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.
@Jason Merchey whether it is a gardener, cleaning lady, plumber or dentist. Don't engage anyone without reference checking. Those that do not provide them just don't get engaged-anyone providing goods or services expects that.
@Jason Merchey those are red flags that shouldn't go unnoticed. Sounds like you need to move onto the next best qualifier
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.