There are many reasons, but a few of the most common “misbeliefs“ I encounter on this topic are:1) Don’t know how to or not sure how syndications work (they think they cannot qualify when they can) 2) People believe they can’t afford to do so3) Not sure how to do so without incurring unnecessary risk 4) People believe they have to “manage” it themselves 5) People believe they need higher liquidity or net worth to do so In my experience (I’m currently invested 4 apartment complexes 534 doors as an LP), my wife is invested in 1 complex 282 doors as an LP, I'm a GP in 124 doors, and working on another 200+ unit deal as a GP in San Antonio Tx... my thoughts on these common misbeliefs are below:1) Anyone that is at least a “sophisticated investor” as defined by SEC can invest into a syndication, so long as you have a pre-existing relationship with the deal sponsor.

@J R.In all places where we have done business, a contractor can place a lien on a property for work completed for which s/he has not been paid, even if ownership of the property transfers.If you are aware of the lien prior to Close and the title insurance coming into effect, it quite likely will be deemed pre-existing and not covered.  

You may find pre existing liens, etc.

We ere thinking hardwood where it pre-existed or made sense and linoleum elsewhere.

The pre-existing nature of the banking relationship helps tremendously.And even with these favorable conditions, often times they are asked to put more than 25% down and there is a limit to the number of properties those lenders will hold.

We reached out to a local commercial guy who we have pre existing connections with and we got hit with questions about title commitment, easement, and survey. 

I was told that mold damage was some sort of pre-existing damage and that they wont cover it.

I have a multi-year contract with a pest control service because of pre-existing damage and the potential for reoccurance.

I know there were not any pre-existing arrangements before the purchase of the property (estoppel).I'm thinking of establishing the "common areas are for common use, so work out an arrangement where everyone is happy."

It's also better for the "pre-existing relationship" requirement specially if you're dealing with non accredited investors.In parallel, you need to look for great deals.