Syndication passive investor: fast track question

[Ron Ripley]

Hey BP community! I have been investing in SFH (hold) for 10 years and now focused on primarily commercial (syndication) and have invested in a couple deals. I am an accredited investor and now very focused on fast tracking towards retirement (or at least a non-w-2 life!). I'd love to hear from folks who have preferably already done this and are now financially independent. I'm very curious what your strategy was in terms of how best to divvy up your capital? I want to be sure I am diversifying well across sponsors/geographies, while doing it in the quickest way. So my question is, would there be any negatives about taking, say, $1M (example) and splitting it 4 ways ($250k per deal) as opposed to 10 ways ($100k per deal) to fast track? Do folks feel that is diverse enough? Obviously 4 deals can be attained quicker than 10.

I was a bit wordy in my question - but you get my gist hopefully. Thoughts everyone? Thanks so much. My primary goal here is being smart but also fast in quitting the w2 world. 

[Luke Miller]

@Ron Ripley i'm not financially independent yet, but I have passively invested quite a bit. My best advice would be to divvy your capital up in a couple ways. Like you mentioned, sponsor is important, but also vintage. Don't deploy everything in 2020. Also, you might want to look at different equity structures. (bridge loans, cash-flow plays, hybrids, etc) finally, you'll probably want to diversify over 2, maybe 3 sponsors that you trust. 

This will go a long way in diversifying. $1mm is plenty to retire on if you can keep your expenses low.