Syndication Returns Analysis

[Abhishek Nayani]

Hi all,

I've been mostly invested in stocks / ETFs so far and only recently been approached by a friend looking for LPs in a syndication deal. Looking at the IRR of 13%, it's seems to be almost equivalent to average expected stock market returns and that's what caught my interest.

Does the above projections look correct? Is there something else that I should be wary of?

Regards,

Abhi.

[Steve S.]

@Abhishek Nayani It sounds like you are new to syndication investing. The first thing you should do is educate yourself on this investment class. There are so many things you should be looking at before getting drawn in by the potential return metrics. Start off by reading some books like The Hands-Off Investor by Brian Burke and Passive Investing Made Simple by Anthony Vicino and Gino Barbaro. There are plenty of podcasts on passive investing as well. I think another key to not getting involved with sub-par sponsors is to join a community of passive investors. Learning from other investors' experiences can save you hundreds of thousands of dollars. I made so many mistakes early in my syndication investing that I wrote a short book about it. DM me and I'll guide you to more resources.