The developer may also want to provide other services for a fee to the project such as development, management and marketing. A venture capital firm provides the financing for an ownership interest. National partner may provide the capital but will probably want control or majority interest in ownership. National company may bring experience, letters of credit to achieve favorable interest rates and name recognition that could benefit occupancy development. May JV with local hospital or church for strength and raising more capital.
Potential residents pay up front entrance fees to reduce debt for borrowing.
In condos, residents own living units and undivided interest in common areas. With co-ops a corporation owns cooperative and corporation finances the project. HUD 213 provides mortgage insurance for co-ops and more information is available by clicking HUD's Multifamily link. A real estate investment trust invests in real estate. May have certain restrictions on facility type, characteristics and high up front costs for issuance, legal, application processes, etc.