Need to research both sponsor and investment thoroughly, and diversification is key so one disaster beyond your control doesn’t put a dent so big in your net worth that it sets you back 10 years.

For my real estate clients, I don't invest their funds in any real estate investment vehicles for the obvious reason of diversification. 

Investing in real estate, particularly multifamily properties, offers the potential for stable income streams and long-term appreciation, enhancing diversification and reducing overall investment risk.It's important to know that the quality of syndication teams can vary, so I would advise you to educate yourself and seek insights from experienced investors who have prior experience in investing in syndications.

That said, depending on how concentrated you are in one asset/strategy, diversification can be a wise move.

But the diversification of both is very important to me.

I invest about 1-2x/year in syndications but have noted that the minimums have risen steadily over the past couple of years, resulting in being priced out of many funds and lacking in diversification of syndicated deals. 

I don't think there are downsides - if it's a group LLC, it adds some friction in the form of K1s and decision making, but the main benefits of group investing are reducing minimums, increasing diversification and becoming a better investor because you are learning from your peers as you go!

problem with BP is most answer are FOMO.You have 100k or 30 million, invest LTR in OhioYou have 1 mil to 10 mil, invest STR in SmokySo much no diversification.

Pete, investors may be willing to forgo short-term cash flow for the chance at impressive capital gains.Portfolio diversification: For investors with a diverse portfolio, a high-appreciating property in Tampa/St.

Once you figure out whether you want to be passive or active you'll need to decide what asset classes make the most sense for you.The best way to figure out the best fit for you is to educate yourself on the various asset classes and decide which ones you think are the most sustainable investment depending on your timeline, your risk profile, your diversification needs, and your thoughts about the future of the economy and each asset class.