Depending on the situation, it could still be worth it for SFHs especially if you have capital gains or other income you need to offset this year.  

You’ll want to check if your specific work falls under their home improvement contractor licensing, or if there are additional local permits required depending on the county.

This cushions potential value drops.Syndicator vetting: Only partner with syndicators who have a strong track record in different market conditions.Market and asset class knowledge: Understand market cycles and the specific real estate types (multifamily, industrial, etc.) you're investing in.Avoid chasing trends: Just because a market or asset is “hot” doesn’t mean it’s solid.You’re right that this approach doesn’t cap your upside, quality diversification can still generate huge returns while managing risk.Best regards,Drago

Nicholas, When vetting a syndication, every investor will do it differently because every investor has a different risk tolerance, comes from a different financial situation and has different financial goals.

I am always fully transparent and the owner in that situation is a long standing business associate that knows my character, experiences and background, strengths and weaknesses included.

With all of that in mind, I think it would really be dependent on where you see that specific market going.

There are rules and situations unique to each state and that is why you want to go with a local lender vice someone just reaching out to you telling you they can do it. 2) Better recourse if the lender screws something up: a local lender has more skin in the game so to speak as if they screw something up their name will be mud to local real estate agents in the deal.

At least with the paid off property and you get yourself into a bad situation in life you can just sell it and there’s tons of equity but if you’re ever in we leverage with a mortgage in the market goes down you won’t be able to sell without a loss so it’s simple math.

@Mindy Jensen - I’m a GC from California, specifically the SF Bay Area.

With actual cash, you just transfer it. yes, but you can still bid with lender approval - without appraisal contingency - you send in deal (app), it gets approved by lender its functionally the same as cash (except in true lightning speed situations where there is a quick auction with little time to prep but thats generally pretty rare I'd think)Right, but that's not cash or functionally the same as cash because the lender can change the terms at the last minute, as often happens with less experienced hard money lenders.