The sponsor matters as much as the property. Before investing with any sponsor, including us, ask:

  1. What is your full track record? Ask for every realized deal, with investor-level returns, not a handful of highlights.

  2. Do the principals invest their own money? Sponsors with capital in the deal share your risk.

  3. Who guarantees the loan? Find out who signs the non-recourse carve-out guarantees and how much financial strength stands behind them.

  4. How conservative is the underwriting? Ask what rent growth, exit cap rate and interest rate the projections assume, and what happens if those assumptions miss.

  5. What reserves are in place? Adequate reserves at closing reduce the risk of a capital call if expenses run over.

  6. How will you report to me? Look for regular updates, timely K-1s and an online portal with your statements and distribution history.

  7. What happens if the plan goes off track? Experienced sponsors can describe deals that did not go as planned and what they did about it.

For answers to these questions about Creative Realty Partners, see our FAQ or contact our team.

This article is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Past performance is not indicative of future results.