Module 9: Syndication Due Diligence

Real Estate Syndications: 8 Critical Due Diligence Items

Note: this is a hour long webinar to start you into the larger curriculum of deal due-diligence. We have a much larger Masterclass that you can access here.

There are eight specific items to look at when evaluating a real estate syndication deal. These items include:

Deal Type: Determining whether the deal is a debt or equity deal.

Fund Structure: Understanding if it’s a fund or a single asset LLC.

Proforma Evaluation: Assessing the assumptions made in the proforma, such as vacancy rates and operating expenses.

Asset Class and Property Type: Identifying the class of property (A, B, C) and its type (garden-style, suburban, etc.).

Location and Neighborhood Class: Evaluating the location and neighborhood to ensure it matches investment goals.

Deal Structure: Reviewing the private placement memorandum, fee structures, and general partner/limited partner splits.

Counterparty Risks: Considering the reputation and reliability of the sponsor or operator.

Reversion Cap Rate: Analyzing the reversion or exit cap rate to ensure it’s conservatively estimated.