The importance of vetting LPs is getting lost in the current environment where so much scrutiny, particularly in forums such as BiggerPockets is placed on Syndicators.

Distressed syndicators aren't talking right now and LPs who haven't been seeing their expectations / promises from GPs met are.

At the same time, we know that our LPs will want us to have a system of preferred returns, promotes, etc. to ensure that we uphold their best interests and perform, and we'd like to charge a small amount for managing the entire deal.

Quote from @Stuart Udis: I’ve connected with a number of LPs through BiggerPockets and have found they generally fall into two categories.

Feel free to DM or comment on this, and I'll reach out to you ASAPWe are also looking for LPs.

Ultimately, this IS our fault as LPs. 

If you want to do JV deals with LPs, just make sure that you don't put too much valuations in sweat equities and present your success track record will help.

Deals are later portrayed as “their own” on websites or in marketing materials to raise capital for the next project.I personally know many LPs who were burned investing in syndications led by inexperienced GPs who followed this exact path.

I expect they'll be dealing with civil litigation for years over this, you can't produce an 80-100% loss for a bunch of wealthy LPs, doing things that weren't explicitly part of your investment presentation, without consequences.   

I have spoken with several FoFs groups that seemingly don't know enough to make them viable LPs, let alone able to vet multiple sponsors and industries to protect the assets of those they are raising for.