Professionalism difference: Syndicators vs. Turnkey/PMs

[Andrey Y.]

There seems to be a difference between the level of professionalism (communication, promptness, clarity, responsiveness, etc.) between the sponsor of a syndication project versus a Turnkey provider or their PMs.

I suspect there are many easy to see (and some hard to see) reasons for this, but I want to open the discussion. First off, the syndication sponsors I have worked with seem to be more prompt and personable individuals. Emails are typically replied to within 24-48 hours, and they get stuff done. Without me having to ask them the same thing for weeks at a time. There are exceptions as some Turnkey outfits are not bad, but there is a difference for sure.

I have two out of state "Turnkey-type" investments (one an individually owned property, same for the other except in a self-directed IRA). It seems like the folks are nice enough, but it takes a longer time to clear up what is going on. It usually takes multiple phone calls. However, with the 3 private placement sponsors I have invested with in many deals (soon to be 5), there is an air of professionalism that is palpable.

What is your experience? What has your experience been with Turnkey providers? Managing the property manager? Sponsors of equity investments? Would love to hear your thoughts.

[Kris Benson]

@Brian Burke makes a great point.  I only have experience on the syndication side of things but the reputation of a operator is what allows us to scale.

Websites like BP bring a level of transparency to the real estate investing marketplace that will only improve in the coming years.  Crowdsourcing of due diligence with groups like @Ian Ippolito forces operators to deliver or their reputation will keep groups/investors from reinvesting.

I don't think its syndication vs turnkey, I think its the quality of the business/people you are dealing with.  If I am willing to send you my money and I can't get a response in a timely manner BEFORE I invest in a project what do you think will happen if something goes wrong in the project?  

As a passive investor your success is completely tied to the quality of the operator no matter turnkey investing or syndication.  If your gut is telling you something about the person you are dealing with you are probably right......

Kris