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 Physicians & healthcare professionals
Private real estate for physicians: passive, if you vet it well
High income, little time, and a lot of pitches. A clear framework for evaluating syndications without becoming a part-time real estate investor.
Why it comes up
Why physicians look at private real estate
- High W-2 income and limited time to manage rentals.
- Interest in diversification beyond retirement accounts.
- Depreciation from real estate may offset some passive income (ask your CPA).
What to watch
Considerations specific to you
- Physicians are heavily targeted by sponsors; slow down when you feel urgency.
- Passive losses generally don't offset W-2 income unless you qualify as a real estate professional, which is rare for full-time clinicians.
- Match hold periods to your career plans (fellowship, partnership buy-ins, practice purchase).
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.
Start here
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Educational content only; not investment, tax or legal advice, or an offer to buy or sell any security.