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

Due Diligence Documentation "Exhibit E-5"

Approved Site Plan

The following notes are provided pertaining to this exhibit:

What: the Approved Site Plan is considered part of the gold standard of documents that demonstrate the status of the project with respect to the commencement of construction phase operations at the project site.
When: during the pre-construction phase once the market feasibility study and pro forma financial presentation complete to provide a basis for budgetary considerations and the overall development schedule.
Why: one of the biggest risks of real estate investing is the construction and development of the assets. Delays cost real money and bad work delays completions. All of it adds up in the end to extra costs the investor eventually has to pay. The thinking is (therefore) that the project should be ready to go for construction before the investor's money is in play. If it is not, then the Developer's access to the funds must be drastically limited in frequency and cost. The Approved Site Plan tells the syndicate the property is not still subject to delays over zoning and the intended use. The interests of the syndicate are being reasonably protected.
Where: asset development and construction planning phase - the pre-construction phase of the property. This document is filed with the county clerk's office in the county where the property is located.
How: created by the Civil Engineer in consultation with the Surveyor.
What's important: the stamped Site Plan means that the project can - at the least - commence utility and foundation construction on the project site.

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