Is Your Syndicator Looking In the Wrong Market? | Multifamily Investing Made Simple

Is Your Syndicator Looking In the Wrong Market?
It is very common for apartment syndicators to invest in deals outside of their area of residence. There is nothing wrong with this. But, you want to make sure that if you are considering investing in a deal that is not in the area that the sponsor lives that you ensure the sponsor has prior investing experience in that area. Or, you will want to see that the syndicator has experience with the local property management team that they will be using.
We all know that real estate is heavily influenced by the location and the local market. And, even in strong markets, there are going to be pockets of ‘rough’ areas that may not be obvious without having experience in that area.
If a syndicator doesn’t have prior experience investing in a market or doesn’t have experience with the planned management team, there is an increased level of risk in the deal. You do not want a syndicator trying out a new market and new management team with your money.
Make sure you ask these questions while evaluating deals. If you don’t, you may be exposed to more risk than you think.

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