Real Estate Syndication Investing

[John Rizzo]

Good morning!

I'm looking to get into real estate syndication investing for a more passive cash flow. I don't have the time to get into rentals due to constant work travel. Id like to do my due diligence up front then be hands off. How would a deal be if offered at a 6% preferred return over the course of 5 years then 6% at the sale/refi. So a 6% cash on cash return and a 12% average annual ROI. I'm not an accredited investor but I am able to fund between 50-100k for a potential deal. I've read that between 6-10% cash on cash return is the average.

[Alina Trigub]

@John Rizzo

It sounds like you have a specific deal that you're evaluating. My suggestion is to look beyond just the numbers. Do your due diligence on the operator, as well as on the market and the strategy an operator is planning to implement. Does it all tie nicely together? Do the numbers and the strategy give you a picture into the future that is in line with your expectations?  

Here're a few more posts to help you make a decision:

https://www.biggerpockets.com/member-blogs/10850/87614-interpreting-the-private-placement-memorandum-ppm

https://www.biggerpockets.com/member-blogs/10850/86626-the-pros-and-cons-of-investing-via-real-estate-syndication

https://www.biggerpockets.com/member-blogs/10850/79257-deciphering-syndication-investment-terminology