Limited Partnership in MF investment vs. Buying SFR or MF

[Heena Meena]

I am a new to RE investment...

I'd like to get BP's experts opinion on buying SFR Or MF/duplex by myself vs. investing as limited partner in MF investment syndicate.

Here are the syndicate MF details -

investment amount is $60,000

annual return 9%

After 5 years when they sell MF, principal will be returned plus 20% on principal which is $60000 plus $12000

What do you all think if I invest in SFR Or Duplex/MF by my self with $60,000 as down payment as better option, get more returns and good for long term vs. investing in MF syndicate?

Thanks

[Lee Johnson]

@Heena Meena, You cannot go wrong with the advice provided by @Ian Ippolito. Ian recently wrote a blog, full of content on vetting syndications: 

https://www.therealestatecrowdfundingreview.com/single-post/2019/10/08/Is-the-Sponsor-Taking-Fair-Compensation-Or-Ripping-Me-Off

The vetting of the Sponsor is critical with Syndications. You will want to work with Sponsors having a proven & successful track record. 

The Sponsor vetting process is also a great way to gain insight into the business. Personally, I've read too many Investment Summaries to count and more than 100+ Private Placement Memorandums (PPM), which has been an education all on its own. The PPMs are very boring and dry to read; however, I've learned so much w/o having to pay anyone a dime.

Good luck with your Investing!

Lee Johnson

Value Investment Partners | www.ValueInvestmentPartners.com