Episode #850 “Want to invest in multifamily real estate, do zero work, and make a million dollars, all in a few months? Well, we have the opportunity for you! We’re about to make you a gazillionaire for the low, low price of your entire life savings. Don’t worry about doing any due diligence; just sign these papers without looking through them. You’re about to strike it rich!” Most people can call out an obvious scam or bad real estate deal, but what about the less-than-obvious signs? Today, we’ve got two multifamily real estate experts, Andrew Cushman and Matt Faircloth, on the show to go through the multifamily and syndication red flags that could cost you EVERYTHING. Andrew even went through the painful process of losing 90% of an investment years ago just to walk through his lessons on the show. Whether you’re partnering on a deal or passively investing in syndications, if any of these red flags show up, you should run—immediately. From vetting a sponsor to investigating track records, which metrics to trust (and which NOT to), and the questions you MUST ask, this episode alone could stop you from losing tens or hundreds of thousands of dollars. ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media ~~~~ Expand Your Investing Knowledge With the BiggerPockets Books: https://store.biggerpockets.com/?utm_source=owned_media ~~~~ Find an Investor-Friendly Agent in Your Area: http://biggerpockets.com/agentmatch ~~~~ Find Investor-Friendly Lenders: http://biggerpockets.com/findlenders ~~~~ Books Mentioned in Today’s Episode: Pillars of Wealth: https://store.biggerpockets.com/products/pillars-of-wealth?utm_source=youtube&utm_medium=description&utm_campaign=none Raising Private Capital: https://store.biggerpockets.com/products/raising-private-capital-revised-edition?utm_source=owned_media The Richest Man in Babylon: https://store.biggerpockets.com/products/richest-man-in-babylon-biggerpockets-edition?utm_source=youtube&utm_medium=description&utm_campaign=none The Hands-Off Investor: https://store.biggerpockets.com/products/the-hands-off-investor?utm_source=owned_media ~~~~ Connect with Andrew: BiggerPockets: https://www.biggerpockets.com/users/andrewc58?utm_source=youtube&utm_medium=description&utm_campaign=none LinkedIn: https://www.linkedin.com/in/andrew-cushman-959471a Vantage Point Acquisitions: https://www.vpacq.com/ ~~~~ Connect with Matt: BiggerPockets: https://www.biggerpockets.com/users/mfaircloth?utm_source=youtube&utm_medium=description&utm_campaign=none Instagram: @themattfaircloth or https://www.instagram.com/themattfaircloth/ DeRosa Group: https://derosagroup.com/ ~~~~ Connect with David on BiggerPockets: David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Follow David and BiggerPockets on Instagram: @davidgreene24 or https://www.instagram.com/davidgreene24/ @biggerpockets or https://www.instagram.com/biggerpockets/ Show notes at: https://link.chtbl.com/BPRE 00:00 Intro 00:30 Quick Tip 00:51 "I Lost 90% Of My Money!" 04:20 Vetting a Sponsor/Syndicator 09:36 1. Too Many "Partners" 16:16 2. Suspicious Actions 17:52 3. No Track Record 23:50 4. A Jack of All Trades 28:36 5. Not Enough Market Knowledge 34:02 6. Pushing ONE Metric 41:05 7. No Debt Transparency 43:39 BEFORE You Invest