Questions to ask someone who wants you to become an investor
Hey everyone, 

I currently work in multifamily asset management and I just started a masters in real estate program at a local university. An old college friend just reached out because he is looking for "equity partners"  as he creates a real estate syndicate to acquire commercial real estate. He said he is targeting an IRR greater than 12%.

I am definitely interested in something like this, but wasn't planning on it until after I graduate from my program in a few years. However, it got me thinking about it and I was wondering what the steps would be to go into something like this? What are all the important questions to ask my friend before committing to something like this? What kind of legal issues are there? If I do get involved in something like this, I want to make sure I do all my due diligence of course. I hope this isn't too vague but if you need more info just let me know. Appreciate your help/knowledge/experience!
[{"id": "djuvr5g", "text": "What is his take/fee? \n\nAre you on the hook for guarantees? \n\nHow levered will the portfolio be? \n\nWhat sector? \n\nWhat is the exit strategy? \n\nHow much cash reserves? \n\nDo all investors get the same returns/terms? \n\nDo you have to invest cash upfront or will there be calls once there is an investment? \n\nIs the IRR projected levered or not? \n\nDoes he actually have any relevant experience with owning/operating/repositioning/leasing/selling/buying/working \nout/adding value and if not, who is going to do that for him?\n\nWhat class assets is he targeting?\n\n12% IRR is pretty high for decent properties in a lot of markets, so he is either motivated to take on a lot of risk, do value-add, or planning to take on a high level debt. If you are young and risk tolerant, could be great, but also will probably wreck your friendship and is a coin flip to lose your investment if he doesn't have a lot of experience.", "replies": [{"id": "djuvzv2", "text": "Thanks so much, this is very valuable! ", "replies": [{"id": "djuweer", "text": "If he is just looking to buy houses or small apartments you really need to focus on the management piece of this the most.", "replies": [], "depth": 3}], "depth": 2}, {"id": "djuwsdj", "text": "Good list. Also ask about the market he plans to invest in (and why) and what relationships he has with brokers, leasing agents, capital advisors / mortgage brokers / lenders. ", "replies": [{"id": "djvjzoe", "text": "Thanks so much! He is planning on Richmond, VA. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]