Tilden Moschetti: Find a boil
down the syndication of a real

estate development project in
the eight steps, what would

those eight steps be? Let's go
through them.

My name is Tilden Moschetti. I
am a real estate syndication

attorney with the Muscatine
syndication Law Group. I'm also

a real estate syndicator and
developer myself, I thought it

would be interesting to break
down to distill in to eight

difference and an eight step
model of what a real estate

development syndication project
would look like what they look

like from a very high level.
Now, each of these probably has

another 50 different steps. But
I thought it would give a unique

view of, of what the landscape
looks like. So that if you are

looking to do a real estate,
syndication development project

yourself, it might give you an
idea of whether or not it's

something that intrigues you, or
it's something that you want to

run from, I think it probably
will intrigue you enough that

you'll want to keep working on
it. But who knows. So let's go

through what those eight steps
would be. So number one, is find

the suitable property and
created business plan. Now,

obviously, if you're going to
develop something, you gotta

have something to develop on.
And you got to know kind of what

you're developing, right. So for
the the piece on the business

plan, I like to rely on the fit,
of course, the founder

investment theory, what it is
actually, that you're going to

be building should also have a
compelling vision behind it, a

reason for why an investor would
want to invest into this, if you

were going to invest in this
completely blocked thing that

nobody would be very interested
at all, you're gonna have a

really hard time finding an
investor who's going to help you

out do that. If, however, you're
building this fancy resort, or

you're this beautiful luxury
apartments with a with fountains

and a lake or if you're
building, you know, the retail

center that features some some
new novel technology or

something like that, that's
compelling, that's got a story

to it, and people investors are
going to want to invest. And

then you obviously need to find
that property where you can do

that. And then you need to make
sure all the numbers line up. So

the business plan needs to be
complete with exactly how you're

going to do it. In terms of
costs, you got to have pretty

early on what those costs
roughly are going to look like

what the hearts cost side the
soft costs. So what that looks

like, that way you can start
building in a story for your

investors. That's not just an
emotional compelling story, but

also has a rational, this is
what we're going to do component

to it. Number two is start
assembling your team, you can

not do development alone, you're
going to be out there swinging a

hammer yourself, I don't think
so, if development is a big team

effort. So you've got to start
putting those team together,

this team is also going to be
important for your investors to

know who they are, because
you're using their resumes in

addition to yours as reasons for
them to invest, the more great a

people that you've got, the more
interested in investors going to

be to be involved with. So that
is also a major part of it as

well. It's great to give, give a
helping hand to the people who,

who you know, is does great
work, but they don't have a

resume to speak for itself.
That's great, but you gotta have

some heavy hitters in there as
well. And mostly though, you

need to make sure that it's
competent, that it's a team that

have players that absolutely can
deliver, you've got investors

money here, you've got to
deliver for them. Number three,

now, you got to find investors,
you should have been looking all

along, you should always be
looking for investors every day

of the week, every week of the
year, you should be looking for

investors growing your investor
network. But this is the step

now where you're really finding
investors and starting to let

them know that you've got this
project coming along and are

they interested, you got to get
those soft commits, you got to

make sure that the business plan
can go forward and then their

money is part of it. Step number
four is arrange for financing.

So you're going to most likely
be using not only investor money

and you're not going to be
paying all cash. Most likely

most developers use US bank
loans or hard money loans or

some sort of other form of money
in order To complete the

project, so you need to start
building those relationships

with those financers. Whether
they're hard money lenders, or

traditional bank lenders,
wherever it's coming from start

building those relationships, so
that you can get that financing

in place, start building that
model of what it will look like,

from their point of view, how,
what's that interest rate? What

are the terms? What is that
going to look like? Number five,

my favorite piece is putting the
syndication together. So that

piece of it, this step really is
putting those necessary

documents together, getting that
private placement memorandum

done, the operating agreement
for your entity, the

subscription agreement for your
investors, getting it ready for

filing with the SEC, as soon as
you make a sale of the

investment to a investor.
Getting all those pieces

together, this is an exciting
time, because now you've got

really something to show for.
Not only that, not only is it

the legal documents, but putting
the marketing documents

together. And once those are
done, it's getting investors in.

So this is all part of that
still putting that syndication

together. It's not just the
framework of the documents and

the marketing material, but it's
also getting the commence from

your investors getting them to
sign getting that pool of money.

Once that money's there, then
you can go on to Step six. And

Step Six takes place at a lot of
different points. This is just

getting those necessary
approvals. Development takes

approvals from everybody, as you
probably know. And so you need

to be doing that all along the
way so that your project doesn't

stall just because the fire
marshal hasn't signed off on

your deal. And it's now waiting
for two years. That's not a good

situation. Number seven, now you
see it coming together. Now

you're managing the
construction, you can watch it

going up in front of your eyes.
And it's a magical and it's all

happening. This is another very
exciting part of the development

project. Because here it is, all
the meanwhile you're

communicating with your
investors, and you're getting

them excited. Why are you
getting them excited, because

you want them to invest in your
next development project. So the

more excited they are, the more
they feel like they're connected

to the project better. Step
number eight, marketing and

sales, and I'm talking about
marketing and sales for the

future sale of the project. Now
I'm assuming in this video that

it's just being a it's a build
to sell. If it's a build to

rent, then that's another story,
then you're still marketing,

getting that marketing ready for
getting tenants in. If it's

marketing to sale, you're
getting that that what the

landscape looks like in order to
be able to sell this development

that you put together. Once it's
there, then you're you're now

putting it out to market and
you're getting it all done and

and you pay off all of your
investors and it's a grand day

and you've completed your first
real estate development

syndication from opening to
closing. And that is the basic

process. So let's go over those
key eight steps one more time,

just so that they're there.
Number one, identify a suitable

property create a business plan.
Number two, assemble a team.

Number three, find investors.
Number four, arrange for

financing. Number five, put
together the syndication. Number

six obtain necessary approvals.
Number seven, manage the

construction, and number eight
marketing and sales of the

underlying asset itself. My name
is Tilden Moschetti. I hope you

found that helpful and a little
bit enlightening looking at the

development process and
syndication together from a high

level about how it all comes
together. If we can help you

with your real estate
syndication development or a

real estate syndication or any
kind of syndication or private

equity fund, you're putting
together give us a call. We'd be

happy to talk with you