Private Money Lenders VS Syndication Investors

[Ethan Neumann]

I'm newer to multifamily... coming from the SFR space. In the residential space, using private money lenders in the second position is a very common way to fund your entry fee for seller finance or sub-to deal. At first glance, being an LP in syndication seems to be a better passive route than being a PML. The returns seem to be better, there seems to be less risk in apartments than SFRs, and you get to own a part of the asset vs just occupying a lien position on the property.

Am I missing something here?