5 Key Communications You SHOULD Receive In A Syndication

[Justin Goodin]

There are 5 key communications you should receive at important intervals once you invest in a real estate syndication. From the closing date, through the hold period, until the asset sale, here’s what to look for:

• Investor Guide – upon closing
• Progress updates – monthly
• Cash flow distributions – either monthly or quarterly
• Financial reports – quarterly
• Schedule K-1 – annually

Your active participation in a real estate syndication is complete once you’ve reviewed the investment summary, signed the PPM (private placement memorandum), and sent in your funds.

Once all investor funds have been submitted and the deal closes, the sponsor team begins executing the business plan through renovations, property improvements, and increasing rent and occupation rates among other things.

Make sure you are vetting the sponsor correctly on your next passive real estate investment. Similar to how a child’s sponsor receives regular updates about their life from afar, these key communications help keep you in the loop throughout the lifecycle of your real estate syndication investment.