Tying up a property for Syndication

[Shane McGee]

Can anyone explain how sponsors typically tie up properties and how they can minimize their downside in the 2 following scenarios:

1)  A development deal (acquisition of raw land or an assemblage of single family homes to be teared down) that would require about 8 month of rezoning / entitlement before closing land, as well as capital raise + financing

2) A value add deal (acquisition of a cash flowing property) with standard due diligence, capital raise and financing

What are typical terms I should be offering as a syndicator ?

 - Duration of due diligence, capital raise and closing/financing periods

- Type of contract, option, P&S with extended escrow etc

- Customary % of earnest money

- Provisions / contingencies / extension options that protect the sponsor would the entitlement or/ and capital raise fail