Blindly following traditional rules of thumb can leave the investor more exposed to unnecessary risk. The right allocation for you will depend on your risk tolerance, time horizon and additional factors specific to your unique situation. Let’s take a look at some things you might want to consider.
Throughout all of his many investments over the years, and gaining investment momentum, a friend of mine has adhered to some guiding principles that he feels other people could use as well.
So… What are the tips?
I think you can interpret what I’m saying here. When you start investing in apartment complexes, you can expose yourself to needless risks in the form of tenant lawsuits. It is wise to do it the right way. Luckily, most syndications can offer several layers of protection.
Knowing how to pick a syndicator is a skill that every passive investor needs to hone. Before you evaluate syndication deal opportunities, you first need to evaluate the actual syndication teams. Good teams will usually have good deals, so if you are looking for opportunities, finding the team is the higher priority. But then, this article will show you what needs to happen next – the interview. Ask the right questions.
Each multifamily investment in a real estate project deal is unique, so it is sometimes difficult to compare them against each other. One way that you can do this is to compare the different characteristics of risk in order to make an informed decision on which one to invest in. You ultimately want to make sure that the riskier a project might be, that you are getting paid for that risk.