The Wealth Elevator Syndication eCourse

Secrets of Syndications: Part 4

Video Notes

Vetting Sponsor (that you don’t know or don’t know anyone who knows them)

• Sponsor can be a really good marketer, but not a good syndicator
• The person you are speaking to on the phone is most likely the marketer, not the operator
• Don’t pester with annoying questions
• If they have all the time in the world for you it’s a red flag
• Before you call the sponsor, you should already know if you’re investing or not, by all the research you’ve done beforehand, and vetting through the network you’ve built around you, just calling for personal comfort
  • Sponsor should be asking the investor questions and vetting the investor
• Little value you can offer to a sponsor other than investing your money – and they can get that from anyone else
• It’s not an interview, it’s a discussion – learning the sponsor’s philosophy

LP Philosophy

• Trust: When it comes to work or financial decisions I prefer truth over someone that makes you feel good or tells you what you want to hear 110% of the time. 
• Lots of people out there can have nice personal marketing, website, social media, podcast, etc. (see this a lot lately in the stock trading world), where is that line of ‘healthy tension’ to show you are not a sucker but also that you’re not going to be a PITA. Does it differ if you are accredited vs. non-accredited? 

Sample Questions, OK to ask?

• Have you ever been removed as a lead on a prior deal? Too strong, reword.
• Have you ever had to do cash calls in the past? 
• Have you ever had a deal go wrong, and what were the lessons learned?
• Philosophy on holding or selling, talk about past deals. 
• With that said, word of mouth may be the lower-risk choice, is it OK to share deal information with others once the website and information is out? There are always people (more so than ever) that want to ‘kick the tires’. Do operators appreciate referrals? Yes, but note net worth. Don’t waste the operator’s time. 
• Non-Accredited LP: How close can we get to a deal?
  • Ex. Huntsville Development. Without being a burden on the operating team, what is the proper way to be a ‘fly on the wall’ as an LP, or is it even an option? 
• Reviewing monthly logs and information: I know this is a personal preference but what would you recommend looking at on a monthly basis?