Section 1031 Tax-Free Exchange Property Financing Information...

The fundamental "proofs" that every syndicate sponsor must provide include:

	proof they have site control of the proposed project site (legally enforceable option, purchase contract or LOI); and
	proof there exists a potential demand for the project as evidenced by an independent market study; and
	proof the total costs of developing the property and stabilizing its operations will create sufficient equity to provide a pay-off and transaction exit to the syndicate investors; and
	proof the property is ready to begin the proposed construction once the required construction mortgage financing loan closes; and
	proof the marketing, sales and operations will be managed by competent professionals and subject to the business standards and key milestone requirements imposed by the syndication platform (measures designed (primarily) to increase financial transparency); and
	proof the development and construction of the property will be managed and executed by licensed third party providers, consultants and contractors having demonstrative experience in similar projects in the past; and
	proof that, wherever practical and possible, the resulting income-producing property will have all assets insured against fire, smoke, wind, water, seismic event, flood and (where appropriate) business interruption insurance and liability policy umbrellas.

These fundamental proofs can be used to the advantage of all parties involved in the transaction.  The transaction preserves the developer/sponsor's economic opportunity by sharing it with the investors in the syndicate.  You decide.