💸 5 Questions to Ask Before Wiring $100K to a Syndicator

🧠 Before You Click “Send”…

Real estate syndications often require minimum investments of $50K–$100K+. Once that money is wired, you’re committed. So before you invest, take a few minutes to ask these five non-negotiable questions:

1. 🧾 How much of your own money are you putting in?

Why it matters:
When sponsors co-invest, their financial interests are aligned with yours. If they aren’t risking any of their own capital, they might not be as motivated to protect yours.

What to look for:

• A sponsor investing 5–10% of the total equity

• A statement in the offering memorandum showing their contribution

2. 🏗️ How many deals have you taken full-cycle?

Why it matters:
Experience closing deals is one thing—experience operating, exiting, and delivering projected returns is another.

What to look for:

• At least 1–2 full-cycle deals

• A clear track record of performance and investor payouts

3. 📬 What’s your communication plan during the hold period?

Why it matters:
Investors shouldn’t be left in the dark. Ongoing updates build trust and provide insight into how the project is tracking against projections.

What to look for:

• Monthly or quarterly email updates

• Financial summaries with key performance indicators

• Access to a dashboard or point of contact

4. 🔍 How did you stress test this deal?

Why it matters:
Markets fluctuate. You need to know the plan works not just in best-case scenarios, but in realistic or even adverse conditions.

What to look for:

• Conservative rent growth assumptions

• Higher-than-average interest rate scenarios

• A break-even occupancy analysis

5. 🏢 Do you manage the property in-house or outsource?

Why it matters:
In-house management often means more control and tighter alignment with the business plan. Third-party management introduces another layer of risk and communication.

What to look for:

• A management team familiar with the property type

• A track record of successfully operating similar properties

• Defined policies for leasing, maintenance, and tenant relations

🧠 Summary

Before wiring a large investment, always ask:

• How much is the sponsor investing?

• Do they have full-cycle experience?

• Will I receive consistent, transparent updates?

• Is the deal stress-tested?

• Who’s managing the property?

Asking these five questions could be the difference between a successful investment—and a lesson learned the hard way.

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