References: Too Much of an Imposition, or What?

4 Replies

I did a fair amount of due diligence on some North Carolina based syndicators, fairly new to the business. Their first deal is going okay so far, but not great. 
I asked to speak to references, both on their prior deal and the current one I am considering. 
They said it was an unusual request, and it took two requests to get their response. 
The response was something like "Well, I will see if we can find a person or two who will jump on a call with you for a few minues." I felt kinda put off. 

They also won't give refs for folks who are in on their current deal.

Any feedback on this? Am I expecting too much ? 

Are they being cagey and trying to hide something? 

I kind of doubt they think I am a tire-kicker. Maybe they even feel I am obsessed with asking them questions.

I'd like your feedback please. 

@Jason Merchey you are absolutely doing the right thing asking for references and doing thorough due diligence.

Any professional and successful syndicatior would welcome this request and have a list ready for you.

Sounds like you need to look elsewhere. There are plenty of top notch professionals with successful track records for you to invest with.

Thank you all - 

I did in fact tell the syndicators that I think it best that I wait for at least one more of their investments to sink or swim. That is, investment #2. Maybe in a year they will have more of a track record and they will be better able to demonstrate effectiveness and transparency. I appreciated that they took the time to meet with me in person and have an hour-long phone call with me (i'm in Charleston and they are four hours away). Nice enough guys. Probably just a bit too much of a "yellow light" and I always prefer "green" when placing my money on the line. 

Back to the drawing board.