The success of a syndication relies heavily on who your sponsor team is. Whenever you have identified a deal that fits your investment goals you should set up a call to talk to the sponsor team and ask them these 2 questions:
1 – What can go wrong in this deal?
Every deal has some potential risks, as small as they may be, you want your sponsor to acknowledge them and have taken appropriate measures to mitigate.
2 – Tell me about a deal that went wrong and what can you do about it?
If the sponsor has been doing this for a while I can guarantee you that he or she has had things not go as planned. You are mainly looking for a sponsor who can be honest and tell you something that went wrong, the important part here is to see if they took appropriate action to ensure that same mistake did not happen again in the future.
Nobody is perfect, mistakes will happen, just ensure you are partnering with the syndication team that you trust that can be resilient and will solve problems the adequate way and not blame others for mistakes.
If you want to know more go to my website and download my FREE eBook on creating wealth through apartment syndications. www.DeepSeaEquities.com
To your success,
Satch Bernhardt
