Preventing Real Estate Syndication Failures: Lessons from the Frontlines

[Jeff Tumbarello]

Some basic things to factor in:

Who is the syndicator?

You are giving up control to this person

Fixed-rate debt or at least rate caps?

Does the syndicator have skin in the game?

Who holds the funds?

Do the rents match what you can find in the area?

Does this venture appear guru inspired?

Who does the management?

Do expenses seem legit?

Do they trend the expenses to go up? 

Do they have a vacancy factor?