The most important element in forging a partnership with a sponsor is trust. Afterall, you’re handing them over $50K+ to invest. Have I included friends and family in my syndicate deals? This is a reasonable question to ask as it’s presumed if I have managed capital for those closest to me, it’s likely the deals I get them involved in are promising. The answer is “yes,” I have included friends and family in my syndications. If you’re asking other potential sponsors (and I hope you are shopping around, it’s just a good investment practice), then you may ask them about whether they have personal relationships with the passive investors in their deals. How long have they known them and how did they meet? You’re looking for whether their passive investors have trusted them enough to invest with them on multiple deals, in which case the sponsor has a good, trustworthy track-record.
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