b'entitled, the developer can obtain construction financing, or may sell the entitled land to a builder.Prior to issuing the construction loan, the construction lender will obtain an appraisal of the entitled land. Often, the land value will have appreciated during the entitlement process sufficiently that no additional down payment isrequired,oranothercapitalraisemaybeneededtocoverthedown payment for the construction loan. The equity generated from entitling the land is equity that the original investors can keep. Its important to structure a development deal properly from the start so that additional financing can be obtained as the project progresses, or you want the ability to raise additional capital without having to re-structure your company. Permanent financing becomes available when the project begins to produce sufficient cash flow through rental income or occupancy.Phases of a SyndicateA typical syndicate has three phases and an established waterfall for payingdistributionstoinvestorsduringeachphase.Belowaresome common examples of an asset managers duties in the various phases of a typical syndicate. Waterfalls in a syndication can be quite simple or very complex. We will cover simple waterfalls here, since that is where most beginning asset managers will start. Acquisition Phase In the acquisition phase, the asset manager will: 110'