What should you ask before investing in a real estate fund or syndication sponsor?

Ask about the sponsor's track record across full deal cycles, not just current properties still in the middle of their hold period. A sponsor who has taken multiple properties from acquisition through a successful sale has been tested in a way one still mid-hold hasn't.

Ask specifically how the depreciation and any cost segregation study will be handled, who performs it, and how the resulting deductions will be allocated among investors. This is where the actual tax benefit either shows up as promised or quietly falls short.

Ask what happens in a downside scenario, not just the projected return. How the sponsor has handled a property that underperformed tells you more about their judgment than any pitch deck built entirely around the upside case.