A Real Estate Syndication Deal Gone Wrong

We send out a monthly update about all the past deals we’ve invested in through our Co-Investing Club. Most of the real estate syndication projects are doing fine. A few have narrower cash flow than forecast, due to soaring interest rates, and have delayed starting distributions. I can live with that, even if I don’t love it. But one deal in particular has completely imploded. In our latest monthly email update to our Club members, I described it as a “Case study in how things can go wrong on a deal, and a reminder that these deals come with very real risk.” One of our Club members emailed me to ask if I’d write up an actual case study about it. To break down what went wrong, and what lessons we’ve taken away from the (terrible) experience.