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

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Due Diligence Documentation "Exhibit C-4"

Contractor Financial Statements

The following notes are provided pertaining to this exhibit:

  1. What: the Design/Builder's corporate financial statements are part of the criteria weighed in the Design/Builder qualification and selection process.

  2. When: these documents are viewed at the same time as the other contractor qualifications.

  3. Why: if the Design/Builder is in financial trouble, the Design/Builder may not be able to complete the proposed Project, thus exposing the Owner to the risk of construction cost overruns.  Accordingly, the contractor's financial statements are provided and reviewed.

  4. Where: pre-construction phase once the market feasibility study (see Exhibit C-3) and the pro forma financial statements (see Exhibit C-5) have been prepared.

  5. How: electronic file transfer and review.

  6. What's important: the object of the review is to determine if the contractor has sufficient financial resources to finish the job and stand behind any claims made under warranties.

  7. This exhibit is not required for syndications of existing properties that do not contemplate any new construction.

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