Fifty thousand dollars is a LOT of money. Nevermind fifty thousand dollars per year. I get it, but hear me out. Once you see the potential results, I strongly believe you might be more willing to put forth the effort required to get there.
I’ve seen regular people with regular salaries (even teachers!) do this and change their trajectories forever. So, as with most things in life, it’s about resourcefulness, not resources. You can do anything you put your mind to, and seeing the progression of investing in syndications year after year might help you put your mind to it.
Here’s what could happen when you invest $50,000 a year into real estate syndications:
One question that comes up most often is, which investment provides a better return? People want to know if investing in real estate properties is more lucrative or if real estate syndications are truly the best choice.
Real estate syndications’ major benefit of being a true hands-off investment, saves investors from the stress of maintenance issues, tenant complaints, and dipping cashflow. That right there can make you feel like syndications are a better deal (who wouldn’t want to avoid that stress!?).
On the other hand, with rental properties, you have to do all the legwork. That includes finding a broker and a property manager and coordinating with lenders. So, in exchange for all that hard work, you’d expect better returns, right?
Thankfully, I’ve owned and participated in both types of investments, so I’m able to honestly answer this question. So let's do a little bit of math and dive in to find our answer...
When you first learn what real estate syndications are and how passive investing works, your first question might be, “What’s the catch?”
Receiving a check in the mail for doing, seemingly, nothing sounds too good to be true. What are the hidden risks of investing in real estate syndications? What goes on behind the scenes of a real estate syndication?
This is a good thought process because it means you’re not blindly jumping in. Instead, you’re thinking critically and doing your own due diligence. Kudos to you.
What Are The Pros & Cons of Real Estate Syndications?
Just like for every purchase, investment, or decision, there are pros and cons to real estate syndications as well. Each one may matter to you … or not. It completely depends upon your investing goals, time-frame, and financial position.
If you’ve spent any time on the site at all, you’re familiar with our perspective on real estate syndications.
We think they’re awesome, that people should be interested and trying to invest in them, and we can’t wait to continue to share about them so that more people have the opportunity to learn about these types of passive investments.
However, we also know that real estate investments are a big investment and are not the perfect choice for everyone. So, here are the top four reasons why someone should NOT invest in real estate syndications.
Before you’re fully committed to and after you’ve become interested in a real estate syndication, you need to know several details about actually investing in these deals.
The process of investing in a real estate syndication is very different than picking a stock or a mutual fund online. Furthermore, unlike typical investment properties, there are hold times, barriers to entry, and a whole set of expectations that you need to know about prior to committing to a deal.
As a smart investor, you’ve got to know exactly why you’re choosing a particular investment in addition to the required credentials, the process, what’s involved, and how long you should expect to wait until payout. Guess what? You’re in luck!
That’s precisely what you’re about to read!