The Three MOST Important Requirements for Investing in a Syndicated Offering

[Don Konipol]

Disclosure: I syndicate real estate deals AND invest in other syndicators deals.

Here are the three most important requirements imo.

1. Experience of syndicator/manager with the particular subject property type

2. Alignment of syndicators interest with investors interest - bulk of syndicators “profit” tied to success of investment

3. Syndicators personal capital invested at same terms as investors capital 

For those of you who invest in syndicated offerings, what’s most important to you? 

[Jay Hinrichs]

Agreed with alignment of interest.

when I work with investors we all get paid the same day.. I do not take anything up front and I get paid the same day the investor gets paid.. So my motivation is a pay day  the investors motivation is a pay day..  thats alignment of interest. 

Now to be fair I understand most syndicators cannot do it this way they have expenses up front they want covered. I have expenses as well but i pay for my expenses out of pocket and if we are successful I get paid back and my profit..