Redmond, WA · Member since 2014 · 22 posts · 2 votes
Hello, I'm considering investing in a syndicate as a limited partner. The syndicate isnt too big, ~20-30 people for ~$6 million property.
I've received and reviewed all of the documents - the PPM, company agreement, etc, and it seems OK.
One question I had though, is how common is it for people to have a lawyer review the documents more in depth? Is there much value in it? My impression is, for a syndicate, the managers are basically in control and you have to trust them to do the right thing - and outside of a lawyer just telling me what the docs say, I dont know if there is much protection or help they could provide.
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
9y
It depends on how much experience you have and how well you understand the language of the PPM. Are you clear on the compensation structure? Are you clear on your rights if the sponsor does not perform? You won't be able to change anything on the PPM. The sponsors will just go to someone else if you're not happy with how it is structured. But at the very least you should be happy with how it is structured.
Investor · Ottawa, Ontario · Member since 2017 · 145 posts · 52 votes
9y
If I'm looking at a 200K-300K investment as a limited partner, I'm getting a lawyer to read it for sure. It'll cost a few hundred bucks to review the document.