Choosing a Syndication to Invest in as an LP : Syndication Comparison Tool/Calculator

[Ian Noble]

Hi All,

I have been passively investing as an LP in syndications for about 6 months. There are many out there now and I have been looking for a tool that would help me compare a few of them side by side based on criteria given by the syndicator and my initial investment amount. The plan is to create an Excel sheet where I could plug the basics into a formula and it would give me a side-by-side view of how the investment looks with each fund option. 

I aim to have it show the impact of K1 losses if the syndication offers it, and that tool is helpful because some of the comparisons will show a real estate syndication vs mortgage notes or debt funds that may not offer the same tax advantages/losses.

I've included some of the criteria I was putting on the Excel calculation below. The thought was for the first 10 lines to be filled out for two deals side by side to show which investment was most suitable and the return throughout the deal. Data after line 10 would be calculations only and no need to input data since they are formula-driven.

I am happy to share once complete but also wanted to poll other passive investors out there to see if they have a similar tool they use to look at two different style syndication deals side by side OR if you feel any criteria should be added to the list below.

Thanks in advance.

Initial Investment

Length of Investment (Years)

Shares Class A Preferred Return %

LP Profit Split Class A

Waterfall (Y/N)

Waterfall Details

Reinvest Earnings Option (Y/N)

Physical Real Estate or Note Only

Refinance Projection (Year)

K1 Loss (Y/N)

Yearly Interest Earnings

Performance

Average Annual Return

IRR

Refinance Return of Initial Investment

Year 1 Tax Loss Effect

Net Return (by Year)

Total Return on Initial Investment