Top 10 LP misconceptions about syndications
Lessons LPs wish they learned sooner
Welcome back and happy Wednesday!
Investing as a Limited Partner (LP) in a real estate syndication can be a great way to allocate capital. The issue is that many LPs discover what they invested in after sending their wire.
After advising on a ton of these cases and hearing from LPs, I’d like to dissect the most common misconceptions held by LPs prior to investing so that you don’t have to learn them the hard way yourself.
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My most popular article (by a fairly wide margin) is Top 15 Syndication Mistakes, and many of you might (rightfully) ask… isn’t Top 10 LP Misconceptions the same?
I think it’s not and here’s why:
Top 15 Syndication Mistakes was written as a result of advising many LPs AFTER THEY LOST CAPITAL.
In other words, the question I tried to answer there was “what are the common denominators among deals that lose LPs money”
Top 10 LP misconceptions about syndications is answering another question - “what are the most common things LPs wish they knew prior to getting into LP investments”
You’ll notice that this article isn’t conditioned on losing capital, I am simply looking to distill the most common “I wish I knew this before” statements in a single place
Alright, let’s get into top 10 misconceptions: