1. Overcoming Obstacles to Institutional Real Estate Financing David M. Disick, Esq.

2. Sugarbush Valley, Vermont: Year-Round Resort

3. Whole Ownership South Village at Sugarbush, Vermont

4. Telluride, Colorado

5. Franz Klammer Lodge Private Residence Club

6. Converting Whole to Fractional Ownership Queen Anne Mansion, Eureka, Arkansas

7. WHAT IS THE SECRET TO OVERCOMING OBSTACLES TO FINANCING?

8. A Convincing Business Plan Significant opportunities in Russia American financial community ready to listen Persuade institutions that your project will generate profits at acceptable risk Back up your claims with meticulous financial documentation

9. FOUR STEPS TO SUCCESSFUL FUNDING

10. 1.Catch the banker’s Attention—Secure a personal introduction, if needed 2. Open the banker’s door—Arouse the banker’s Interest 3. Get to the negotiating table—Cultivate the banker’s desire to fund you 4. Access the vault—Negotiate successfully so that the banker takes Action on your request

11. CATCH THE BANKER’S ATTENTION: SECURE AN INTRODUCTION

12. Call upon your personal and business relationships with bankers Enlist a qualified intermediary to vouch for you and your project

13. OPEN THE BANKER’S DOOR: AROUSE THE BANKER’S INTEREST

14. Present your Executive Summary Money invested to date Amount of money sought Expected duration of the investment Return on investment Basic development facts Facts to support your belief that your development will succeed

15. GET TO THE NEGOTIATING TABLE: CULTIVATE THE BANKER’S DESIRE TO FUND YOU

16. Present your Business Plan Executive summary Nature of project—location, construction type (hotel, apartment, home, etc., ownership type or mixed use), Nearby attractions, preferably year-round Ownership or control of land

17. Present your Business Plan Continued… Permit status Amenities to be developed Scope of project--number and type of units, size of units Findings of feasibility study Financial information

18. Present your Business Plan Continued… Project cost Estimated sellout time Estimated revenue and timing Projections and projected profit Best-, base- and worst-case scenarios Assumptions on which projections are made

19. Present your Business Plan Continued… Members of development team—position, background and track record Marketing and sales plan and monitoring procedures Illustrative material—maps, site plan, drawings, renderings, elevations, floor plans, feasibility studies, etc.

20. ACCESS THE VAULT: NEGOTIATE YOUR DEAL SUCCESSFULLY

21. Some Important Items to Know Before Starting Negotiations Size of financial proposal institutional sources are willing to consider –Minimum: US$25 million Projected return on development equity desired –Minimum: 25% Profit splits and “waterfall” of distributions—Sequencing of distributions to the capital source and to the developer

22. Two ways to structure waterfall of distributions : –100% to financing institution until capital is repaid –Ratio of the institution’s investment to developer’s investment Timing expectations: –Return of capital: 2-3 years from funding date –Return on capital: 3-5 years thereafter

23. Additional Considerations for Russian Projects Russian market niche Degree of state/local governmental support Market opportunities afforded by 2014 Winter Olympics

24. Case Studies Big Fundraising Boutique Fundraising Challenging Fundraising Foreign Fundraising

25. The Bottom Line Successful financing requires: Understanding how the individual banker will view your project Gaining the banker’s personal confidence Experience with the financial community Meticulous documentation of the essential information relating to your project

26. Спасибо How may we be of assistance to you? Contact us: David M. Disick, Esq. www.TheFractionalConsultant.com Arkadiy Amelin www.fractionalrussia.com