Syndicate or Buy privately ?

[Michael L Sakey]

So here is my question...

What do people think is a quicker way to financial freedom-

Using 100k cash to buy in/invest in a syndicated commercial deal

or use it to brrrr,

or use it to as a down payment on two turn key rentals?

[Ian Ippolito]

@Michael L Sakey

$100k cash would be considered very "cash rich" to the average person on the street. But unfortunately in the world of real estate it's fairly "cash poor".

The advantage of BRRR when you are cash poor is that you can put in sweat equity and if you pull it off successfully then you make more than you would through either a syndication or turnkey rental. So if your goal is which offers the quickest potential route to making the most money, then that is most likely it for you.

However, potential is not the same as actuality. The disadvantage of BRRR is that it takes a lot of time, self-education, work and effort. And if you are just starting out, you may make some expensive mistakes. Also, you may not make any mistakes but just have the bad luck of the market turning on you, or a lot of unexpected capital expenditures, etc.. If any of those happen, you would've been better off choosing an experienced syndicator operator who has a lot more experience than you could ever hope to have, and perhaps even diversified into a more properties than you could on your own. But of course, this comes with a lower return.

So really, the best answer for you will depend on your risk tolerance and how much time and effort you are willing to put into things.