Investing in real estate syndications is a great way to build passive income and long-term wealth—but choosing the wrong syndicator can mean the difference between strong returns and a disappointing experience.
Not all syndicators are created equal, and who you invest with is just as important as what you invest in. Before committing your capital, it’s crucial to vet your investment partner to ensure they have a proven track record and an investor-first approach.
Here’s what to look for when selecting the right real estate syndicator.
1. Track Record – Can They Deliver Results?
Would you hand over your investment capital to a first-time syndicator who has never managed a deal before? Probably not.
A strong syndicator should have a history of successful projects, positive investor outcomes, and a deep understanding of market cycles.
✔️ Ask about past deals. How have their properties performed? Have they exited deals successfully?
✔️ Look at their numbers. Have they consistently delivered the returns they promised to investors?
✔️ Consider market experience. Have they invested through up and down markets, or only during economic booms?
At DeRosa Group, we’ve helped investors earn consistent passive income through real estate for nearly two decades, successfully navigating multiple market cycles.
📞 Want to learn about our track record? Let’s talk. 👉 Schedule a Call
2. Transparency – Are They Open About Their Deals?
A great syndicator prioritizes clear and honest communication, providing regular updates on investments.
Before investing, ask:
✔️ How often will I receive updates? (Quarterly, monthly?)
✔️ Do they provide financial reports and property performance data?
✔️ Are they upfront about risks and potential downsides?
If a syndicator dodges questions or seems reluctant to provide clear answers, that’s a red flag.
At REA Capital Management, we believe in radical transparency—our investors receive detailed performance updates, financial breakdowns, and open communication throughout every deal.
📊 Want to see how we communicate with investors? 👉 See Fund Details
3. Investment Strategy – Does It Align With Your Goals?
Not every syndication opportunity is a good fit for every investor. The right syndicator will have an investment strategy that matches your financial goals and risk tolerance.
Some syndicators focus on:
✔️ Short-term value-add deals (3-5 years, high appreciation potential)
✔️ Long-term cash flow deals (10+ years, stable passive income)
✔️ Development projects (higher risk, but potentially higher reward)
At DeRosa Group, we specialize in stabilized value-add multifamily properties—acquiring underperforming assets, renovating them, increasing cash flow, and ultimately driving strong investor returns.
📞 Want to invest in value-add multifamily? 👉 Schedule a Call
4. Investor Relations – Do They Prioritize Investors?
The best syndicators treat their investors like partners, not just sources of capital.
Before investing, evaluate:
✔️ Do they make time to answer investor questions?
✔️ Do they have an easy-to-use investor portal?
✔️ Can you speak with existing investors about their experience?
A syndicator that genuinely values investors will have clear systems in place to ensure smooth communication, reliable reporting, and strong investor support.
📊 Want to see what it’s like to invest with us? 👉 See Fund Details
5. Fee Structure – Are Their Interests Aligned With Yours?
Syndicators make money through fees and profit splits, but the right syndicator ensures their success is tied to your success.
Here’s what to ask:
✔️ What fees do they charge? Acquisition fees, asset management fees, disposition fees?
✔️ How is the profit split structured? Do passive investors get paid first?
✔️ Do they have “skin in the game” by investing their own money?
At REA Capital Management, we keep fees investor-friendly and ensure that Limited Partners (passive investors) always get paid before we do.
📞 Want to walk through our investment structure? Let’s talk. 👉 Schedule a Call
Avoiding the #1 Mistake Passive Investors Make
Many first-time investors fail to properly vet the syndicator before committing capital. They focus on the deal itself but overlook the team behind it.
The right syndicator makes all the difference.
📞 Let’s discuss your investing goals. 👉 Schedule a Call