If you have never done a deal before, then you will probably need all $10M as the lender will want the sponsor to have a track record.

My company is a sponsor at the GOREIA, so we are there every month and I also go to smaller ones in the area monthly. 

There are a few definite rules I follow when evaluating deals, as well as vetting sponsors/GP’s.

if you do not have US citizenship, a green card, or a visa, make sure that if you are seeking financing that you either have a US co-sponsor or your lender can lend to foreign nationals.

Kudos to the sponsors that are being transparent but many sponsors are not, and continue to provide the "we are not distressed" messaging up until the day that they send a capital call request to investors.

Don't get me wrong, these come with their own challenges, such as the high minimum investment ($50-100K, although that's also about how much you'll need to buy a rental), and the difficulty in finding reputable sponsors.

So if the sponsor bought a deal 8 months ago, they should know what they projected for month 8 in their underwriting.  

Invest with sponsors who perform proper diligence and underwriting and perform extensive diligence yourself on the opportunity and sponsor. 

Are you looking to deploy the 200-250K into syndications run by other sponsors? 

My business partner and I plan to fund around 35% of each deal as sponsor/GP, and will raise the rest from our LP's.