-to-cost ratio to a point where a lender can be induced to make the loan on a non-recourse basis and without the dreaded cross-collateralization requirement.
6. Are you looking for more opportunity in commercial real estate investing? 25%, 50%, even 100% per annum cash-on-cash returns? Whether you are looking to be part of the construction risk pool and access an investment vehicle that is designed to provide higher-yielding cash flows (if successful) or take a long-term holding position for investment income.