How to Identify Red Flags in a Syndication Deal as a Limited Partner | Bigger Pockets Video
How to Identify Red Flags in a Syndication Deal as a Limited Partner | Real Estate Investing Tips 🚩🏠
Are you considering investing as a limited partner in a real estate syndication deal? Before diving in, it's crucial to spot potential red flags that could jeopardize your investment! In this video, Jim Pfeifer and
Stacey Stegenga break down the most important warning signs to watch for, including lack of transparency, poor track records, high fees, and more. Learn how to protect your investment and make smarter decisions as a passive investor. Whether you're new to real estate syndications or a seasoned investor, this guide will help you evaluate opportunities with confidence.
🔍 Key Topics Covered:
• Red flags in real estate syndication deals
• What to look for as a limited partner
• Questions to ask syndicators
• Tips for protecting your investment
• How to avoid common mistakes in syndication
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The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgement and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential or other damages arising out of reliance on information and advertisements presented in this podcast.
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Avoiding Rookie Errors as a Left Field Investor: 20 Lessons Learned From 14 Years of Passive Investing in Private Syndications by Steve Suh
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00:18 Introduction to passive pockets.
00:54 Jim introduces Stacey
01:15 Stacey tells us about her portfolio strategy.
06:53 Stacey tells us what issues contributed to the bad deal.
06:58 Stacey talks about investors having skin in the game and how it becomes a problem.
08:29 Stacey talks about how easy it is to accidentally commit contract fraud.
10:35 How Stacey discovered the Red Flags in the deal.
12:09 How Stacey knew the deal was falling apart.
14:51 Jim talks about mandatory capital calls in the agreement.
16:42 Stacey tells how she found out there were more investors in the deal.
17:32 Stacey talks about things you can push back on with the Operator.
18:40 Stacey discusses if they voted out their manager in the deal and how they came to that decision.
19:40 Jim asks Stacey how the deal ended.
20:20 Stacey emphasizes the importance of displaying imperfect Syndication deals.
20:47 Jim talks about how we learn more from mistakes.
21:08 Stacey explains the process of swapping equity in lost deals.
22:14 Stacey tells LP’s what to do if they find themselves in a bad deal.
22:51 Stacey describes what changes she will make in future deals in vetting operators.
24:58 Jim emphasizes the importance of knowing Operator’s track records before deals.
