All Forum Posts by: Kevin Anton

Hi Kevin-

Great question and congratulations on getting started on syndication investing.

As you asked, I think finding an experienced mentor is a must and some great suggestions were given from this community.

That being said, I also recommend that you inform yourself so that as you are talking with your mentor and evaluating opportunities you personally can ask informed questions and know what good responses look like.

Some things to consider:

1. Understanding terms commonly used (Cap rate, Net Operating Income)

2. Sources and Uses and Profit and Loss Statements

3. Proforma and Operating Projections

4. Carried Interest/Waterfall/Compensation Models

5. Fees-are they common and in typical range?

6. Legal-is it convoluted? 

7. How to evaluate a Sponsor

8. How to evaluate the pro forma or projections, fees and company and operating agreements

I guess, in short, find a respected mentor but inform yourself so you are evaluating the information from what know to be reasonable as well in your own due diligence process.

To your success!

You need to watch them for a period of time to see if they are meeting their goals. Talk to people that have invested with them. There are a few people on BP that run syndications and I find completely trustworthy. Look for J Scott, Brandon Turner, Paul Moore, Matt Faircloth, or Brian Burke.

AJ Osborne is not on BP but he has written a top-selling book on self storage investing and runs a syndication that is highly recommended by others.