A 16-Point Checklist of Actions to Take AFTER Deciding to Invest in a Syndication

Most of the time spent on a passive investment decision occurs before you make the investment; however, there are many important actions to take after you have decided to invest in a deal as a limited partner. It is easy to get excited about doing the next deal, but before you do the next deal, let’s think about how you should organize and keep track of all of the critical information that is involved with passive investing.

Actions to consider…

1) Create your deal folders

  •  Email folder
  • Computer folder
  • Physical folder (yes, I still do this with a manilla folder)

2) Decide on “who” the investor will be

  • You, personally
  • LLC
  • Trust
  • Self-Directed IRA

3) Where will the cash come from?

  • which checking account
  • do you need to transfer funds
  • policy loan from life insurance
  • move funds from a Line of Credit
  • distribution from one LLC entity into another LLC entity

4) Gather the final subscription documents you need to sign

  • Operating agreement
  • Subscription agreement
  • ACH agreement for distributions
  • Other documents

5) Sign/Scan/Email

  • This can be more complicated / time consuming if investing via an “entity” that  you can’t directly sign for (Trust, SDIRA, LLC, etc.). Keep this time factor in mind…

6) Create a list of “deal to-do’s” in your calendar

  • Many items from this list, discussed here, could be on the “deal to-do” action list
  • It’s easy to get distracted, so this to-do list will be very helpful

7) Save the documents to your deal folders

  • Documents you have signed, but the sponsor has not signed yet. You want to know what you have signed.
  • Email folder
  • Computer folder
  • Print for Physical folder

8) Confirm receipt of deal documents

  • Save this email from the sponsor

9) Wire the investment funds

  • Send email to sponsor documenting you have taken this action

10) Confirm sponsor has received the funds

  • Be sure to get an email from the sponsor confirming this

11) Receive fully executed documents from the sponsor

  • Sometimes you have to chase the sponsor
  • You want executed documents with your signature and the investment sponsor’s signature

12) If the sponsor has an online portal:

  • Save your login information
  • Bookmark the website name (URL) of the online portal
  • Verify your investment shows up in the portal

13) Add the investment to your tracking spreadsheet (or software). Fill in all the data fields that you will refer to one day for portfolio analysis, sorting, data management, distribution tracking, K1 tracking, etc. For example:

  • Date
  • Amount invested
  • Sponsor
  • Investment Entity
  • Investment type
  • Hold-term
  • Class type/Category (i.e. multifamily, self storage, private loan, etc.)
  • Expected financial performance
  • IRR
  • Equity multiple
  • CoC (Cash-on-cash)
  • Refinance potential?
  • Tax treatment
  • One-time or commitment

I encourage you to do this as soon as possible after you decide to invest. It really will become fuzzy down the road and you are going to want to come back and look at “what you expected” from the investment…

  • Consider joining the Infield to get a copy of the Left Field Investors “Portfolio Tracker” 

14) Add the investment to your balance sheet and/or accounting software

  • And/or send information to your bookkeeper/CPA

15) Set up calendar reminders

  • Updates from the sponsor (Quarterly / Annually)
  • Distributions
  • You want the sponsor to know you are paying attention

16) Wait for the cash to roll in…hopefully!

Naturally, you are going to want to move on to analyzing the next deal, but, believe me, months or years down the line, you will be very glad you took the time to organize each deal because there will be times you will want to look back and analyze various aspects of the deal(s).

Good luck!

David Shirkey is a full-time investor. He leads the Michigan Investor Group (MIG) in order to share and learn investment knowledge and experience with others.  He has a special focus on operating companies in the manufacturing space, mobile home parks and high cash value life insurance and the Infinite Banking Concept (IBC).  You can connect with David at dshirkey@orbitform.com. 

Nothing on this website should be considered financial advice. Investing involves risks which you assume. It is your duty to do your own due diligence. Read all documents and agreements before signing or investing in anything. It is your duty to consult with your own legal, financial and tax advisors regarding any investment.

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