ANSWER
Yes. We aim to keep expectations conservative so we can overdeliver and have satisfied passive investors that may want to go on and invest with us on future syndications. Before entering a syndication, be sure to review the financial forecasts made by the sponsor and be careful if the numbers seem exaggerated. You’re paying close attention to rents. Are the rents projected by the sponsor inline with area comps before and after renovations? Other areas to hone in on are projected rent growth and occupancy rates. I also advise prospective passive investors to review the T12 – this is a document you can obtain from the previous owner that trails the previous 12 months of income and expenses.