# Questions to Ask a Sponsor Cheat Sheet

Educational use only. This resource is not investment, legal, tax, accounting, or securities advice. It is not an offer to sell or a solicitation of an offer to buy any security.

Use these questions to slow the conversation down. You are not trying to sound adversarial. You are trying to learn how the sponsor thinks when the answer is not convenient.

## Opening questions

- What is the simplest version of the business plan?
- What has to go right for the plan to work?
- What has gone wrong in similar deals before?
- Which part of the plan is most sensitive to timing?
- What would make you pass on this deal today?

## Sponsor and team

- Who is responsible for acquisition, asset management, investor reporting, and property management?
- How many full-cycle deals has this team completed in this asset class?
- How much sponsor capital is invested, and on what terms?
- Which responsibilities are outsourced?
- Who replaces a key person if they are unavailable?

## Underwriting

- Which rent comps matter most, and why?
- Which expense line is most likely to surprise investors?
- What vacancy, bad debt, and concessions were assumed?
- What is the downside case?
- Which assumption would reduce projected returns fastest?

## Debt and reserves

- What is the loan type, rate, maturity, amortization, and recourse?
- Is there floating-rate exposure?
- What reserves are held at closing and during operations?
- What is the refinance or sale plan if rates are higher?
- What happens if the exit is delayed by 12 to 24 months?

## Documents and investor rights

- Where does the operating agreement describe fees, voting rights, transfers, and capital calls?
- What conflicts are disclosed in the PPM?
- When and how are investor reports sent?
- What tax documents should investors expect?
- Which questions should go to securities counsel or a CPA?