In most syndications your downside is capped at your entire investment. Sounds like a lot, but beats being on the hook for more than that like you are when you invest directly! But I do agree with your last statement about considering where you are at in the capital stack. Some of my favorite real estate investments are on the debt side, in first lien position. I get my profit there before the equity investors even get their capital back.If your upside is capped and your downside isn't, and if there are a bunch of people in front of you who get their profit before you (broker, promoter, general partner, manager), then walk away.
Statistics: Posted by White Coat Investor — Sat Nov 29, 2025 1:55 am — Replies 40 — Views 3149