When investing in a real estate syndication, besides for doing your due diligence on the investment itself, due diligence on accounting practices is a must.

When investing in a real estate syndication, besides for doing your due diligence on the investment itself, due diligence on accounting practices is a must.

What systems does the operator have in place to track everything and file partnership returns properly?

Are they using a bookkeeper and accountant experienced with these kinds of investments, or are they just winging it on their own?

Or do they have some vague plan to hire an accountant eventually? 🚩

It's unbelievable what kind of stuff goes on out there. 

Even if it turns out to be a great investment, if accounting isn't done properly, you could lose a big portion of your investment or return. 

This can also expose you to unknown tax liabilities which can bite you unexpectedly at some later point.