What experience, ability and capacity does the syndicator have to manage the asset IF THINGS GO SOUTH?

This is very different skill than managing an asset that performs profitably.

1. Has the syndicator successfully handled negative investment situations before? 

2. Is the syndicator able to MITIGATE losses in multiple ways

3. Does the syndicator have pre existing relationships with lenders who are willing to “cut some slack” if things get tough?

4. Does the syndicator have pre existing relationships with capital providers that can invest capital for equity to try to salvage some of the investors capital in a bad situation.

5. Is the syndicator financially strong enough and willing to advance their own capital in a crisis situation rather than waiting to collect the proceeds of a capital call? 

If the answer is no to these questions, you have unlimited downside risk.  If you’re worried at all about downside, invest in self managed, publicly traded, low debt REITs instead.  I say that and I’ve been a syndicator for almost 30 years having completed over 300 syndications.