This is an awesome discussion! I had the same questions and concerns. I now invest in syndicated deals and I love it.
I love real estate and I want that asset class. However, I fear owning a rental property that only has a single tenant. If I fail to lease it up, I am on the hook for the mortgage that month. I wanted large numbers of doors but didn't have the liquidity to get those doors and have the benefits of high volume. I wanted my cake and to eat it too!
Syndication allows me to invest with the big boys and enjoy their returns and the benefits of high volume. I will always invest in syndications because I get the passive income without the sweat equity of building my own team AND I get into deals I would never sniff on my own.
I lose out on some of the return but I literally write a check once and read a monthly management report the rest of the investment. The property management and financials are all handled by the the group I am connected with. That is all I MUST do, I choose to do more and ask questions of the asset manager but I don't NEED to. In return I get an average of 8-10% at the start of the investment and a 10% average return over the hold. I recognize I can get more doing it myself, but I may value my time at a higher rate than others and I am happy with the return.
It was finding my first syndication and my love of it that resulted in me going into real estate investment and management full time.
I am hooked and will talk it with anyone any time! Love reading everyone's answers!
