What to look for before investing in Apartment Syndication

As a passive investor — exactly as it sounds, you would expect ZERO effort to do on your part, correct? 

Not totally true, as a passive investor, you are and should put in effort in the beginning to vet out the following key items:

  1. Find a solid team to invest with.
  2. Get to know the market the deal is located in.
  3. Get to know the property (location, condition, renovation status)
  4. Understand the financing (type of loans and rate), debt service/structure vs income of the property.
  5. Review and understand the business plan, make sure it makes sense. 
  6. Know the exit plan for the property. 
  7. Educate yourself on how the projected returns were calculated.
  8. Verify the sponsor team has planned for the “worst-case scenario”

It’s critical to invest time in the beginning before subscribing to any deals.