By Dr. Hamik Martirosyan

It was the best of times.
It was the worst of times.
It was the sponsors with conservative leverage and fixed-rate loans.
It was the sponsors with all variable loans and high LTVs.
It was the sponsors with a long-term vision and attentiveness to the market cycle.
It was the sponsors buying properties like there is no tomorrow to generate acquisition and asset management fees.
It was the sponsors with long track records.
It was the sponsors new to the game learning their lessons with investor money . . . 

This may not be as poignant as Charles Dickens’ opening of A Tale of Two Cities, but it highlights the importance of finding the right sponsor when investing in private real estate funds and syndications. One important lesson I have learned in passive real estate investing is that finding the right sponsor is more important than finding the right

Keep reading this article on The White Coat Investor.

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