298. Don't Invest with Strangers! | Office Hours

Key Takeaways:

Don't invest with syndicators you don't know personally. It's important to thoroughly vet and understand how a syndicator operates before investing with them.

Align incentives with your investment partners. The general partner should have significant skin in the game and be taking on meaningful risk alongside the limited partners.

Be very conservative in your underwriting and stress test deals for various scenarios. Don't rely on overly optimistic assumptions.

Focus on getting 20%+ annualized cash-on-cash returns. Anything less may not be worth the risk and effort compared to other investment options.

Avoid 50/50 partnerships, as they can lead to stalemates and disputes. One partner should have majority control.