Syndication Experience for the little guy?

[Dave E.]

I was recently invited to participate in a syndication deal for a very large commercial project. Numbers look great etc. Minimum buy in is $75k, which is a stretch for me, but I can get there. My experience so far is two SFR currently under my belt, and a third under contract. So this is a big leap for me, but the numbers check out, so I am very interested.

There are obviously people that will be investing much larger sums into this deal. I have a business partner/friend that may jump in with me, but it would only push our investment to $100k which will still be at the bottom of the pile in this deal I’m sure.

My question is, are there any disadvantages of being the little guy with the just minimum buy in amount? Or does it really matter?

[Josh Walker]

@Dave E. - @Jaysen Medhurst nailed it ... there is no such thing as a good deal with a bad sponsor.  Vet the heck out of them and get to know them personally.  

There is no disadvantage to being at or near the minimum investment.  You could even view this as a potential advantage as you are aligning your $75k with others' larger investments.  That being said - people throw good money at bad deals every day.  

I've personally invested in almost 40 separate deals and love discussing syndications with anyone wanting to learn more about them.  I would focus on defining your goals.  Cash flow? Long term wealth? (can be both) Higher risk with higher upside? Etc.  

Certain asset types lend themselves to these in different ways.  You also want to take a hard look at the market and how stable it is.  After all of that ... dig into the deal. 

If you want to discuss further shot me a PM.  I wish you luck!