EPISODE SUMMARY:
Today’s episode is a continuation of the discussion on syndications. Ron and Heather briefly recapped about syndication, how it works, what is private placement, roles of a general and limited partner, cap rates and all other different kinds of things you can do mostly with respect to apartment buildings.
When you are looking at a syndication deal, there are certain things you need to understand first before going through the structuring process. Tune in to this episode to learn more about it and some common important questions you should ask about the structure and the deal itself.
WHAT YOU’LL LEARN FROM THIS EPISODE
- When the deal is structured, how often and what type of reporting do you get?
- Understanding as to when you get paid.
- Understanding as to how long your money is gonna be in? Would it be on a short term, mid term or long term deal?
- Do syndicators guarantee returns?
- What are your options if your life’s circumstances change and you want to get out of the deal?
- Knowing how and when the Sponsors (General partners) make money.
- How important and indicative is the structuring of the payout of the Limited Partner?
- As far as the deal goes, how is it usually priced and is it comparable?
- Knowing and understanding the story and the shape of the property
- As a Limited Partner, what should you expect as a return in the first year?
- Understanding the rents that you are projecting in an area
- What are some deal structure points?
RESOURCES FROM THIS EPISODE
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