Syndicate investing out of state

[Merv Screeton]

I live in California but am interested in investing in Texas. What is the consensus on investing with apartment syndicators for out of state exposure? Any advice? 

[Mike Dymski]

One of the benefits of investing in syndications is the ability to get geographic and asset class diversity; so, it certainly helps achieve your goal.  I would recommend considering multiple asset classes.

Vet the sponsor and learn how to analyze an offering memorandum.  I have a (non-development) deal in front of me right now where the sponsor does not provide transparency on the splits because they are taking 80% of the deal (and, to boot, it's a new asset class for them).  Great acquisition, poor transparency and trust.  Pigs get fat...hogs get slaughtered.