Any recommendations for Syndication Investing Groups?

Question

Anyone have personal experience with a syndication investment group they’d recommend?

Otis Drinkard · Answer

@Beth Watson

No, and I am not sure why. I understand syndicators are not allowed to advertise. But not sure why LPs are not talking about their syndicators. I stalk BP postings using the keyword syndication, but I tend to find only the established syndicators not the young upstarts that I am looking for. ￼￼I like your idea, and hope someone picks it up and runs with it. Cheers

Otis

Account Closed · Answer

@Beth Watson, I personally know @Vinay Kolluru and highly recommend his advice - he has a lot of experience in syndications and understands how to evaluate the underwriting and risk in a deal.

Nicole W. · Answer

@Vinay Kolluru Thanks so much

@Beth Watson  Hi, Beth. I was looking for the same. I finally asked around and my lawyer and his family invested with https://imgre.com/a few times. All their dealings were successful and he is very happy with them. I recently invested with them off his recommendation and of course after doing my due diligence on the opportunity. I am an accredited investor so you must have that status to invest with them. Their minimum was lower than quite a few I have seen. I hope this helps. I don't work for them.

Vinay Kolluru · Answer

@Nicole W.

I only invest into syndications where the General Partners are investing money themselves. After all, if it's such a good deal, the GPs should be investing, right? I will PM you with more details.

Otis Drinkard · Answer

@Lane Kawaoka

True, but I don’t see a huge difference from contacting the syndicator and asking for there investor references. At least this way you can possibly get differing opinions when performing background due diligence.

Lane Kawaoka · Answer

@Otis Drinkard syndications posing as LPs. Think of Amazon reviews gone bad.

Nicole W. · Answer

@ Steve S Thanks so much. This answers my question.

Steve S. · Answer

@Nicole W. I am now completely passive in my real estate investing. You are correct in that many syndicators will have add-on co-GPs who essentially raise capital for their deals. As you know, there definitely is an advantage to being a co-GP as your income would much higher than as an LP.  It does become harder to vet all the sponsors when there are 8 vs. 2 people. I have invested in some syndications that have this setup and have been happy with them so far. But I try to steer away from deals with too many GPs.

Nicole W. · Answer

@Vinay Kolluru Hi. I have been in the buy/hold arena directly for awhile and have my rentals. I am looking at getting into passive investing. While researching this I am finding companies to invest in that are sponsers themselves and then a few investing groups who state they vet the sponsers and you invest with the investing group vs directly with the sponser company. It looks to me that the investing group is a broker for the actual sponser. I am trying to understand the different functions and how the investment group gets paid for this. Is the investor like myself paying a commission or does the sponser pay them? What is the advantage for the broker? I saw one investing group where the owner in a podcast is stating that he is the main contact and will inform you of the progress of the sponser instead of you hearing it directly from the sponser or logging into the sponser's site to see your distributions etc. I am newer to this and would like to know about this. It seems to me that I would then have to be vetting both the investing group AND the sponsers. Is there some benefit that I am not seeing besides that investing group is very experienced in vetting sponsers and that is where I could possibly trip and lose money?

Vinay Kolluru · Answer

@Beth Watson I have a good deal of experience with passive investing in low risk syndications (I hate risk). Feel free to PM me and I can share more details.

Any recommendations for Syndication Investing Groups?

Most Popular Reply