Buy & Hold or Syndication

[Nathan Olds]

Hello all. I am new to the real estate game and am trying to decide between Buy and Hold strategy of multifamily properties and being a passive investor with Syndication. 

I currently own 1 property, a duplex, which I am house hacking. My original strategy was to buy local multifamily properties (Palm Beach county / South Florida) one at a time and buy and hold indefinitely to build equity and have positive cashflow as supplemental income. I have a well paying W-2 job which I am in no rush to quit, both because I enjoy the work and I like having the additional steady income. Recently I spoke with several investors who do syndications and this sounds very attractive because of the passiveness and the risk mitigation. 

A couple questions to start the conversation:

     -How would the returns compare with a buy and hold strategy over 30-40 years and a series of syndications reinvesting the gains over the same time period? 

     -Is it worth it to move from a limited partner to a general partner to a sponsor as I gain experience if I choose the syndication route or just stick to being a limited partner while working a W-2? 

     -What are some additional risks and factors that i should consider with both strategies? 

[Mike Dymski]

They are both good strategies but they meet different goals.  Investing in passive syndications won't work if you want control.  Investing in buy and hold won't work if you want to be passive.  Figure out whether you want to be active or passive first...and then decide on the strategy.

Returns can be higher with active investing because you are not splitting profits (this assumes we make good acquisitions, which is a big assumption).

Syndicating opportunities yourself is a job (deal sourcing, investor relations, asset management).