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 RIAs & wealth advisors
For RIAs and wealth advisors: neutral education for client conversations
Your clients ask about syndications, DSTs, Opportunity Zones and oil and gas. Shareable, sourced education and due diligence frameworks.
Why it comes up
Why RIAs & advisors look at private real estate
- Clients requesting alternatives and private real estate.
- Need for neutral, sourced material to support conversations.
- Due diligence frameworks for sponsor evaluation.
What to watch
Considerations specific to you
- Your fiduciary and compliance obligations govern recommendations.
- Many sponsor products aren't on custodial platforms; operational fit matters.
- Compensation arrangements with sponsors must be reviewed by compliance.
Accreditation
How accreditation usually applies
Most private real estate offerings are limited to accredited investors. Sponsors using Rule 506(c) must verify your status.
- Advisors holding Series 7, 65 or 82 licenses in good standing qualify personally under the professional test; client accreditation is assessed separately.
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.