Is real estate syndication worth the wait?

[David Stelzer]

Hi all. I'm looking at syndication opportunities, and it just doesn't seem worth it. For a minimum investment of $25k, I can get an IRR after sale of nearly 20% in 7 years. That's about $5k. I would also get a share of the rents averaging about 8.5% of my investment (roughly 2500 per year). In total it would take me 7 years to make an additional $20k from my initial $25k ($25k would turn into $40k if they hit all the numbers). To me this seems like a very long time to tie up $25k with no real equity, and not receiving a true multiple on my investment. I feel like I could be liquid if I did small deals with that money and took on the debt of the mortgage. What are peoples' thoughts around this? I can see the benefit of being the syndicator with all the fees, but I feel like you need to partner with an experienced GP to get started there.