What questions should I ask a syndicator?
If you are considering investing in a real estate syndication, it is important to thoroughly vet the investment opportunity and the syndicator. Here are some key questions you should consider asking:
What is your track record and experience in the real estate industry?
What is the investment strategy for the specific property or portfolio?
How is the investment structured and what are my potential returns?
What is the timeline for the investment and expected exit strategy?
How will capital be raised and how will investor funds be used?
What is the risk profile of the investment and how is risk being managed?
Who will be responsible for managing the property and what is their experience?
What is the plan for addressing potential challenges or market downturns?
How will distributions and profits be allocated and paid to investors?
What is the fee structure for the syndicator and any other third-party providers?
What is the current market demand for the specific property type and location?
Are there any potential liabilities or concerns that the syndicator is aware of?
It is important to thoroughly research the investment opportunity and the syndicator, and to consult with a financial advisor before making any investment decisions.