What Syndication Investors can Learn from Institutional Investors with Trevor Crow

Published: Feb. 21, 2023, 8 a.m.

b'Taylor interviews Trevor Crow, an experienced attorney who specializes in real estate syndication law. They dive into what institutional investors look for when investing as a limited partner in a syndication deal and how Main Street investors can apply those lessons and strategies to their investments. From understanding the typical size of deals that Trevor works on, ranging from one-off syndicated deals to packages of 16 hotels at a time, to the negotiation process between individual investors and larger capital providers, this conversation offers valuable insight into the potential risks and protections that passive investors need to be aware of. Listen in as they discuss key factors such as fees and decision rights, removal of the manager for gross negligence or fraud, arbitration agreements, and bankruptcy of the manager - all so you can make sure you\'re protected when investing in a syndication deal!\\n\\xa0\\n[00:01 - 05:01] Digging into Institutional Real Estate Investors: What Big Guys Look for in Syndicated Deals with Trevor Crow\\nTrevor discusses his experience working with institutional investors and what they look for when investing as a limited partner in real estate Syndications\\nHow Main Street investors can apply the strategies of institutional investors to their investments in real estate syndications\\nDeals range from first-time syndicators to 150-million-dollar real estate funds\\nNegotiations are different depending on the size of the deal\\n\\xa0\\n[05:02 - 14:31] Negotiating Terms of Deals with Large Capital Providers: Fraud, Loss of Promote, and Removal of Manager\\nLP-sided document vs. sponsor-favorable documents\\nMajor decision section requiring approval for certain actions\\nNegotiation of fees and distribution waterfall\\nTiered structure to ensure capital provider receives money along the way\\nRemoval of manager and loss of promotion due to fraud, gross negligence, reckless conduct, etc.\\n\\xa0\\n[14:32 - 21:55] Protecting Yourself as a Passive Investor in Syndication Deals\\nFraud, gross negligence, breach of contract, and taking unauthorized actions are key issues to look out for\\nThe bankruptcy of the manager can lead to a loss of promote\\nArbitration agreements should be tailored to the situation and may not always be faster or cheaper than court\\nCheck if there are any major decision rights granted\\nBe aware that retail investors may have less power in these situations\\n\\xa0\\n[21:56 - 27:01] Closing Segment\\nWhat is the best investment you ever made: buying a town in 2007\\nSee the links below to connect with Trevor\\n\\nConnect with Trevor through trevor@doidacrow.com, or visit www.DoidaCrow.com.\\xa0\\n\\xa0\\nInvest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/\\nParticipate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.\\nJoin our Passive Investor Club for access to passive commercial real estate investment opportunities.\\nLEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.\\n\\nQuotes:\\n\\xa0\\n"I\'ve learned that the network is a much better way of getting out there and finding qualified clients that are good fits." - Trevor Crow\\n\\xa0\\n"Getting rid of risk, but make sure that it\'s not fully written in this indicator\'s favor, and you\'re just up a creek without a paddle." - Trevor Crow'