Creating a portfolio of Syndications as limited partner only

[Jacob Morris]

This might end up being a long post and hoping for some interesting conversation....... here is the bottom line.... Do you think we can build a strong portfolio with just syndication deals being a limited partner.

So lets get started. My wife and I are both active duty and moving every 3-ish years. We are 30 and 28 years old. No Debt. We are trying to get our hands involved in a little bit of everything to see what we want to focus on once we get back from Korea and in the states. We have done one syndication deal so far. Have an offer accepted on a flip that we are partnering with. Have another offer accepted on a duplex that we are partnering with. Alot of moving parts for us as a new investors. The buy and hold and the syndication have simliar ROI around 16-20% (technically the buy& hold return should be infinate after the BRRRR is complete). The flip has a much higher ROI but more risk. We are also hoping to go back to school when we get back in the states. wife-CRNA school. Me- MHA/MBA program.

Back to the original question: Do you guys think it is possible to create a large amount of wealth from just Syndication deals? My thoughts: Very passive.... I mean very much so as a limit partner investor in a syndication.

Pro/cons of syndications (just my thoughts please comment about yours)

Pro: very passive allowing you to focus on creating more income or other objectives such as going back to school/ fixed rate of return/ equity at time of sale/ % of initial investment back within a few years at refinance. Turn around and reinvest into a new syndication. no liability

Con: not in control of anything that is done with the property. money is tied up for up to 10 years and might get a lower then desired % amount at refinance 2-3 years in. Not able to leverage your money.

Pro/cons of buy and hold residential 1-4 units ( again just out thoughts please talk about yours)

pro: LEVERAGE. more control of how property is ran. potential infinate return on investment if the BRRRR is good enough.

con: value probably would fluctuate more than apartment complexs. turnover hurts NOI more. Liability. repairs hurt NOI more.

so....what are your thoughts about building a decent retirement through syndications?

Know anyone who lives off the income just from syndications? I hope this will turn into a decent conversation.