How to Vet a Real Estate Syndication Sponsor
Track record, alignment, operations, reporting and red flags: a due diligence framework for passive investors.
Read →For Corporate executives & senior managers
Private real estate for executives: evaluate it like a board would
You already review strategy, teams and risk for a living. Apply the same lens to sponsors and deals.
Why it comes up
Why executives look at private real estate
- High income and bonuses that create investable surplus.
- Desire for assets outside employer stock and public markets.
- Familiarity with evaluating management teams.
What to watch
Considerations specific to you
- Check employer policies on outside investments and conflicts.
- Deferred compensation and bonus timing affect cash availability.
- Don't skip the legal documents because the pitch deck is polished.
Accreditation
How accreditation usually applies
Most private real estate offerings are limited to accredited investors. Sponsors using Rule 506(c) must verify your status.
- Income test: $200,000+ individually or $300,000+ jointly in each of the last two years, with the same expected this year.
- Net worth test: $1 million+, alone or with a spouse or spousal equivalent, excluding your primary residence.
Summary of SEC rules for education. Confirm your status with your advisor; sponsors may request documentation. See who qualifies.
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Educational content only; not investment, tax or legal advice, or an offer to buy or sell any security.