When Will I Get My Money Back If I Invest In A Real Estate Syndication?

How long will it be before I get my money back?

“How long will it be before I get my money back?” This is probably one of the first questions a new (and seasoned) investor thinks about when they are considering investing in a passive real estate syndication investment opportunity. As we have seen in previous articles capital preservation is, and should be, one of the top priorities of an investor and the deal sponsor that they will be investing with.

If the deal sponsor cannot answer this question, then perhaps you should think hard about whether to invest with this deal sponsor. To make sure we are on the same page we are not talking about the on-going cash flow, tax benefits and the other ways you get paid while you are invested in real estate but rather when do you get back the original money you invested in the deal. Before worrying about the return on your money there is always the concern about return of your money.

Part of the answer to this question relates to vetting a deal sponsor such that you have confidence in their character and competence. Their character is important so that you know they are a trustworthy person that would be a good steward of your money with full intention of returning it. Their competence is important as it shows that the deal sponsor actually has the technical skills and experience to carry out their business plan in such a way that at a minimum you would be getting your money back.