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TRUST, BUT VERIFY: HOW TO VET A SYNDICATOR

by | Feb 17, 2022 | 0 comments

 OWNING REAL ESTATE WITHOUT THE HEADACHE

So you believe that you need to invest in Real Estate…
You understand the value of diversification in your investment portfolio by real estate
investment……

That’s great, but what all does that entail?

For most, the thought of buying real estate and then operating and managing the
properties – tenants, toilets, and termites – might sound daunting and like a real
headache.

You might consider passive investment with an experienced real estate syndicator.
After researching and educating yourself about real estate syndications – if you feel they may be a good fit for your investment goals and lifestyle, how do you choose the right syndicator to partner with and invest your hard-earned money?

Well, you need to vet them.

The following report includes 4 ways to vet a syndicator.

THEY HAVE A TEAM & EVERYONE HAS A POSITION

How many people are on the team? Who is in charge?

You don’t necessarily need your syndicator to have a huge team. But if they have a
team of individuals, each having a specific responsibility, you can feel at ease that the
deal will go smoothly and know what they are doing.

Some key areas to look for dedicated team members are:
● Acquisitions
● Asset-Management
● Investor Relations
● Operations

How many deals have they done as a team/individual?

Obviously, it’s ideal to partner with a team that has years of experience and a solid track record. But every team starts somewhere, and I don’t think it’s necessarily a
deal-breaker to partner with a newly assembled team. Rule of thumb is, if at least one of the partners has some years and deals experience under their belt and the others have a track record in life, you’re good to go.

Arn Cenedella of Spark Investment Group has over four decades of real estate
investing experience to assist busy professionals and parents in creating passive
income to provide the income and time to create the life you want.

CHECK THEIR TRACK RECORD

DON’T JUST TRUST YOUR GUT…

Do your research and ask the tough questions to make sure they’ve done theirs!
More questions to ask:

● How many deals have they done as a team/individual?
● How aggressive/conservative is their underwriting style?
● How much capital have they raised and deployed to date?
● How many investors do they have in their syndication?
● What’s the average rate of return for their investments?
● What is their experience investing in the multifamily space?
● What is their experience investing in a particular market or sub-market?

JUST BECAUSE SOMEONE DOESN’T HAVE A TRACK RECORD AS AN
APARTMENT INVESTOR, DOESN’T MEAN THEY DON’T HAVE A TRACK RECORD
IN LIFE.

Consider their related or unrelated professional experience. What has their career
been? Do they have a track record of success? How have they dealt with difficult
situations?

DON’T TAKE THEIR WORD FOR IT

SHOW ME THE GOOD, BETTER, BEST

Ask them for the contact information of 3-4 of their current investors.
● One who has been in several deals with them
● One who is relatively new
● One who maybe they had to have a hard conversation with regarding their
investment

You want to hear the good, bad, and ugly in these conversations.

If your potential syndicator is transparent, you’ll get what you need from these
conversations.

THE PROOF IN THE PUDDING 

What information and financials can you expect to have access to? How will it be
delivered?

At Spark Investment Group, we provide our investors with a monthly property update
newsletter and quarterly financial reports. In addition, I am readily available with phone or email anytime you want to chat. One of the benefits of investing with Spark is easy and direct access to the Founder, Arn Cenedella. Building relationships with each and every investor is an important part of our program.

It isn’t just a snapshot, it is a comprehensive breakdown of all the financials for each
property.

You want your syndicator to be transparent in all things-good, bad, and ugly. As an LP
investor in numerous syndications, communication is very important to me. Even if the news is bad, I would rather know than before left in the dark. Over my forty plus years career in real estate, I have found clients appreciate honest and open communication.

THE TIME IS NOW

Ready to take action?
If you are looking to be a passive investor and would like to learn more about SPARK
Investment Group and if we are the right fit for you and your money.

Go to www.investwithspark.com and click on START YOUR INVESTING JOURNEY.
or contact us:
T: 650-575-6114
E: arn@investwithspark.com

We’re looking forward to getting to know you better and cultivating a relationship of
abundance with you.

LET’S START THE VETTING PROCESS.

To learn more about real estate investing and syndications, reach out to us at https://investwithspark.com/contact/ today!

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