In a super simplified way I look at crowdfunding very similar to a RIET you would buy on a stock market. It is a share of ownership in a large portfolio of real estate properties, the difference is they are typically private (not sold on the stock exchange). I use Fundrise and have been very happy with it. I set my goals (appreciation/cashflow etc) and then my cash gets automatically spread out across deals that are in line with those goals. I have very little control, but it's extremely passive. I get a K1 tax form from them and file it pretty much like you would any other dividends. You can redeem your investments (shares) but it takes time, it's far less liquid than a publicly traded RIET would be.
Syndication is more like a partnership on a specific deal. You could be the managing partner and be putting the deal together or you could be more of a silent partner and just put in cash. In crowdfunding you won't be on the deed of the properties personally, where as in syndicating my understanding is that you can be. On a syndication deal you will agree to an exit strategy right from the get-go. It could be a short term investment with the intent of increasing NOI and refinancing to pay the investors back, or it could be a long term hold. It just depends on how the deal is structured.
Syndication typically has a much higher barrier for entry because of the added costs associated with setting one up. You can open a Fundrise account for $500, but It's not real common to see a syndication deal with less than a $50,000 buy in. However, If the deal is right there is a lot more upside in syndications. With more upside, comes a different degree of risk. With crowdfunding you might have $2000 spread across 40 properties in 20 different markets, if one market is doing terrible, it isn't a devastating loss. Where as if that specific market you are syndicating an apartment complex in has trouble it can be an emotional experience.
