All Forum Posts by: Ashish Rizal

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 :)

Agreed with everything above.  I will add that diversification is almost always recommended and is a tenant of modern portfolio theory. But...you do what you can with what you have and there are many ways to diversify.  There is nothing wrong w/ having some tactical asset allocation in your portfolio (e.g. undiversified, "bets") and you can diversify by other asset classes.  So, if you have a small cash reserve (emergency fund) and a 401k, and maybe are investing in some equities (mutual funds, stocks, ETF)...then maybe you only have "X" amount for real estate and what to focus on a single play/strategy/deal that you believe in.

I really like the approach @Joseph Firmin lays out and I think a lot of individuals get overwhelmed - "wait that sounds like a lot of work/time...I have to do that for every deal?".  So, if you are limited in time or money, you may want to lay out a logical timeline for due diligence/research and really dig into a potential investment and make your "play".  Assuming your are reasonably invested elsewhere.

All the best!

Caveat: I am not a financial planner, CFP, or anything like that.

Hi @Ashish Rizal, always good to diversify your holdings in different asset classes and investments. To vet sponsors, look at their partners and track record. With syndication it comes down to you trusting the sponsor team and understanding the individual opportunity itself, mitigating risk where you can and ensure you are asking the right questions of the sponsor team. Make sure to take a look at things like whether the business plan has multiple exit strategies, whether there are signs of conservative underwriting, and double-check whether the proposed business plan makes sense given the asset class, submarket, and current economic cycle. Research market trends in job and population growth. Review minimum investment requirements, projected hold time, and projected returns. Finally, attend the investor webinar and ask tough questions.

Awesome. Thank you @Joseph Firmin. This will definitely help me get started to analyze a deal and list out questions to ask during webinar. Thanks again!