What are the key issues to look at in terms of gauging the prospects for a given syndication opportunity?

We start with a requirement of seven (7) fundamental "proofs" each syndicate sponsor must satisfy prior to the syndication being approved to go live, including:

• proof the sponsor has legal site control of the proposed project site; and

• proof there exists a potential demand for the project as evidenced by an independent market study; and

• proof the total costs of developing the property and stabilizing its operations will create sufficient equity to provide a pay-off and transaction exit to the syndicate investors; and

• proof the property is ready to begin the proposed construction once the required construction mortgage financing loan closes; and

• proof the marketing, sales and operations will be managed by competent professionals and subject to the business standards and key milestone requirements imposed by the syndication platform (measures designed (primarily) to increase financial transparency); and

• proof the development and construction of the property will be managed and executed by licensed third party providers, consultants and contractors having demonstrative experience in similar projects in the past; and

• proof that, wherever practical and possible, the resulting income-producing property will have all assets insured against fire, smoke, wind, water, seismic event, flood and (where appropriate) business interruption insurance and liability policy umbrellas.

To demonstrate compliance regarding the seven (7) major proofs of concept (above) each sponsor must provide certain due diligence documents (below) in form and substance satisfactory to the syndication platform.

Architectural

1.  Architectural Services Agreement – Design/Build Pre-Construction Phase Services Agreement (Exhibit A-1).

2.   Interior Design Services Amendment to Architectural Services Agreement (Exhibit A-2).

3. Architectural Firm Profile (Exhibit A-3).

4. Architectural Firm Personal Resumes (Exhibit A-4).

5. Schematic Phase Design Documents (Exhibit A-5).

6. Schematic Phase Outline Construction Specifications (Exhibit A-6).

7. Project Elevation Drawings or Virtual Tour (Exhibit A-7).

8. FF&E Schedule (Exhibit A-8).

9. Reserved.  (Exhibit A-9).

Construction

1. Design/Build Construction Contract – Pre-Construction Phase Services Agreement (Exhibit C-1).

2. Contractor Profile (Exhibit C-2).

3. Contractor Personal Resumes (Exhibit C-3).

4. Contractor Financial Statements (audited - Exhibit C-4).

5. Contractor Bonding Capacity Letter (Exhibit C-5).

6. Contractor Guarantee of Completion & Gross Maximum Upset Price (Exhibit C-6).

7. Value Engineering Services Agreement (Exhibit C-7).

8. Value Engineering Report/Independent Cost Estimate (Exhibit C-8).

9. Reserved. (Exhibit C-9).

Development

1. Development Management Agreement (Exhibit D-1).

2. Developer Firm Profile (Exhibit D-2).

3. Developer Personal Resumes (Exhibit D-3).

4. Project Business Plan of Operations (Exhibit D-4).

5. Project Marketing & Advertising Plan (Exhibit D-5).

6. Reserved (Exhibit D-6)

Engineering

1. Site, Survey & Civil Engineering Firm Profile (Exhibit E-1).

2. Site, Survey & Civil Engineering Personal Resumes (Exhibit E-2).

3. Site, Survey & Civil Engineering Contract (Exhibit E-3).

4. Property Surveys (metes & bounds, encroachment, topo, etc. - Exhibit E-4).

5. Approved Site Plan (Exhibit E-5).

6. Approved Development Plat (Exhibit E-6).

7. Structural Engineering Firm Profile (Exhibit E-7).

8. Structural Engineering Firm Contract (Exhibit E-8).

9. Structural Engineering Report (Exhibit E-9).

10. Environmental Engineering Firm Profile (Exhibit E-10).

11. Environmental Firm Personal Resumes (Exhibit E-11).

12. Environmental Engineering Firm Contract (Exhibit E-12).

13. Environmental Phase I Report (Exhibit E-13).

14. MEP Engineering Firm Profile (Exhibit E-14).

15. MEP Engineering Firm Personal Resumes (Exhibit E-15).

16. MEP Engineering Services Contract (Exhibit E-16).

17. MEP Report (Exhibit E-17).

18. Reserved (Exhibit E-18).

Finance & Accounting

1. Project Market Feasibility Consultant Firm Profile (Exhibit F-1).

2. Project Market Feasibility Consultant Personal Resumes (Exhibit F-2).

3. Project Market Feasibility Analysis Report (Exhibit F-3).

4. Project Pro Forma Financial Presentation Consulting Firm Profile (Exhibit F-4).

5. Project Pro Forma Financial Presentation (Exhibit F-5).

6. Project Economic Key Milestone Goals (Exhibit F-6).

7. Entitlements Review (Exhibit F-7).

8. Project Capital Funding Plan Proposal (Exhibit F-8).

9. Construction Loan Commitment(s), Mini-Perm Loan Commitment(s), Permanent Loan Commitment(s), Mezzanine Loan Commitment, Private Placement Offering Memorandum(s) & Related Documents (Exhibit F-9).

10. Project Accountant Firm Profile (Exhibit F-10).

11. Project Accountant Personal Resumes (Exhibit F-11).

12. Project Accountant Consulting Agreement: (Exhibit F-12).

13. Project Auditor Firm Profile (Exhibit F-13).

14. Project Auditor Personal Resumes (Exhibit F-14).

15. Project Auditor Consulting Agreement (Exhibit F-15).

16. Project Auditor's Report for Construction Completion (Exhibit F-16).

17. Market Feasibility Analysis Consulting Agreement (Exhibit F-17).

18. Pro Forma Financial Presentation Consulting Agreement (Exhibit F-18).

19. Reserved (Exhibit F-19).

Legal & Organizational

1. Project Sponsor Incorporation Filings (Exhibit L-1).

2. Project Sponsor By-Laws or Operating Agreement (Exhibit L-2).

3. Proposed Project Sponsor Tenants-In-Common Fractional Unit Syndication Contract (Exhibit L-3).

4. Project Sponsor Legal Counsel Firm Profile (Exhibit L-4).

5. Project Sponsor Opinion Letters (tax, organizational, investment entitlements, legal capacity, etc. - Exhibit L-5).

6. Reserved (Exhibit L-6).

Operations & Marketing

1. Property Manager’s Firm Profile (Exhibit O-1).

2. Property Manager’s Personal Resumes (Exhibit O-2).

3. Property Manager’s Services Contract (Exhibit O-3).

4. Reserved (Exhibit O-4).

Project Site

1. Title (Exhibit P-1).

2. Title Insurance Specimen Copy (Exhibit P-2).

3. Mortgage & Liens (Exhibit P-3).

4. Utility “Will-Serve” Letters (Exhibit P-4).

5. Project Aerial Photographs & Locator Map (Exhibit P-5).

6. Evidence of Zoning for Intended Use (Exhibit P-6).

7. Site Real Estate Purchase & Sale Agreement (Sponsor/Project Site Seller Agreement - Exhibit P-7).

8. Evidence of Construction Permitting Availability (Exhibit P-8).

9. Flood Plain Certification (Exhibit P-9).

10. Property Insurance Binder - Property & Casualty (Exhibit P-10).

11. Syndicator's Real Estate Purchase & Sale Agreement (Exhibit P-11).

12. Reserved (Exhibit-P-12).

Looking a lot better?  Now you can begin to see the method behind our approach.  Contact us today with your questions.