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In the "new
economy", the use of fractional
commercial real estate ownership interest syndications has morphed
into an international business that allows commercial
real estate investors from around the world to access institutional
quality commercial real estate development financing opportunities that,
heretofore, were not even possible to consider because of the size of
the financing and the requirements for disclosure and compliance that
served to limit the utility of private
placement offerings. Now it is indeed a different set of
affairs; fractional commercial real estate ownership syndications are
moving by leaps and bounds to try and catch up with the private
placement offering approach that embosses the entirety of the securities
issuance business. Syndications
of real property interests offer the developer with a financing tool
that will serve new and old, large and small developers and/or
owner/operators with financing available as early as the
pre-construction phase of the project's development schedule. The playing field for syndications has now been
leveled by virtue of the realestateplays.comsm
active syndications server. We help create and define the market potential; commercial
real estate investors from all over the world propel it forward by
providing investment support based upon the prevailing market
conditions. The risks disclosures are on par with the prototypical
private placement offering memorandum. This means that:
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Each listing has a market
feasibility analysis report that demonstrates the stated level
of market absorption as being sufficient (though never guaranteed)
to absorb all of the project's proposed capacity; and
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Each listing has a pro
forma financial presentation or financial
feasibility study that was prepared based upon the findings and
data elements provided in the market feasibility study being the key
empirical assumptions used in the resulting financial model; and
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Each listing has a
complete business
plan of operations for the intended project type to be operated
that demonstrates management's abilities to manage and report upon
the financial results of operating and non-operating events of the
proposed project into perpetuity; and
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Each listing has a
comprehensive array of due diligence reports substantiating one
aspect or another of the proposed project's development,
construction, marketing and ongoing operations (as the case may
be). These include environmental reports, wetlands, structural
engineering, architectural designs, permits, zoning, title, title
insurance, contracts (design, engineering, development, construction
and operations management) and related disclosures; and
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Each listing is for a
minimum investment of $25,000 and multiples of $25,000 in addition
to the minimum. Each syndication is for no less than
$2,500,000 (or 100 - $25,000 fractionalized units). You can
lock-in now and take your time with your due diligence review as
every listing is for 90 days. For everyone's benefit, the due
diligence burden associated with this equity financing method is,
more or less, identical to the due diligence documentation that is
required to support a private placement offering memorandum (except
there will be a real estate sales agreement in place of the private
placement offering memorandum - a considerable savings versus the
private placement route). When it comes to development phase projects,
these savings constitute real money and we know you would like to be able to save
it whether you are a developer or an investor.
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