Passive syndication investment vs other REI options

[Scott Price]

Before I pose my question, let me start off by saying that I completely understand every RE deal/strategy is different and each comes with its own pros/cons, as well as your own personal goals/desires, etc, etc, etc.

So in a very generalized sense, if a would-be real estate investor has the option to start investing in SF/small MF RE, or being a passive investor in a larger syndication deal... which one typically is better (ie better returns on your investment)?

The reason I ask, it seems there is a natural progression to start with SF, move up to small MF, and then larger MF, etc. But for someone who is starting out and has the options to start down any one of these routes... would one typically get a bigger bang for ones buck in the larger syndication deals? Especially if the syndication deals tend to also employ a similar BRRR type strategy.

Any seasoned opinions are welcome as I am really weighing my options.

Thanks!

[Jeff Kehl]

@Scott Price hard question to answer as others have suggested it sort of depends on you personally. I do all of the above and a few other types of investing because I just find it all interesting. A key question you need to answer is how active do you want to be? You can make very high returns flipping houses but it takes a lot of time and learning.

I generally find that investments I do personally have higher returns because I have total control and no one else is participating in the profits. However, I have a lot of experience and if you're just starting out you should assume you'll mess up the first few deals you do.

Also, I'm in a position where I want to transition to being less active so I'm slowly transitioning into things like Syndications, Funds and REITS. I expect them to return less than I can do personally but it's worth it to me to free up my time.

But I doubt I will ever stop directly investing in Real Estate because I just enjoy it and like to stay busy.

So, you can see, it's kind of a personal decision. Maybe try both and see what you enjoy. Buy a duplex and invest in a syndication and see which fits you better.