The Real Estate Vibe!

Ep 183: How To Vet Sponsors In 2025

Vinki Loomba Season 2 Episode 183

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In this power-packed episode of The Real Estate Vibe Show, Vinki Loomba and special guest Spencer Hilligoss dive into the critical art of vetting sponsors for passive real estate investing in 2025. With the right sponsor, your investment can soar—but how do you find the right one?

Spencer Hilligoss, CEO and co-founder of Madison Investing, shares his real-world insights on how to vet sponsors and operators in the fast-evolving world of passive real estate investing.

Key Takeaways:

  1. Track Record Matters—But Not Just The Numbers: Spencer emphasizes that a sponsor’s experience is crucial, but even more important is how they managed the deal. Ask about previous successes, but also be open to understanding any challenges and how they were overcome.
  2. The Power of Approach: Sponsors with a clear, repeatable business process are more likely to succeed. Spencer shares how sponsors should know their operational playbook inside out and be able to articulate it clearly.
  3. Communication Is Key: Look for sponsors who communicate openly, especially during tough times. Ask for examples of when they’ve had to deliver bad news to investors and how they handled it.
  4. Alignment of Interests: Ensure the sponsor’s financial interests align with yours. Look at their fee structures and the profit-sharing model. Sponsors with too-high fees may have conflicting priorities that affect your returns.
  5. The Importance of Values: Vetting a sponsor goes beyond finances. Sponsors who prioritize ethical treatment of tenants and value safety and community-building show long-term responsibility and vision.

🔗 Connect with Spencer on LinkedIn: https://www.linkedin.com/in/shilligoss/
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