Fractional Dutch Auctions of Commercial Income-Producing Real Estate Properties - TIC Plan Ownership Syndications

Project Due Diligence Reviews & Vetting Process

Each Project Sponsor (and/or developer, as the case may be) must be pre-screened prior to the project being allowed to be listed on the syndication auction bulletin board.  The vetting process is a three-phase approach to project due diligence:

• First, eliminate those projects where the apparent prospects for a successful project development outcome are, in the opinion of Real Estate Plays Dot Com, LLC (the "Syndicator"), unsupported by the facts surrounding the matter.  This usually means: 

  • the capital funding plan has remaining gaps that are not accounted for; and/or 

  • the zoning and permitting processes are not complete; and/or 

  • the required insurance is not (as yet) available for the project; and/or

  • the Developer (or Sponsor, as the case may be) is not using a design/build approach to the project design and construction process; and/or

  • the experience and resources of the project team are inadequate to managing the scope of depth of issues surrounding the development program; and/or

  • the Developer/Sponsor does not have control of the proposed Project Site; and/or

  • the Owner's Program is based upon market conditions that differ from those conditions cited in the Market Feasibility Analysis Report; and/or

  There are additional issues and reasons why a proposed syndication would be placed on hold or denied.  Our covenant with the investing public is to use our due diligence experience to ensure the due diligence documentation for each Syndicate makes sense, is grounded in supportable facts and/or empirical assumptions that, by their nature, are supportable based upon the conditions on the ground.

• Second, expose any underlying due diligence reporting irregularities and/or lack of due diligence documents supporting the developer/sponsor's claims as to the readiness of the project to commence the syndication process; and

• Third, the relative experience of the project development team is vetted.  This final look is to determine that each team member (or firm) has the pre-requisite experience, in the opinion of the Syndicator, to undertake the program at hand.  This includes component interviews for the architectural design, engineering, construction, property management and development management companies providing services in support of the development of the proposed project.

Our goal is to eliminate the most common issues that can result in a project failure; proposals that have little chance of success, incomplete and/or inconsistent due diligence information, and/or an inexperienced firm providing services to the development.  These issues are the ones we focus on and can bring to bear our unique commercial real estate development finance consulting expertise.

What does this all mean to you?

If you are a developer (or sponsor) seeking capital financing for your project you now have an alternative to the private placement offering of securities financing approach - with all its limitations and excessive costs - to fund your project development budget.  

If you are an investor seeking an alternative to investing in stocks and bonds via the public stock exchanges, then you have a new opportunity.  The syndication program focuses on providing the investing public with access to the same types of commercial real estate investment opportunities as the ones that are routinely accessed by the lords of Wall Street.  We take a lot of the guesswork out of the process via our project vetting program.

Send mail to info@realestateplays.com with questions or comments about this web site.

Copyright © 2008 Real Estate Plays Dot Com, LLC

15519 Dawnbrook Drive, Houston, Texas 77068

Telephone: 832.659.5009

Fax: 206.600.5310