Real estate syndication Vs S&P 500 index fund

[Sanjay Bhagat]

I have a dilemma. This is my first post in Bigger pockets.

S&P 500 index fund has given a historical AAR (Average Annual Return) of 10 % in the last 60 years and 14.5% AAR in the last 15 years as of today. The AAR does NOT include dividends. With margin trading of 20-25% of initial investment, when stocks market collapses with dollar cost averaging as a strategy  , leverage of the initial investment in stocks, the AAR can be more.comparable to most syndication (compared to 20% down payment in real estate).

I have been following BP forums for the last 4-5 months and have spent almost 4-500 hours. Most syndicate offer 20%. I have never invested in syndication.

I understand diversification in different asset class (precious metals, real estate stocks etc). But if AAR is important and someone is starting out. why syndication is better than real estate for the next 10 years? My risk appetite is 80%. I do understant the team risk, market risk and deal risk in syndication as Scott in his podcast said.

Thank you for your insights

Sanjay