Opinions on crowdfunded REIT's vs. syndication deals?

[Nate R.]

I have been looking at some of these offerings from Fundrise and Realty Mogul such as Mogule Reit II and they look quite good.

If my goal is to be a passive investor, why wouldn't I buy a REIT vs. invest in syndication deals? The syndications have much higher minimums and are inherently concentrated / undiversified, whereas the REIT's are diversified geographically and have low minimums, so I can diversify across different funds, real estate sectors, etc.

I have invested in two syndication deals in the past, one of them was a home run, the other has been disappointing. At least with the REIT's, the manager has the ability to go where the best deals are, whereas with syndications I am limited to my network and deal sponsors who will take me in their deals. I am not yet accredited.

The only good reasons I can think of are:

1) If I can find a deal that is better than the market average. The odds are stacked against me here since I can't get into most deals.

2) Tax treatment. REIT's get no depreciation. Although, syndications rarely do 1031 exchanges so all those deferred taxes will come due when they get sold.

3) To get investing credibility with lenders and brokers, since I can say I was a partner in a MF deal, in case I want to purchase a MF property as an IRO in the future.

4) To develop contacts with sponsors and investors who might be able to help me in the future, by being advisors or key principals.