“Did I make this clear enough? You’re really vetting the principals or the managing members, if not more, than the pure success of the project itself.“ -Christina Suter
Today I am talking about due diligence for syndicators and what it means to be a part of a syndication deal. Some people don’t want to become experts in real estate, but that doesn’t mean they don’t want to invest passively. A way to invest in real estate this way is by investing with a syndicator. The only downside of getting involved with a syndication deal is no control. That means you are giving up control for passive investing. Doing your due diligence on the syndicator, the company, the principals, the asset/s, financial projections and the deal overall is the most important thing you could do when investing in a syndication project. I use a due diligence checklist that helps me do a full overview of everything including getting the PPM, signing a non disclosure agreement, reading all agreements and financial projections, doing background checks and more.
Topics Covered in this episode:
- What is a syndication deal
- How to vet a syndicator properly
- What should you look for when doing background checks
- Make sure you have a conversation with the syndicator directly
- Why you don’t need to be an expert to be an investor
The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.
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