This blog outlines 50 essential questions passive investors should ask syndication sponsors to conduct thorough due diligence, ensuring investments align with their risk tolerance. It covers general, deal-level, legal, and team-related inquiries to help investors make informed decisions.
CTA, FinCEN, BOI – Why Entity Owners Need to Know These Abbreviations in 2024 to Avoid Big Penalties
The Corporate Transparency Act (CTA) was established by the Financial Crimes Enforcement Network (FinCen) as part of the 2020 Anti-Money Laundering Act. If you have an LLC, which many of us do for our real estate investing, then these new guidelines pertain to you. But it is not limited to just LLCs created for […]
I have been an active investor in mobile home parks (MHP) for the last five years having bought, operated, and infilled eleven mobile home parks consisting of 700 lots. People often ask me, “Why do you invest in mobile home parks?” Here are my Top 5 reasons: 1. Sticky resident base – While the average […]
*This was part of a monthly update the blog’s author, Denis Shapiro, provided for his income fund investors. Due to ongoing court matters, he tried to avoid mentioning any names, but he did provide an SEC link to the actual charges. Before we get into the most recent SEC investigation that has made significant waves […]
Mark Cuban: “Diversification is for Idiots.” Important note: If the headline is changed, and drops the Cuban quote, I am including it in a box here for the article lead. But if the quote is preserved in the article, we can delete it here… “Diversification is for idiots.” – Mark Cuban “Diversification is protection against […]
I love when I come home from a long day at work and see that my lawn has been freshly manicured. When I used to do the mowing, I would have to mentally schedule time after work or on the weekends. Of course, I would also have to watch the weather forecast and adjust my […]
It’s hard to believe that just one year ago passive syndication investing was a foreign world to me. Twelve months back, I was nose-deep in a course on active real estate investing, researching markets, contacting various agents, lenders, and contractors, analyzing deal after deal, and wondering how I would ever find a cash-flowing rental property […]
Clarifying Return ON Capital vs. Return OF Capital In most passiveinvestments, the sponsor commits to paying the investors a specified percentage of their investment per year before the sponsor can start to collect performance fees. As such, these payments are referred to as “preferred returns” and the payment relative to the investor’s capital is the “preferred […]
You have evaluated the deal metrics of a prospective commercial real estate syndication and you like the deal. What’s next? Ask the sponsor for the offering documents. The “offering documents” are the instruments that create a legally enforceable contract among the sponsor, the investors, and the business entity (the issuer) that is issuing a passive ownership stake […]
Indianapolis, Indiana, metro is home to over two million people. It features a growing corporate base, highly educated workforce, world-class sporting events, high-end cultural attractions, as well as a consistently growing list of shopping, dining, and entertainment options. Residents benefit from an above-average quality of work-life balance, as reflected by consistently high national rankings and […]