Is real estate syndication going to push out turnkey in the near future?

[Matt Mason]

I see a ton of fellow West Coast investors ready to pounce on out of state single family houses and people here on BP ready to sell them anything under the sun. It seems that these investors are long on money but short on knowledge, so they are a real target. With recent changes in legislation that real estate syndication/funds are/will be more available to the masses, I am wondering if there will be a shift in future real estate investing for out of state investing.

Crowdfunding sites like Realty Mogul and Fundrise provide a portal to accredited investors now to put up relative small amounts of money across a wide spectrum (and soon maybe everyone else) to what was formerly a somewhat secret product where you pretty much had to know the sponsor.

On the other hand, turnkey providers seem to be having more trouble finding product to turn and if interest rates rise significantly, that will be another weight on them.

This week there was a nice post on evaluating real estate syndicates on the Blog with no comments, so I wonder if the above is just a theory. http://www.biggerpockets.com/renewsblog/2014/02/18/reduce-risk-investing-in-syndicates-and-funds/

It seems turnkey benefits over syndication are:

Direct ownership of title
Easy to find as these things are marketed to a high degree
Lock in low rates with Fannie financing
Easy to understand asset - houses

However, syndicates benefits over turnkey are:

Alignment with sponsor through promote (if structured correctly)
Much easier to diversify across product types and geography
No real management responsibilities (i.e. much more passive) vs. turnkey
Ability with the crowdfunding sites to invest in smaller increments ($10k)
A turnkey is likely to be in the hole from the beginning (it is at retail and you are going to have selling costs of 8-10% so you need 8-10% appreciation just to get your money out even though you can sell whenever you want vs. a syndicate).
No liability vs. a direct owned asset like a turnkey property.

I personally favor syndicates much more (although it can be tough to find appropriate vehicles), but do people just like owning something that much or are houses just that attractive to people, because they are easier to understand?

What are your thoughts on whether we are going to see a big change when the SEC opens syndication up to non-accredited investors on a broader scale?