Value add syndication deal

[M Shah]

Has anyone worked with Three Pillars Capital Group before?

How do you evaluate a value-add multi family syndication deal? What parameters to consider?

Does 8% preferred return, 70-30 split waterfall model, 20-22% IRR sound like a good deal?

The risk factors are very extensive and scary, is that more of a boilerplate or whether any red flag I should look for?

[Todd Dexheimer]

I would say a 20-20% IRR sounds very aggressive in this market, which would make me be very cautious on that deal. The best think you can do is actually get to know the sponsorship group. Use this deal as something to start the conversation with them and maybe even tour the property with them after they close. I would make sure you have looked at dozens of deals and talked with 3-5 sponsors before you invest passively.