How do I vet a Syndication Investment Company?

How do I vet a Syndication Investment Company?

San Jose, CA · Member since 2016 · 58 posts · 19 votes

I attended a webinar last night in the fundamentals for investing in multi-family, where I learned a bit more about syndication.  I'm comfortable with the idea of being an investor this way, and I understand I'd be less in control than if I chose a different route.  

However, the presenter of the seminar works for a company I never heard of, and I can't find any reviews online or much discussion on syndication companies through BP. 

So how would I go about vetting such a company, before I sit down with them?  What are some questions you'd want to ask a syndication investment company? 

I don't know if it's kosher to post websites, so if you want to know what I'm talking about, please send me a PM.  

Thanks for reading. 

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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
10y

@Brian Burke had posted a very good synopsis to this very question not than long ago.  Perhaps he can easily find the link and paste it here.

See this reply in the discussion

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  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    Google search the company name, then the names of those that spoke for, own or made presentation.  Another effective search is "review $companyName$" or "review $personalName$".

    Then follow wherever that leads...

  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    10y

    @Brian Burke had posted a very good synopsis to this very question not than long ago.  Perhaps he can easily find the link and paste it here.

  • Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes
    10y

    hi- you can take a look at my website, www.ArcherInvestors.com.  Please let me know if you need any help. Best- Leslie

  • Brian BurkePro Member
    Investor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
    10y

    @Roy N. is right, @Ricardo Meza, I did recently post about that.  In fact, I post about it a lot on BP and if you go into my profile you can find links to my forum posts and probably find a lot of posts I've made on the topic.

    I think that the post Roy was thinking of was a response I posted in this thread a couple of days ago:

    https://www.biggerpockets.com/forums/311/topics/272718-multifamily-passive-investing

    Hope that helps!

  • San Jose, CA · Member since 2016 · 58 posts · 19 votes
    10y

    Thank you @Roy N. for summoning @Brian Burke!  

    Thanks to Roy I've already started reading your posts Brian.  It does help explain a lot, and I appreciate your time.  I'm sure to have more questions after more learning.  

  • Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
    10y
    I would ask for references from investors who have participated in the syndicator's previous deals. Good luck.
  • Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes
    10y

    Hi again, Ricardo- I also wrote a book on the topic that you can pick up at Amazon, Cashing In Tax Free.  It goes over everything you need to know about evaluating syndicators, real estate offerings and advisors.  Best of luck!

  • Flipper/Rehabber · Myrtle Beach, SC · Member since 2014 · 95 posts · 35 votes
    10y

    @Ricardo Meza I would get ahold of the presenter and ask for a copy of an executive summery on some of his or her previous deals.  When it comes to taking investor money, investors want and deserve to know everything about the company and about the project so don't be afraid to ask!  

    Then once you get your hands on one analyze it and if you get stumped ask questions here on BP!

    Good Luck!

  • Sterling WhitePro Member
    Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes
    10y
    Originally posted by @Ricardo Meza:

    I attended a webinar last night in the fundamentals for investing in multi-family, where I learned a bit more about syndication.  I'm comfortable with the idea of being an investor this way, and I understand I'd be less in control than if I chose a different route.  

    However, the presenter of the seminar works for a company I never heard of, and I can't find any reviews online or much discussion on syndication companies through BP. 

    So how would I go about vetting such a company, before I sit down with them?  What are some questions you'd want to ask a syndication investment company? 

    I don't know if it's kosher to post websites, so if you want to know what I'm talking about, please send me a PM.  

    Thanks for reading. 

    You could start off by asking how many deals they have done. Or how long they have been in business? 

    If you are digging and not finding much information then that sounds like a concern. 

    Hope that helps and I wish you the best of luck Ricardo 

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