@James Thiel  You'd need to take a good look at the PPM and ask the syndicator precisely how your returns work. 

Assuming you didn't advertise the deal and that your investors are all accredited investors (as designated via a signed investor questionnaire and subscription agreement, you can get away with not preparing and filing a private placement memorandum (PPM). 

Hello Josh, As you know, syndications are considered private placements and are monitored by the SEC.

Offerings relying on the general exemption for private placement will only attract small unaccredited investors investing smaller amounts, if at all.

The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

My goals are to build a fund of private placements but outside of mobile homes & lease to own partnerships the opportunities are not what they were 5-7 years ago when I was starting my Oklahoma-Texas based fund.

There isn't much case law on series LLC's yet so this is why we didn't select the series LLC option.All the deals I've ever syndicated we created a private placement memorandum (PPM) and registered it with the SEC.

If they don't, it's your loss, not theirs.Versus the standard turnkey method which is-- all that rehabbing and tenant placement stuff is done prior to you closing, meaning the turnkey seller is the one holding the risk. 

The risks associated with improper tenant placement are high, and you could save yourself a difficult lesson by ensuring it's handled correctly from the start.

@Will Barnard That is precisely the point... the risk for $10,000 (apparently pre tax profit) is significant.