Passive RE investment diversification

[Ashish Rizal]

Brand new to BP, just getting started with RE investment and am looking to invest in multifamily, duplex/triplex eventually once I have solid understanding of it. In the meantime, I would like to have some passive investment going on to generate cash flow. I am considering investing in syndication deals and some into REITs (for dividends) . Is it a good strategy to diversify? 

Also, how would one vet for the sponsors running syndication with good returns? 

Any thoughts or insights would be greatly appreciated.

TIA

[Reece Iovine]

It depends on what returns you hope to see. I will never invest in REITs because the returns are abysmal compared to what I can make full time or even part time investing in rental property here in columbus ohio. Syndications are great for someone that wants to remain a passive investor or has too much money and needs to invest in bigger assets that they can't handle with their team. I like control of my money therefore I won't give it to a GP to manage in a syndication. However if you lack time either of these options are better than not investing in real estate at all :)