Starting a REIT in Poland... + Syndication?

[Adrian Mahdian]

So, I am gathering market info...

... to get profits for us foreigners in this Polish Market

For you who have done syndications (or REITS) before, should I be looking for the deal first? Or the investor? or an experienced investor (Mentor)?

I have a gut feeling looking for the deal will bring the other 2 somehow!

[Scott Mac]

Re: Syndication:

This is my view on it--like building blocks vs hoping.

[1] Know the securities laws of Poland. (identify and preliminary speak to a lawyer who handles securities in Poland).

[2] Know the tax laws of Poland as they relate to your investment--begin to line up a tax person for the business venture and for yourself personally (talk about cost to employ, and some strategy).

[3] You will need to have a lender lined up (identified), and know what is required by them.

The Lender is your main partner in the deal and drives a lot of what you can and can't do.

Read the loan docs (and understand them) while making notes on them as you see fit.

Contact the lender and discuss nuances of getting the loan (how much kicker money is needed, ie. surveys, bank fees, etc...), and what you (or your General Partners will need to be to get the loan (net worth, experience, credit history, cash reserves, etc...).

Talk to a few lenders looking for more favorable terms...

Note: the Right #1, #2 and #3 might be able to introduce you to an investor.

[4] Know how to underwrite the deal, and understand that 100%, not guessing, or on a wing and a prayer.

[5] Get the agreement of a money person. You will need to have your money ready to cut a check, and your money person ready to cut a check.

That will tell you (based on your underwriting) what you can buy.

Unless you are a member of rich clique (such a Yacht club or etc...) finding a big money investor might be hard, but with #1,#2, #3, and #4 under your belt--you can (as they say in the boxing world) come out swinging.

Once you have that, looking for a property becomes simple underwriting and negotiating.

Where will you get the earnest money % from? Do you have that set aside?

Good Luck!