Quick Start Guide to Vetting a Multi-Family Syndication Deal to optimize your time

I. Watch Webinar and review the executive summary attached.
 
II. Do you have available funds to meet the minimum contribution and meet the deadlines for funding this deal? Using cash (most common) or self-directed IRA or solo 401k? 
 
III. The Deal:
 
Does the property appeal to you? 
Is the property location strong or offer opportunity? Consider population, jobs, economic growth of area. 
Does the median income support the proposed rents after business plan 
is implemented?  
Numbers? Cost of property, debt service interest rate, and structure.  
What are returns for passive investors (limited partners)? Does it align 
with your investment goals?  
Are projected returns realistic? Supported by data? Is underwriting conservative? Is there cushion for unexpected costs? 
Does the business plan make sense, is it realistic?
Are there any other fees or special type of payout structures, i.e. waterfall or preferred? 
What is minimum investment and what is the deadline for funding? 

IV. Sponsors:
Who are the general partners? 
What is their previous experience and track record?  
Will the sponsors be investing, meaning do they have “skin in the 
game”? 
What roles will each of the sponsors play?  
 
V. Set up a call with sponsors to discuss your thoughts and questions if not already addressed. 
 
VI. When you decide to Proceed:
 
1. Fill out soft commitment documents if you have not already
2. Fill out subscription documents- see on top for link
3. Identify your account and Prepare your personal funds you will be wiring to make available
4. Once you fill out subscription documents you should receive wiring instructions 
5. ALWAYS verify the wiring instruction before deploying. Either call or text the Lead sponsor directly to do a check back.
6. When sending your wire give a day or two leeway. There has been increased wire fraud and some banks are verifying and taking longer to approve wires.  
 
 
 Practical items to consider:
Do you have available funds to meet the minimum contribution and meet the deadlines for funding this deal? Cash is most common however other options are a self-directed IRA or solo 401k plan, potentially creating an LLC and combining funds from others you know? Check SEC? all need to have a relationship and all accredited/sophisticated?
If considering using a self-directed IRA or solo 401k plan:
1. Is this account (self-directed IIRA or solo 401k) currently set up or will I need to contact a company to open the account and will that whole process happen in time to meet funding deadline? Sponsors may have recommendations on companies. 
2. If and when transfer of funds will occur