Syndicated Deals

The Syndicated Deal Process

STEP 1      Review the available deals. Deals are only available to registered members, so if you're not already registered, register now. The listings page provides the deals basic information and a deal analysis report. When you find a deal you're interested in, click the interest button and we'll start the process to get you everything you need to evaluate the deal.

​

STEP 2      Once we receive your indication of interest, we'll send you an NDA specific to that deal. Once it's signed we can provide all the deal details.

​

STEP 3      Once we have your NDA on file we'll send you the link to the page that contains the complete due diligence on the deal. It contains all the due diligence we currently have on the deal.

​

STEP 4      After reviewing the due diligence, we're happy to discuss any questions you have. If you've decided you're ready to move forward, let us know by clicking on the LOI button and we'll coordinate the next steps. This indicates your "Letter of Intent".

 STEP 5      After receiving your LOI, we will contact you to discuss the next steps. At this point we will be reviewing the deal file to confirm that the deal file is complete and that all the necessary details are ready to proceed to close. 

​

STEP 6      Once all the deal file details are verified, and you have in confirmed that you are ready to proceed and close, we move the process to entity formation and legal.

​

STEP 7      The entity formation and other legal aspects are handled by outside counsel. You will be interacting directly with the attorneys, who will explain the entire process and structure to you. They are available to answer questions and ensure that every aspect of the deal is covered. Typically deals are done within a Limited Partnership (LP) structure, in a jurisdiction with strong asset protection laws. As an equity limited partner, your investment is protected by your senior debt position. You get all of your money before we see a dime. It's important to also be aware of the fact that we do not hold or directly control any of the money in the deal. Under the LP structure, all money is managed according to the company bylaws and legal documents by an independent and qualified paymaster. Complete accounting detail is made available to all partners.

​

STEP 8      Once all the legal details have been discussed and agreed to, your investment is sent to escrow (in the new entity) and we proceed to close on the purchase of the property. During this time we coordinate any other loans and financials necessary to close. 

​

STEP 9      We also use the escrow/closing period to formalize bids, secure permits and schedule everything to get started as soon as we close.

STEP 10     Once we close, construction begins. All work is done by licensed contractors and professionals, under strict contract with the LP entity. All work is managed using software that provides partners the ability to see near real time information on the status of every deal. 

​

STEP11      During the post purchase phase, partners will be provided with regular updates and reports detailing the status and financials of the project. We also use this period to begin marketing the property. If the deal is intended to be held as a rental, we will be working to have everything ready to refinance the project upon completion.

​

STEP 12      Once completed, one of two paths is typically followed:

     Option 1) The property is marketed for sale.

     Option 2) We begin the process of renting and stabilizing the property. If the property is going to be held as a rental, we set up the system to rent and manage the property as a rental. Upon stabilization we refinance the property according to the terms we've agreed to with the LP partners. Typically this means refinancing it in a longer term loan supported by the rents. The new loan will typically pay off all prior debts, pay back investors original investment, and provide the opportunity to pay out some of the surplus equity (profit) to the partners. If this path is chosen, we will document the options and the partners will determine how to proceed.

​

STEP 13      The deal is sold or rented and refinanced. All partners money is sent directly to them from escrow. Any remaining legal or financial requirements, such as terminating the entity or generating financial and tax forms will be completed by legal or the financial professionals.

​

STEP 14      HOP A PLANE AND DRINK MOJITOS ON THE BEACH!! 

Okay so maybe that's not really part of the process, but don't forget to enjoy your success in whatever way works for you. 

If you would like to see an example click here. We look forward to hearing from you.

​

The JB Properties & Development Team