Summary
It is critically important to understand the fundamentals of the investment strategy before you commit your money. There are super sales people who can convince a drowning person to buy more water- unfortunately those same sales persons are interested in collecting their fee and little else. By understanding the fundamentals of a deal, one is able to determine the risk associated with the investment and then assign a fair rate of return for said risk OR walk away. When TIC sponsors purchase properties at the height of the market- there is a long time period required for appreciation to catch the true market value. If the asset does not cash flow from the first day- it is drowning. Some TIC sponsors purchased because they are fee driven- none of the TIC sponsors I work with will consider assets that can't stand on their own from day one. A great sponsor is relationship driven- not fee driven. How well do you know your sponsor? Who has double checked the calculations and assumptions?
Analysis
As a CCIM candidate, I am well versed in analyzing the value of an income stream as it pertains to commercial real estate. Stop listening to the sales jargon and find a CCIM or equivalent who can help analyze your potential investment.
