Hi Everyone! Looking to learn more about passive investing / syndicated lending . It seems like the typical minimum for investments are 100K. Are there credible syndicator that accept less than this amount if someone just wants to invest a smaller amount to “test the waters” ? Or is this a dive head first type of an investment ? Any advice is appreciated
There are many syndicators that stick with 50k minimums. We've done 50 and 25. Often times those minimums are less hard-and-fast than you might expect, what does it hurt to ask if they'd accept something lower? The worst thing they can say is no
I agree with @Taylor L. and we have investors who started with 50k or less. As a syndicator, you must establish a good relationship with them and once you built that trust, they would even jump on the next deal. So, most of the LPs investing for the first time tend to be conservative, unless they are someone from GP's network or they are repeat investors.
What amount are you looking to invest? And what sort of liquidity/investing horizon are you targeting for?
@Sherry Varg $50k minimum is pretty standard, but you'll sometimes see $25k or $100k. More rare is a higher number, say $500k-$1m, for Operators with a network of ultra-high net worth individuals/companies that want to limit the number of LPs per deal. Like Taylor said, if you're speaking with particular syndicators and considering investing, just ask about minimums, it's a common question.
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