Imagine with me, that your workday began with the usual routine, but halfway through your morning, you received the news you’d been laid off.

For most Americans, that means zero income starting tomorrow morning.

Now, let’s pretend that during your employment, you leveraged your money.

The rich don’t work for money. They make their money work for them. – Robert Kiyosaki

Three Types of Income

Investing in Stocks vs. Real Estate

Historically, the stock market returns about 8% annually, which means

$100,000 would produce roughly $8,000 per year. That’s only $667 per month.

To replace an income of $3,000 per month, you’d need $36,000 per year, which would be 8% of $450,000.

However, with real estate, $100,000 could buy a $400,000 rental home. How?

The bank brings $300,000 to the table.

You put in 25%, the bank puts in 75%, and you earn 100% of the profits.

A $400,000 home renting for $3,600 with a mortgage of $2,100 would net you $1,500 per month. Theoretically, 2 investments of this size could replace a $3,000 monthly income.

The total rental income plus $25,000 in additional equity (based on 5% annual appreciation) equals $43,000, or 43% return in just one year.

But I Don’t Want to Be a Landlord

The numbers look enticing, but being a landlord does not.

This is where, instead, you join a small team to acquire real estate. When investing $100,000 in real estate syndication, it’s feasible to earn

$8,000 per year (8%), similar to the stock market.

However, the real opportunity lies in the sale of the asset. Syndications hold the property for about 5 years. During this time, building improvements are made and the land market value typically rises.

Upon the sale, you receive $160,000 ($60,000 in profit). This, plus the passive income of $8,000 per year (totaling $40,000), equals $200,000, which is a 20% average annual return.

If, while employed, you’re able to create passive income, you’ll be less stressed when facing a layoff. You may even find yourself celebrating unemployment.

It used to be that you went to college, got a good job with a pension, and rode that wave until the day you retired. Things aren’t like that anymore and we’re 100% individually responsible for putting away savings SO THAT we can retire.

Not only are employer-paid pensions practically non-existent, but it’s not common anymore to stay at a single company or even remain in a single career path long term. For this reason, many of us have old, partially funded, half-forgotten retirement accounts scattered throughout our trail of previous employers.

If this sounds familiar, you’re going to want to declutter your retirement accounts ASAP by rolling each one over into a single, consolidated account.

Red Rover Rollover

You don’t want to be on the verge of retirement attempting to remember all the way back to your 20s and 30s as to who you worked for and what financial company managed that 401K, 403b, or IRA. What a disaster!

Trust me, while some of that is moderately fresh in your mind, you’re going to want to consolidate and rollover all your prior retirement accounts into a single, manageable account you can keep track of easily.

It’s a beating, but if you do what it takes now – find all the accounts, see all the notaries, file all the paperwork – your future self (and your family) will thank you SO much.

Investing in Real Estate with Retirement Funds

Here’s where you get to the good stuff. Once you can see the value of your combined retirement accounts and their lackluster performance, you become interested in investment opportunities that have the potential to help you accelerate your earnings.

Did you know you can use your retirement funds to invest in real estate? Yup! Sure can!

There are absolutely some rules you need to follow in order to do this, but first, let’s walk through a couple of hypothetical scenarios to see why you might be interested in investing in real estate with your retirement savings.

Hypothetical Situation 1: Keep My Money Where It Is

First, let’s pretend you have $100,000 in your consolidated retirement account. And let’s say that over the next few decades, you earn about 7% in returns annually. You add $10,000 per year to the account with compounding growth. In 30 years, when you are retirement age, what do you think you’ll have?

$1.8 million

Not a bad deal. So, you’re thinking, I can handle that, right?

Well, let’s add inflation into the mix. Inflation is about 3.22% per year, which means the cost of living doubles every 22 years.

The 1.8 million that sounds like boo-coo bills right now equates to less than $900,000 in today’s money. Living out retirement on only $900,000 is downright scary.

Enter: The Self-Directed IRA

With a self-directed IRA, you have infinitely more control over the types of investments you’re allowed to make with your retirement money. No more being limited to certain mutual funds, stocks, and bonds, although you can certainly invest in those if you want.

Of course, there are limits – you can’t invest in a vacation home for yourself, for example. But you CAN invest in commercial real estate syndications. These are passive investments where you direct the custodian of your self-directed IRA account to invest the funds in a certain deal on your behalf. Any interest/profit earned from the syndication go right back into your retirement account and build your retirement savings.

Hypothetical Situation 2: Invest My Money In Real Estate Syndications

Now, let’s pretend that the same $100,000 was in a self-directed IRA account, invested in real estate syndications. You invest in deals with a 5-year hold time and a 2x equity multiple, which means over the course of 5 years, your initial investment doubles (roughly 20% annual returns).

To be clear, that means in 5 years, your $100,000 could be $ 200,000 and 30 years from now, your self-directed IRA could value about $6.4 million. Then, don’t forget about the $10,000 in contributions each year, like in hypothetical scenario 1. Add those in and you’d have over $9.5 million at retirement.

*Side note: Being able to contribute $10,000 per year assumes that your employer’s 401K allows in-service rollovers. If that is not allowed, you may be limited to contributing $5,500 per year which makes the total in your account in 30 years around $7.4 million. Still not a bad deal at all.

