Questions to ask when investing as a LP on a multi family

[Reden Dionisio]

Understanding that each deal is uniquely different from another, but looking get some guidance on what the average ROI, CoC, cap rate would be?

What are some questions to ask as an LP in the deal?

[Rick Martin]

@Reden Dionisio if you are looking for what you can expect to earn by investing in a syndication, we had a discussion on that here:https://www.biggerpockets.com/...

There are so many questions to ask, so @Israel Garavito makes a good suggestion to ready Brian Burke's book. 

Here are a couple anyway.

The usuals are what's your track record? How many deals exited? Do you have references? How is the communication? Will there be mostly updates? Have your investors every lost money?

When you get deal specific, you want to ask if there is a pref, and it so, does it accrue? Is there a waterfall (where the equity split changes), and if so, you want to see how near or how far it is from the targeted IRR. Also, check to see if there is a refinance included in the underwriting. Refinancing carries a lot of uncertainty. Who really knows what interest rates will be in three years. If there is a return "of" capital, find out how that could impact your shares, if at all. It should not.

Really there are so many questions to ask, you could write a book on the topic, and luckily somebody has.