Syndicate VS Turnkey

[Corey M.]

Hi,

I'm wondering why people choose turnkey over syndicates? From what I can tell, Syndicates tend to have a much larger return and are completely passive, just like a turnkey. 

Would love some feedback. 

[Ian Ippolito]

Originally posted by @Corey M.:

Hi,

I'm wondering why people choose turnkey over syndicates? From what I can tell, Syndicates tend to have a much larger return and are completely passive, just like a turnkey. 

Would love some feedback. 

Corey, there are advantages and disadvantages of syndication/passive versus directly owning real estate/active. personally I do both and don’t feel either one is 100% better than the other in all circumstances.

When you own it yourself, you have more control and you can also put in sweat equity to increase your return. If you are time rich and money poor, this can be a good option. Another hand it does require a lot of work, time effort and expertise which not everyone has.

When you invest passively in a syndication, You don’t get that extra boost from sweat equity. But in return, once you do the work of figuring out who you will invest in, your work is done. You can also diversifying to many more different asset classes, strategies and geographies with the same amount of money versus owning directly. Also if you choose wisely you can pick someone that has years more experience than you could ever hope to gain.you don’t get that extra boost from sweat equity. But in return, once you do the work of figuring out who you will invest in, your work is done. You can also diversify into many more different asset classes, strategies and geographies with the same amount of money versus owning directly. Also if you choose wisely you can pick someone that has years more experience than you could ever hope to gain.

On the downside, you have to be comfortable turning over control to someone else, and vetting that person. This is something that not everyone feels comfortable doing.
Hope that helps.