Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

User Stats

3
Posts
0
Votes
James Lopes
0
Votes |
3
Posts

How to evaluate a syndication

James Lopes
Posted

For those of you that do syndicates, what criteria do you use to evaluate the offerings. For example here is one that I am considering off Crowdstreet- looks reasonable to me but this would be my first time doing it so curious what red flags to look out for. After i get my feet wet i will turn to MFH but i need to get my wife to ease into it...

any advice would be greatly appreciated

thanks all

Most Popular Reply

User Stats

186
Posts
188
Votes
Brian Alfaro
  • Multifamily Syndicator
  • Houston, TX
188
Votes |
186
Posts
Brian Alfaro
  • Multifamily Syndicator
  • Houston, TX
Replied

I agree with @Taylor L. Track record is something you definitely want to look into. The numbers being advertised are used as click-bait - focus on the property and the sponsors running it. You have to dig into the pro-forma and ask the lead sponsor questions to get a feel for their business plan. Right now some big questions would be:

-  Do those numbers include projected rent growth? If so, what year does the rent growth begin?

- Do those numbers include 6-12 months of PITI or OpEx reserves? A lot of lenders are requiring this right now due to COVID.

- Ask about the capital stack and the split. Is it 80/20, 70/30? Is there a preferred return so investors get paid first? 

- What type of fees are the sponsors taking? 

- How has the property performed during COVID? How was it performing prior to COVID? 

The list of things to look for is long, but those are some good ones to start. 

Loading replies...