Rental Property Investor · Dallas, TX · Member since 2016 · 261 posts · 170 votes
5y
@Troy Zimmerman it may sound cool to have $1B in assets under management, but that doesn't tell you much of anything about the sponsor and what returns you can expect. Whoever you talk to, ask them how many of their deals they have sold and what their average hold period and IRR to investors is. Then, ask them about their worst deal and what that IRR was and find out what went wrong. Focus on evaluating the sponsor and their background thoroughly. A sponsor and their values/character is MUCH more important than the deal itself.
Rental Property Investor · Indianapolis, IN · Member since 2016 · 559 posts · 463 votes
5y
Hi @Troy Zimmerman, there are a lot of forums on this. You'll start seeing some trends and be able to sort out the top operators in each geography, good luck!
Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
5y
I agree with @Account Closed. Mark and Tamiel Kenney are very experienced syndicators and have a large portfolio. Mark is closing deals every month, so you can't go wrong.
In general, make sure you vet your sponsor to make sure you are a good fit. Try asking them about their experience, assets under management, and see if you get along with them. Investing in a syndication deal is like a marriage, and you're in it for the long haul. So, make sure you like the person!
PM me if you have any questions about investing in a syndication deal or how to vet a sponsor.
Rental Property Investor · Dallas, TX · Member since 2016 · 261 posts · 170 votes
5y
@Troy Zimmerman it may sound cool to have $1B in assets under management, but that doesn't tell you much of anything about the sponsor and what returns you can expect. Whoever you talk to, ask them how many of their deals they have sold and what their average hold period and IRR to investors is. Then, ask them about their worst deal and what that IRR was and find out what went wrong. Focus on evaluating the sponsor and their background thoroughly. A sponsor and their values/character is MUCH more important than the deal itself.
Investor · Cleveland, OH · Member since 2019 · 147 posts · 156 votes
5y
I'm a syndicator myself and know a few that are smaller ( like me) and larger (not me lol). I think first decide if you want to work with someone smaller and more personal (although might not have as much experience), or someone larger and less personal, but probably has much more experience. There's good and bad operators in both groups IMO, but depends what you are really looking for as an investor in the relationship. Then reach out and have some conversations about their past deals and talk to some other investors that work with the people you're considering as they probably won't be untruthful in their experience.
Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
5y
@Troy Zimmerman. Great question. I recommend you go on a website that reviews syndicators. Investors can go there and rate plus comment on the experiences they’ve had. It was developed by a tech guy, Ian Ippolito, who sold his company and was looking for reviews and ratings he could trust. It’s called The Real Estate Crowdfunding Review. Good luck!
Investor · Memphis, TN · Member since 2016 · 279 posts · 257 votes
5y
@Troy Zimmerman As an active and passive investor- Yes, lots of experience with syndicators who are active here on BP. Who or what types of syndications are you searching for?
Investor · Castle Rock, CO · Member since 2018 · 297 posts · 159 votes
4y
@Bob Smith there are a lot of syndicators out there these days. Make sure you take your time and get to know the team and make sure the business plan makes sense.