Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 6 years ago,
Do syndicators outperform the average investor?
I'm wanting to enter a more restful season of life after sprinting hard that last few years. Syndications, in theory, sound like a very attractive option to me. I get how they work, but I wanted to ask you:
1) Do average syndications with seasoned syndicators tend to outperform the average person trying to be a landlord on their own? My biggest mental hurdle is whether the fees a syndicator (rightfully) charges makes it so that passive investors only net marginal returns. Also I'm wondering if syndicators take a bunch of mediocre deals in hit markets like this just to keep their own deal flow and revenue going.
2) any specific recommendations? I'd love to hear from those who have used syndication model long term. I realize that most of the deals in the last 8 years have all probably been great due to huge market tailwinds.
The passiveness and quality of life aspects of syndications sound great. I guess I'm trying to quantify how delayed one's "financial freedom" target might be if they use this model as opposed to being very active by themself.