Construction projects are riskier than buying existing buildings. There are more things that can go wrong. This creates special legal challenges that require experienced guidance. Moschetti Syndication Law understands construction syndication risks.
Construction delays can affect investor returns significantly. Weather, permit issues, and contractor problems all cause delays. The firm’s documents address these risks clearly so investors understand what they’re getting into.
Cost overruns are common in construction projects. Materials and labor costs can increase during construction. Moschetti structures deals to handle these overruns without destroying investor returns.
Phased funding is often necessary for construction projects. You don’t need all the money on day one. The firm creates structures that release investor capital as construction milestones are met.
“Our ground-up development seemed too risky to syndicate until we worked with Tilden. He structured everything to handle construction risks properly. Our investors felt confident and we completed the project on time and on budget.” – U.K.
Construction loans require personal guarantees from developers. This creates additional risks that need disclosure to investors. The firm ensures all guarantee obligations are clearly explained.
Mechanic’s liens can threaten construction projects if contractors aren’t paid. Moschetti’s documents include protections and procedures to minimize lien risks.
Completion bonds and insurance requirements are more complex for construction projects. The firm works with insurance professionals to ensure adequate protection for investors.
For developers wanting to syndicate construction projects, Moschetti Syndication Law provides specialized expertise in managing the unique risks and legal requirements of ground-up development deals.
