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Jake and Gino Multifamily Investing Entrepreneurs

How To avoid Syndication Mistakes: PART 1

Aug 14, 2024
10:05

Welcome to the latest episode of the Jake and Gino How-To series!  Whether you're a seasoned passive investor or just getting started in real estate syndication, this episode is a must-watch. Gino Barbaro, co-founder of Jake and Gino, dives deep into the common pitfalls that limited partners (LPs) face when investing in syndications and how to avoid them.

In this video, Gino shares his personal experiences, revealing two major mistakes that passive investors often make when aligning their interests, and the two critical errors sponsors commonly commit. Understanding these can save you a ton of money, heartache, and set you on the right path to becoming a savvy investor.

Here's what you'll learn:

  • The importance of the "return of capital" clause and why LPs should get their money back first.
  • Why you should be wary of high acquisition fees and how they impact your returns.
  • The significance of thoroughly vetting the GP's business plan and ensuring it's backed by solid data.
  • How to assess the general partnership team's experience and ensure they’re the right fit for your investment goals.

If you're serious about becoming a strong, empowered LP, this episode is packed with actionable insights that will help you make smarter investment decisions. Don't forget to check out our Passive Investor Pro program to take your investing knowledge to the next level.

Key Takeaways:

  • Always ensure there's a clear return of capital clause for LPs.
  • Be cautious of acquisition fees over 3%, especially on large deals.
  • Always ask for the GP's business plan and the detailed data supporting it.
  • Make sure the GP team has the necessary experience and isn't just there to raise capital.

Additional Resources:

If you found this episode helpful, smash that subscribe button and give us a thumbs up! Have questions or thoughts? Drop them in the comments below—we love hearing from you!

We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) 👉https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/

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