Do any investors do background checks on general partners?

[Lee Nestlerode]

Hi All,

I have been looking into investing in a apartment syndication. Do any investors run background checks on the general partners? If so who do you use?

Thanks.

[Jay Hinrichs]

Originally posted by @Sam Bates:

Lee,

I'm a general partner and recommend you do background checks on any GP you plan to invest with. If you have a personal relationship with the GP and know them well you may want to reconsider, but an average Joe from the street it's imperative.

I would also ask pointed questions regarding their financial and business history and see how they react to the questions. You are entrusting that person to steward your capital the best as they can and if they have questionable character or have limited to zero experience with large sums of capital or capital projects I would run.

Here is a list of 3 background check companies that are recommended for 2020.
https://www.business.com/categories/background-check-companies/

I find it somewhat amazing that investors will put a blue collar work force tenant through the wringer IE back ground credit etc etc all over can they pay 750 dollars of rent.. but investors will do no back ground on someone they hand 100k or more to  :)