Passively investing in real estate through syndication is similar to actively investing, but differences do matter. Like any investment, do your homework. Engage the sponsor team and learn the details of the opportunity. The sponsor team is a group of experienced operators that strategize and execute an investment plan that individual investors, like you, can be part of. This is a tremendous way to leverage into a deal that would not be available to you as the primary investor.
How do you know if the opportunity is right for you?
Does it fit with your investment profile?
Are you comfortable with the qualifications and experience of the sponsor team?
This is your hard-earned money and you should ask lots of questions to help you make an informed choice. The answers won’t all be found in the same place. Many will be in the investment summary or through your own independent research. Some questions can only be answered by the sponsor. To help get you started, we are sharing with you the 50 essential questions we ask before committing to a real estate syndication.
When investing in real estate syndication, all questions are valid. You should go into a deal informed and confident. If you are feeling resistance from a sponsor, imagine what that relationship will be like throughout the project lifecycle. Be persistent. Ask enough of the right questions. Remember, an informed investor is a good investor.
-San Francisco Chapter Leader