Inexperienced operator with NO OPERATING TRACK RECORD.
Many a syndicator has had some success
raising funds, sometimes for flow-through
tax deals or other parties. They make a
commission only. Hey, let’s open up a syndication
firm they say; buy an asset and manage it and
take commission and an operating profit. Big mistake
in many cases as it takes years to understand how to
buy, even more years to learn how to buy well and not
overpay, and even more years to know how to manage
an asset well— especially in a more normal, less heated
economy!
Thus: Check their track record and depth of knowledge
in the asset space they operate. Don’t confuse slick marketing
for a great investment!
