FDIC Insured Funds / Syndications

[Chris Seveney]

One thing every investor needs to be aware of: No real estate fund or syndication is FDIC insured.

You may come across phrases like "the money is in an FDIC insured account," which only means the funds are held in a bank account, not under someone's mattress. This does not mean your investment is insured.

We often hear comments like, "We invested with XYZ because their fund / syndication is FDIC insured," (nope no its not...).

To avoid these kinds of mistakes, I strongly recommend you always have an attorney review the Private Placement Memorandum (PPM) with you. It's surprising how often investors overlook this critical step.