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

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estate development project in
the eight steps, what would

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

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

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

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a real estate syndicator and
developer myself, I thought it

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would be interesting to break
down to distill in to eight

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difference and an eight step
model of what a real estate

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development syndication project
would look like what they look

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

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

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

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looking to do a real estate,
syndication development project

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

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

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

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

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

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the suitable property and
created business plan. Now,

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

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

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

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

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

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

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

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were going to invest in this
completely blocked thing that

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

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

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

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you're this beautiful luxury
apartments with a with fountains

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

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center that features some some
new novel technology or

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

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

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

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

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

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

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early on what those costs
roughly are going to look like

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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along, you should always be
looking for investors every day

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

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investors growing your investor
network. But this is the step

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

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

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

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

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

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

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

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most developers use US bank
loans or hard money loans or

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

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project, so you need to start
building those relationships

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

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traditional bank lenders,
wherever it's coming from start

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building those relationships, so
that you can get that financing

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

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

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

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my favorite piece is putting the
syndication together. So that

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piece of it, this step really is
putting those necessary

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documents together, getting that
private placement memorandum

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done, the operating agreement
for your entity, the

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subscription agreement for your
investors, getting it ready for

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

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investment to a investor.
Getting all those pieces

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

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

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the legal documents, but putting
the marketing documents

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

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So this is all part of that
still putting that syndication

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

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

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

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

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

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getting those necessary
approvals. Development takes

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

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

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

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

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

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you're managing the
construction, you can watch it

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

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happening. This is another very
exciting part of the development

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

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communicating with your
investors, and you're getting

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them excited. Why are you
getting them excited, because

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

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

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to the project better. Step
number eight, marketing and

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

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

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

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

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

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

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

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

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

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

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and you've completed your first
real estate development

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syndication from opening to
closing. And that is the basic

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

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

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

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Number three, find investors.
Number four, arrange for

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financing. Number five, put
together the syndication. Number

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six obtain necessary approvals.
Number seven, manage the

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construction, and number eight
marketing and sales of the

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

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found that helpful and a little
bit enlightening looking at the

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development process and
syndication together from a high

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

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with your real estate
syndication development or a

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real estate syndication or any
kind of syndication or private

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

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happy to talk with you