What makes a good deal in today’s market? How can I evaluate a sponsor or operator? Is there a way to mitigate the risks of investing as a limited partner?

These are only a few concerns limited partners have when choosing the right deal or fund offering. So in this episode, we’ve invited Lance Pederson to tell us his strategies for making better decisions as a limited partner, things you should be asking and looking for before investing in any investment opportunities, and his extensive expertise in evaluating a deal.

Key Points & Relevant Topics

• Lance’s extensive background in real estate syndications and underwriting deals
• Lance’s approach to underwriting as a passive and seasoned investor
• Strategies for building up expertise as a limited partner in syndication
• Determining the skills and capability of a sponsor or operator in running a deal
• Things to ask sponsors or operators before making a final decision to invest with them
• The process for evaluating a fund
• Other things investors should be looking at in a fund offering
• How sponsors can justify fees they’re charging to investors for a deal
• Why sponsors need to disclose potential risks and exit strategies to investors
• Lance’s perspective on the industrial and retail market

Resources & Links

• Lance’s LP Deal Analyzer: https://passiveadvantage.com/deal-analyzer/#mf-deal
• Apartment Syndication Due Diligence Checklist for Passive Investor

About Lance Pederson

Lance got his start in the sub-institutional real estate space in 2008 managing a $65M debt fund comprised of small balance commercial real estate loans backed by collateral located throughout the Pacific Northwest. In 2013, he founded a real estate fund administration firm that scaled to more than $3B in assets under administration. During that same time, he also served as a Principal and COO at a private equity real estate investment firm that grew from $0 to $300M+ in equity under management with a portfolio that represented over $1B of real estate.  

Since 2012, Lance has helped over 200 private lenders and real estate operators architect and form pooled investment funds. His passion continues to be working closely with real estate entrepreneurs to help them grow and scale their firms by leveraging the power of pooled investment vehicles. 

Lance is currently the Co-Founder and CEO of Passive Advantage, which develops online software tools to help investors vet real estate syndication investment opportunities. 

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