Syndicators do this because most passive investors are not sophisticated enough to realize the "security" of the preferred return means they usually are giving up the potential for massive returns if the deal does well.This next comment would apply for all syndication.  

I am looking to partner with someone on a project in abilene.

Let me preface by saying I haven't tried this before, but I'm considering it for my next project.

Go for projects that needs rehabs and get into flips/BRRRRs. 

One purchased in 2023 and one in 2024, both were rehab projects.

The reasons cited for the market not following suit this time are concerns that increasing GDP, especially in Q4 of 2024, and policy changes such as tariffs could lead to a resurgence of inflation and thus a change in the Fed’s projections, with there being 150bps of variance between certain Fed members projections (Source).

I'm not currently looking for a new project but I'm sure I know someone who is.Jayme

Hey Jimmy, sounds like a solid project with good cash flow potential.

Quote from @Duane Williams: We’re a family-owned fix-and-flip company operating in San Antonio, TX, and Northern Virginia, managing everything in-house—from wholesale acquisitions to rehab & construction (with our own project managers and crews) to listing & selling through our licensed brokerage. 

Purchase price: $62,000 Cash invested: $60,000 Project in progress: Off market dealPurchase: $62,000Rehab: $60,000ARV: $165,000 What made you interested in investing in this type of deal?