I’ll begin by saying I have no objective data to support my opinion, but I do have some subjective data, so take it for what it’s worth.I think the trouble is pretty widespread, particularly among newer syndicators (defining that by less than 10 years in the business, so never having survived an adverse cycle).  

Agents cannot accurately answer subjective questions with objective answers, so when will we stop expecting magically accurate ARVs?

Thus, I understand your objective on Bigger Pockets is not to learn more about REI or to help others on BP. 

And how can this objection be overcome for someone skeptical because of the delusional syndication deals that have taken place?

@Marci Stein Do you have any objective source that suggests soap or washer outflow is harmful to a sump pump?

For some, simply holding the portfolio you own and paying down the debt satisfies their investment objectives but someone like yourself who is looking to scale can't achieve that at the pace you may necessarily want if your real estate is stagnant on appreciation unless you have additional sources of cash you can throw at new acquisitions.

It would be great if more folks could provide responses to the survey to aid in discussion instead of just commenting on their objection to performance fees :-)

Your screening process must be objective and you need to provide your criteria within your advertisements. 

What’s the best way to overcome the objection.

People want their money now, they don’t want to wait for decades to realize their gains.It’s an understandable objection because the land banking strategy does take a long time to implement.