Is investing in a syndication risky if the market changes?

[Josh Rogers]

Is investing in a syndication risky if the market changes?  I don't want to invest money for years in an apartment deal if there is a chance the market could change and leave the syndicator broke.  Any suggestions on this?

[Alina Trigub]

@Josh Rogers

Walking on the streets could be risky as well as one can be hit by a car! So, yes of course investing in syndications is risky. But as @Mike Dymski elegantly put it, if you do proper due diligence (DD) and evaluate (a) the deal sponsor, (b) the market, and (c) the overall offering itself, and all of it fits your preset criteria, then you're making your decision to invest based on the calculated risk. 

I think the most critical components to smart investing is to:

1) educate yourself on the syndication process

2) educate yourself on the asset classes

3) network and do the research to find the sponsor(s) to work with

4) read up on the DD to determine whether an offering works for you

Here're some blog posts to help you further your education:

https://www.biggerpockets.com/member-blogs/10850/84504-step-by-step-process-on-how-to-invest-in-a-real-estate-syndication

https://www.biggerpockets.com/member-blogs/10850/79257-deciphering-syndication-investment-terminology

https://www.biggerpockets.com/member-blogs/10850/78500-is-your-portfolio-at-risk-if-the-market-crashes

https://www.biggerpockets.com/member-blogs/10850/76728-questions-to-ask-a-syndicator