Syndication is a capital raise targeting a single RE deal.
Stragery with T&Cs is worked out at the start.
Once an exit is reached, we all go our separate ways or work on another syndication.
If you get a chance to work with syndicators who have a fantastic track record in the industry, you are probably going to do very well.
They have to have skin in the game, therefore interest will be aligned.
Solid syndicators aren't in the business of losing money & their track record clearly shows.
However, if you partner up with an "inexperienced" syndicator, results might disappoint. Common sense right?
They run around looking for deals.
Eventually, they start being worried about allocating remaining capital.
If they don't they won't be earning their fees.
Some funds have a fantastic track record & are worth considering but for our family office, a deal per deal basis makes the only sense (syndications).
No.
It's the same story in the hedge fund world and the mutual fund industry.
The goal is to raise money, earn fees & achieve a year-end bonus.
The majority of the time, no one gives (you know what) about the actual investor. 😂👍