Originally posted by @Bryan Hancock:
I have invested in and owned all of these structuring types. There are pros and cons to each and one could argue all sorts of things given how the OP was worded. A JV could be a great investment with a solid sponsor to accompany it as could any of the other structuring types. The key is evaluating the risk-adjusted return given the skill of the sponsor, which is no easy task. Private offerings offer greater upside than exchanged-traded securities for a reason and the "tax" you pay is that they're harder to evaluate, less passive, and consume more of your valuable time.
I don't think there is a clear-cut way to compare things the way you've framed things in this post. Look for great value when you invest and try to be greedy when you identify it. Otherwise you're probably better off just investing your money passively in index funds and dollar cost averaging.
This was helpful as well. Thank you! I am looking into these options as my long-time colleagues and I are researching investing vehicles/structures that will allow us to scale easily to achieve our individual goals, together. Based on these responses and my reading as of today, a first JV, with professionals that have expertise in this approach, may be our entry point to figure things out. We can now focus on getting specific on what types of commercial multifamily or residential properties (size, class, location), individual and collective investment goals, the timeline, and then begin reaching out to realtors, lawyers, cpa's etc. Comments and critiques welcome!
