Episode 23: The Anatomy Of A Syndication Deal – From Acquisition To Exit

Building Passive Income

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Welcome to Building Passive Income with CREI Collin

Ever wonder what happens behind the scenes from the moment you invest to the day you receive your exit proceeds? CREI Collin walks through the entire lifecycle of a syndication deal—all six phases from acquisition to exit. Learn what the sponsor is doing at each stage, what can go wrong, and how to evaluate deals at every phase.

What You’ll Learn

The six phases of every syndication deal lifecycle
How sponsors source and underwrite deals before you ever see them
The due diligence and financing process (30-90 days)
What happens at closing and how your money is deployed
The stabilization phase: where execution risk shows up
Cash flow and hold period management
The exit and disposition process
What can go wrong at each phase and how to evaluate progress

Key Topics Covered

Phase 1: Deal Sourcing and Underwriting – Building the financial model
Phase 2: Due Diligence and Financing – Validating assumptions and securing capital
Phase 3: Acquisition and Closing – Officially becoming a limited partner
Phase 4: Stabilization and Value-Add Execution – Where execution risk is highest
Phase 5: Cash Flow and Hold Period – Operations and distributions
Phase 6: Exit and Disposition – Timing the sale and returning capital

Timestamps

[00:00] Introduction: From investment to exit
[02:00] Phase 1: Deal Sourcing and Underwriting
[04:30] Phase 2: Due Diligence and Financing
[07:00] Phase 3: Acquisition and Closing
[08:30] Phase 4: Stabilization and Value-Add Execution
[11:00] Phase 5: Cash Flow and Hold Period
[13:00] Phase 6: Exit and Disposition
[14:30] What can go wrong at each phase
[15:45] How to evaluate deals at each phase

Key Takeaways

Sponsors analyze dozens of deals and only move forward with the best ones
Due diligence often takes 30-90 days and validates all underwriting assumptions
Earnest money is often refundable during diligence, may become hard after
Phase Four (stabilization) is where execution risk shows up the most
Commercial real estate is often valued primarily off income, with comps influencing pricing
Hold periods typically last 3-7 years, but exit timing depends on market conditions
Great sponsors communicate transparently and adapt when challenges arise

Resources Mentioned

Syndication lifecycle infographic
Episode 21: How to Read a PPM
Episode 22: Understanding Your Investor Rights
Episode 24: Types of Real Estate Syndications
CREI Partners deal updates and transparency: CREIPartners.com
Schedule a consultation: Let’s Talk

Action Step

Pull up the investor updates from one of your current syndication investments. Identify which phase the deal is in right now. Evaluate how the sponsor is executing based on the original business plan. Are they on track? Are they communicating transparently? If not, reach out and ask questions.

Disclaimer

This podcast is for educational and informational purposes only and should not be construed as investment, tax, or legal advice. Always consult with your CPA, attorney, and financial advisor before making any investment decisions.

Call to Action

Ready to Build Your Diversified Passive Income Portfolio? Let’s create your personalized portfolio strategy together. Schedule your free 30-minute consultation: Let’s Talk

Meta Description

Learn the 6 phases of a syndication deal from acquisition to exit. Understand what happens behind the scenes and how to evaluate sponsor execution at every stage.

Hashtags

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