Sindicator vs DYI

[Hernan Guelman]

I have 2 main paths I am evaluating:

1/ Buying into a company that does property pool. Where they have multiple projects (houses) they buy to rent or buy to fix and flip. That is a 5 years more or less engagement.

2/ Buying into a sponser project where a commercial property is bought/fixed/rented etc'. this is a syndication, and again, it is a pool of investors, but unlike #1 it is one big property.

3/ use a turn key investment property

4/ buy locally and do it myself.

I know #4 pros/cons, but I don't feel I know enough how to evaluate the pros/cons between 1 and 2. For 2, I found companies such as praxcap but how can I be sure it is not too risky to put 50-100K in one small private company?

For #3, is there a way to make profit when you let a 3rd party do basically everything for you?

[Brian Burke]

Originally posted by @Jeff Greenberg:

That question does fit the forum, but I have not heard of the company.  

 @Jeff Greenberg, you haven't heard of Praxis Capital?  Now I'm convinced that no one looks at the forum signatures!  LOL

@Jerry W., thanks for the shout-out, however, I can't provide an unbiased answer to @Csmba Siff's question because he's asking about my company so in this rare instance I should be the one guy who sits this thread out, I don't want to turn this discussion into a solicitation.

That said, Csmba, no matter which option you decide to go with it has to be a fit to your goals. If your goal is to be an active real estate investor and call all of the shots, option 4 is your best fit.

If you want to be semi-active and call some of the shots, option 3 may be a good fit.

If you are looking to add real estate to your investment portfolio but don't want to be active (similar to the stock you own in companies managed by others or mutual funds that manage portfolios of stocks) then option 1 or 2 may be a good fit if you align yourself with a good sponsor.

If you choose options 1 or 2, whether you choose to do that with Praxis or any other sponsor, the most important component is to thoroughly research the company.  Inquiring as to track record, how the sponsor's projected performance compares to actual performance, and learning about how they approach a potential investment property are all very important.

If you are investing in a turnkey or a syndication or blind pool, there is one added risk that you don't have when you invest directly:  the sponsor.  That component has to be approached with the same care that you'd take when selecting a property to purchase directly.

...and let me not forget--welcome to BP!  You came to the right place to get feedback on your questions.