Updated over 8 years ago on . Most recent reply
Checking the Validity of an Investor Group?
Guys & Gals off all shapes and size of bank accounts,,, how do I check to see if an investor group is real and not some slick organization trying to steal money from investors? Thank you.
Most Popular Reply
@Account Closed I have syndicated over 1000+ apartment units and haven't ever had one of my investors ask for a bank statement. Not sure how helpful or relevant having a bank statement would be.
Instead, prospective investors do ask me for investor referrals, prior deals, understanding of my investment philosophy, why I target certain assets in certain markets, why I got in this business, and a host of other items.
Investors also want to know what happens after they wire funds such as how often do I communicate with property updates, financial and tax information, when will they receive cash flow checks, etc.
The bottom line is you need to feel comfortable that the operator/sponsor has the experience to run the type of deal you are looking to invest in. You also need to feel very comfortable that the operator is trustworthy and credible and trust isn't given it is to be earned.