I am looking to start my realestate investment portfolio with investing in apartment syndication programs as I have a full time job and passive income is my only real option at the moment.  My goal is to talk to 4-5 different companies to see which ones I mesh with the best. There are a lot of companies out there.  I would like to get some input from the people on this forum to get their opinions on ones they have had good outcomes with and others that they wouldn't invest with again. 

@Zachary Miller

I wrote a guide on vetting sponsors; if you are interested, DM ME.

What is your expectations from the company that you decide to go with? 

@joe lewis Since I am just starting out the most important things for me are the following: 1) Experience 2) How many of their investors have invested in multiple assets 3) Location of a bulk of their portfolio 4) Pay out schedule 5) Transparency - Updates, communication, etc?

Originally posted by @Zachary Miller :

I am looking to start my realestate investment portfolio with investing in apartment syndication programs as I have a full time job and passive income is my only real option at the moment.  My goal is to talk to 4-5 different companies to see which ones I mesh with the best. There are a lot of companies out there.  I would like to get some input from the people on this forum to get their opinions on ones they have had good outcomes with and others that they wouldn't invest with again. 

There are many ways to do due diligence, and no one right way to do it. Also, every investor has a different risk tolerance, financial situation and has different financial goals. So, in my opinion there's no one sponsor that's a good fit for everyone.

Having said that, as a conservative investor I'm very picky. So I've had to talk with a lot more than just 4-5 companies to find one that I meshed best with. Typically I look at more than 100 deals in a month and at the end of the year only invest in a handful.

For multi family I personally require at least one full real estate cycle of experience with little to no money lost, low leverage (for value-added, 65% LTV or less), reasonable skin in the game (at least 5% and preferably 10%) and reasonable fees.

On the other hand if you are more aggressive than you will probably find many sponsors that look good to you. Good luck.

 

@Zachary Miller When I invest as an LP, I always look for conservative underwriting and alignment of interests.  DM me if you want more details/ blog post links.

And I also want transparency and communication throughout the whole process.  For me as an LP, the GP really can't over-communicate.  As an engineer, I love seeing the number and progress.