Quote from @Chris Seveney:
@Anish Koshy
There is a lot of information out there on how to do your proper due diligence on a syndication, including the sponsor. There has been a significant influx of deals which I’ve gone bad in the past 24 months. Which is not uncommon, what is uncommon is the number of inexperienced syndicator’s Who not only lost all the investors money, but some even fail to communicate the status of this indication. .
To start, understand the type of deal you want to be in. Do you want to be in a growth play which has higher risk and higher upside? or an income play which typically provides lower yield because they typically inherently have lower risk
Thanks Chris, very helpful. My risk profile is moderate - medium risk reward. Likely class A,B properties. My key goal is to get educated as well as identify sponsors with a consistent track record and good operators who underwrote and have operated properties well. In some ways, the recent churn is helping weed away the less diligent underwriters/operators.
