My biggest mental hurdle is whether the fees a syndicator (rightfully) charges makes it so that passive investors only net marginal returns.

As I mentally plan out my day tomorrow, though, there is one thing I need to do tonight.     

This is why I look very carefully at city and neighborhood demographics, yes including race, when investing.Would you want to invest in area populated by people who have this type of mental programming once the cuts happen?

I was raised with a work/pay bills/save a little /work/pay bills/save a little mentality... taught not to invest or start a business because it was 'too risky'... we almost starved to death.Then I ran across Rich Kid/Smart Kid and Richest Man in Babylon-- completely changed my mindset.Spent *3 years* learning about real estate and don't regret a minute.

With this kind of mentality, it's hard for me to wrap my mind around investing millions for such a small pay out (percentage-wise).

They also aspire to the E-Myth mentality.

I had lived out of the US for over 2 decades with that same type of mentality in that culture.  

I would argue that there are inherent conflicts of interest with the current incentive structure of real estate agents on both the traditional sell, and buy side.During situations where an agent is legitimately asking whether it's a good time trade-off to be showing properties, again whether rational or not, I think some folks believe that taking this approach produces a '**** or get off the pot' kind of mentality on the part of their client. 

As you get more experience the margins will grow. one good thing with the market slowing down in many areas.. this CRAZY herd mentality of rushing to buy these homes with non refundable up front deposits..

Have to get past the mentality that not every market will be like that