Investor Resources

First and foremost, you should look at the operator, a sponsor, or a manager. This will be the one that's controlling the deal. Find one that has a good reputation, and a proven track record, one that hasn't bought everything and just ridden the market to success, and one with operational plans and strategies, not one that is just riding the market. Everyone has a plan until you're punched in the face; this is when being able to adjust and maneuver becomes a valuable skill. 

You want a good operator, that's the first thing to look for. The second thing is you have to look through the documents of the deal, the subscription agreements, PPM, and the operating agreements. There are many pages of legal documents to get into syndications. If you don't have a lawyer looking over the documents with you, you need to take your time and go through all of it. 

As we were doing our due diligence on our syndications, and later our private equity fund, I read through hundreds and hundreds of different subscription agreements. You'd be surprised what hidden fees are written in there. 

We had an investor come to us that had mistaken us for another investment company. After talking, I said, let me review the documents. I think I found around 16% of fees in there, part of which were upfront. So, they were diluting that investment before any money was paid out, it was crazy. 

Remember, look for a good sponsor group and confirm what the fees are upfront and clearly stated in those legal documents.