How to Select a Real Estate Syndication Sponsor

In this week’s episode of Requity Insights, we explore the topic of selecting the ideal sponsor for your commercial real estate syndication investment. For passive investors, it’s vital to meticulously assess the sponsor’s track record and qualifications before committing capital. Join us as we explore key considerations like asset expertise, deal execution success, performance history, market familiarity, and investor communication. We’ll uncover the significance of comprehending investment and exit strategies, including experience, assumptions, and past performance. Our journey also uncovers the distribution waterfall, dictating capital sharing among sponsors and investors. From acquisition to promote fees, we dissect the compensation structure. Our focus remains on aligning sponsor and investor interests. Don’t miss this revealing episode that could avert costly mistakes.

How to Select a Real Estate Syndication Sponsor

0:50 Track record of the sponsor (GP)
2:20 Sponsors communication cadence
2:40 Understanding the sponsors deal assumptions and investment and exit strategy
4:18 Questions to ask the sponsor about the specific deal they are syndicating
4:48 The distribution waterfall
7:15 Questions to ask the GP about the deal structure, fees, and distributions
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