However, one thing I would add is that, when vetting a Sponsor/deal, their acknowledgement and analysis of a "bad" situation is certainly welcome.For example, a sensitivity analysis that supports say a 2-3% return even if occupancy and rents don't come anywhere near projections, is still relatively attractive given potential returns on other investment vehicles.If a Sponsor you're considering is all rainbows and sunshine, I would take that as a red flag and move on.

Plus 50 vendor sponsors plus many other attendees.  

There's a similar strategy in the world of real state investing in terms of other people (called syndicators or sponsors) do all the work and you as an equity partner sit back and collect the dividend checks.

Hard to say what would work.Each individual has a different risk tolerance, amount of being passive versus active, needs cash flow today versus more equity growth on the back end, certain time horizon to stay in the investment,etc.Only the individual can decide what is most important and the best fit through research and self discovery.For me as a syndicator and sponsor I like deals where there is big equity gain on the back end for my investors and myself.

A 401k Plan is a tax advantaged vehicle that is sponsored by a business.

After some thinking, I was initially wanting to sponsor a real estate investment deal via private capital funding.

In one case the sponsors are in their 50s.

On the same note, starting out you probably will need a deal first, I recommend finding a deal and partnering with an experienced sponsor, be on the GP side with them and learn while growing your investor pool.

We have been reading post after post for the past two years from (1) members who are fed up with the market (2) members who are having a hard time starting in a hot market and (3) members who have highly appreciated properties but don't have an alternative investment option if they were to sell or exchange.Deal flow is king in this market and you have to (1) put hundreds of deals through the funnel via marketing and networking or (2) you have to invest with someone who has it.I made a decision two years ago to do more of the latter...to start heavily vetting passive opportunities with experienced sponsors who have mature deal flow pipelines (i.e. deep broker relationships, industry leaders, full time staff dedicated to deal flow, consistent off-market properties)...while still casually vetting direct owned opportunities. 

Akash, since you don't personally have the experience with multifamily, another option is to hire a syndicator/crowdfunding sponsor to do it for you.