Syndication vs Investment propery

[Tom Grieshammer]

I have 120,000 that I want to maximize long term profits. I’m a full time teacher and swim coach so I can’t go into real estate full time. Should I invest in a syndication instead of buy my own investment property? Can I even invest in a syndication with my relatively low income as a teacher/coach. 

[Evan Polaski]

@Tom Grieshammer, you have a few options, technically:

A 506(b) syndication is open to up to 35 sophisticated investors, who do not otherwise meet the non-accredited status.  You will likely have trouble finding many of them, as they can't market investment opportunities, per se.

And even if you do find them, I would be hesitant to dive in with them, given your (presumed) low income.  As Nicholas and Don notes, these are first typically only open to accredited investors.  Second, they can be very risky investments, which you hold NO control over.  And even for accredited investors with a fair amount of experience, they are still hard to find groups that truly align with your goals.  But, they are GOOD marketers, so will make you believe you are missing the world in a sure thing.

I would say, buy your own investment property first.  Not to say this isn't without risk, but you will certainly start to learn a thing or two.  You can match the investment more to your specific goals/risk tolerance: i.e. nice property, with long-term fixed debt, or sketchy property with lots of upside, single family, 2-4 unit, etc.