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Providing comfort through proof of funds

Syndicators are oftentimes still raising funds and don’t have an official way of providing proof they have or will have the funds to close. Going about providing comfort to a seller is deal by deal. If you've got a really hot asset, and a lot of really good offers for it, an easy way to disqualify someone is by looking at the syndicators that still have to go out and raise funds. A lot of the really big syndications keep significant liquidity in an account for those hot asset, multiple offer situations. But to get around it I suggest being upfront and saying to the broker, I know you’re looking for a surety of close, I know that's important. We want to make you Mr. Broker look good to Mr. Seller and so here are the last four transactions we've done. We raised the capital in the first six days. Here are the three lenders we work with who can speak to our ability to close and the kind of deposits and deals that we've done with them. Here are the last two brokers we've done deals with that's what you can call on and hear how we handled the transactions we did with them. You want to give the broker and the seller the peace of mind that you raise equity very quickly and here's our track record. Otherwise, they're going to disqualify you. If there's a track record it will certainly help keep your offer in the pile. And that's what it’s really about. When we're having our conversations on the best and final offers with the seller, and the seller asks who among the best offers who’s the buyer that's going to show up to closing? Is it going to be the guy who has to raise money for the two first two weeks of his 30-day due diligence or the buyer who already has $8,000,000 liquid in his account? Again, there are a lot of factors, the type of asset, the market, etc. But if you're up against some of the liquid buyers, you have to be able to provide comfort that you're going to be there at closing, and I’ve seen this work a few times.

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