No. 1 Issue Passive Investors Must Focus On

The number one thing that a passive investor really should be concerned about is the track record and experience of the deal sponsor, obviously. In fact, I would argue that even though there’s 10 questions I wrote, that that first one should take up 80, 90 percent of the due diligence. Right. Because no matter how good the deal is, if you have a below standard or average syndicator, you can grab the best deal in the world and they’ll just they’ll figure out a way how to make it crappy. Just to use one of my legal terms. On the other hand, if you have an average deal or maybe not a great deal, but you bring in a really solid sponsor, they can really do, you know, I don’t say miracles, but can really work some magic with a substandard deal.

Related Articles