How does the process work for sponsors?

• We share two types of deals with our group
  • 3c5 funds (special purpose entities) that are directly investing into real estate (or a single member LLC that holds real estate)
    • In this case, we require sponsor’s provide an investor digital subscription link (with a $1k minimum) so that each of our members who decides to invest becomes an LP (or co-GP) in the project
  • 3c1 funds (aka GP funds, co-GP funds, etc.)
    • In this case, we will create a SPV in order to enable $1k minimum investments from our members and then aggregate commits to act as a single LP to the fund
• Sponsor confirms deal is raising under Reg D 506c
• Sponsor confirms use of third party fund admin and provides link for investor e-subscription
  • Ex third party fund admins
    • Juniper Square
    • Groundbreaker
    • Verivest
    • InvestNext
    • Allocations
    • Sydecar
    • Etc.
• Sponsors provide deal materials or link to deal room (no need to create anything custom for us)
  • Pro forma
  • Offering/Private Placement Memorandum
  • Equity deck (if available)
  • (if land is under contract or has been purchased) lender term sheet
  • Any relevant supporting materials, for example
    • Earnest money agreement
    • Phase 1/2, geotechnical, etc. reports
    • If joint venture with landowner, land contribution agreement
    • GMP agreement with GC
    • etc.
• Syndicate admin creates a light weight deal page composed of
  • Sponsor materials
  • Syndicate admin written deal summary
  • Form for syndicate members to submit non-binding indications of interest
• Syndicate admin provides deal page to sponsor for feedback and approval.
• Once approved, admin sends deal page to syndicate members email list
• If deal page receives >$200k in indications of interest, admin creates a SPV to aggregate commits
  • The SPV is a Delaware LP that will become either a LP or Co-GP in the sponsor’s project entity

What type of deals does the syndicate look at?

• Equity (Co-GP or LP)
• US based
  • Preference for states without an income tax (we believe this reduces entitlement risk)
• Multifamily (rental, condo, manufactured housing, etc.)
  • Our preference is new construction for-sale multifamily in states that do not have an income tax.
• Market rate
• Ground up new construction
  • Open to looking at office-to-residential conversion but not our primary focus
• Stages of interest
  • Pre land tie up: pursuit equity for earnest money deposits and soft costs needed to validate site
  • Equity needed to close on a validated site
  • Soft costs to get to entitlement
  • Equity capital needed to meet construction loan requirements

Does the deal have to be 506c?

• Yes. But if this is an issue, let us know and we will see if there is flexibility

What is the investment minimum for the SPV?