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133: Investing in Real Estate Syndications – Exclusive Webinar Replay

The Lifestyle Investor - Investing, Passive Income, Wealth

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How to De-Risk a Deal

I want to know that a sponsor has their own money in the deal, and realistically, I would like to know that they've got a decent amount of cash. A lot of sponsors and GPs are notorious for being high-feed, so that means they make money even if the deal goes bad. Track record is important. If we can get two different times in about 20 years, I like seeing that experience. And then I think one of most important indicators and metrics to look at is past deals. So what type of pro forma have investors gone all the way to the end? Meaning they've made an IRR (return on invested capital) or more than 25%.

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