In Summary

Comparing $9.4 million (or $7.4 million if your contributions were limited) to $1.8 million is a no-brainer.

The impact on your future life and your kids’ future is nearly unimaginable, but add that to the impact your 30 years of real estate investments made on thousands of families whose apartments and communities you helped improve.

I’d choose real estate every time.

The thing is, you can’t make this choice when you’re 65. This is a choice you have to make now. Even if you procrastinate another 5 years, you’re missing out on hundreds of thousands of dollars.

Do it for your future self, for your family, for your children. The sea of paperwork is worth it to prevent your 70-year-old self and your loved ones from experiencing financial stress and strained relationships because of money. Learn the lingo, and do what it takes today so you can live life on your own terms when it matters most.

Making any big investment decision shouldn’t be taken lightly, which is why it’s important to be on the same page with your spouse when it comes to finances.

Every person develops a different internal money story and feelings about spending, saving, and investing habits based on childhood and other life experiences. This is why one spouse may be open and adventurous, and the other may be risk-averse.

Making decisions about your financial strategy together is an important part of your relationship, which is an important component of your life.

This article will give you a behind-the-scenes sneak peek into the stork of one of our New Level Investor Club members and how she helped her husband get on board with the idea of investing passively in real estate syndications.

Here’s Ashley’s story in her own words.

Ashley’s story

When I first learned about investing in apartment syndications, my husband and I were, fortunately, on the same page about most personal subjects, and among them, personal finances.

This is largely because I’d spent months spreadsheeting our entire financial life during my spare time and had our family’s income and balance sheet tracked to the penny. Our plan was for me to stay home with the kids, so it was important for us to budget toward that lifestyle.

Beyond my dedication to Excel, we talk about money frequently in an effort to plan for the future we both want, where we can go on vacations often, for example. For us, it’s not just about creating additional cash flow each month, but also to accelerate our wealth building so we aren’t tied to my husband’s salary.

We dreamed of him moving on to a less stressful job – to enjoying life more. Can’t you just imagine the smile on his face when he thinks of this?

When our daughter began preschool at a steep price tag every month (thousands!), we were spurred into action. Our existing investments needed to create cash flow.

I spent hours educating myself about real estate syndications and I think my husband was impressed and maybe inspired by my dedication and drive to learn. Each night I’d pop in earbuds after the kids went to bed so I could listen to Bigger Pockets and other real estate podcasts while folding laundry. He also saw me pouring over blog posts, crunching numbers, and constantly on the phone with people from whom I could learn.

Each time I learned something mind-blowing, I’d stop right away and share it with him. That helped him learn alongside me and to trust what I would soon present as my master plan. I wanted him to see that I’d done extensive research and analysis toward generating passive income from group investments and that this was no split-decision.

My husband is more risk-averse than I am, so he had a lot of questions. It was a great exercise for both of us to learn about capital preservation, buffering for market risk, and liquidity.

We were able to take time pondering our risk tolerance and developing a deeper understanding of real estate syndications. Although I have plenty of autonomy, we talk about what we’re doing with our money before it happens, so he’s comfortable with our journey and investments.

He knows we’re in this together and neither party gets to “blame” the other for things that go wrong, because we both had ample opportunities throughout the process to ask questions, express concerns, and talk through risk factors.

So far, here are the main highlights of our investing journey:

• We stay motivated by dreaming together about what investing can do for us.
• Using real dollar amounts in our projections has helped us to truly see how we can take out lives to the next level and understand the changes we have to make to get there.
• I’ve been able to earn credibility as a solid investment partner throughout the process by committing to research, education, and vetting the choices presented.
• Consistent and frequent communication is key to staying on the same page and truly sharing our successes and failures along the way.

Conclusion and Takeaways

Passive investing is now a big part of Ashley and her husband’s financial strategy and the passive income they’ve built has helped them defy the extremely high cost of living in their city.

Ashley was so open and transparent about their financial journey toward apartment syndications, and it’s clear she took the lead while making sure to keep her husband in the loop every step of the way.

A valuable snippet of her story is where she’d stop and share mind-blowing facts with her husband immediately. Those moments of excitement and discovery can serve to not only learn together but invigorate your relationship overall.

Real estate investing is not a race, nor is it something that should be a point of contention in your relationship. Planning your finances and dreaming about your future should be an adventure you both WANT to take together. Plan for ample time to learn and grow together, have fun during the process, and you’ll be a passive income power couple in no time!

Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment. Stating simply, it is a measure of the level of uncertainty of achieving the returns as per the expectations of the investor.

I am sure you have read the investment warnings – Past performance is no guarantee of future results or There are no guarantees when it comes to investing.

Let’s take a close look at investing in stocks versus real estate, the four basic risks of investing, how commercial multifamily real estate investments mitigate risk, and why the stock market can be much riskier than real estate.

The key is not to look for investments that are risk-free (that doesn’t exist), but to understand the risks thoroughly, determine your threshold for risk, and ensure that you’re doing everything you can to mitigate risk.

Risk #1 – Market Correction

Stock Market

One of the most common fears and possibly the biggest reason would-be investors remain on the sidelines is for fear of a sudden market correction.

During a downturn, investors may exit quickly (which only solidifies their losses). Others aim to accept short-term losses in exchange for long-term gains. Historically, the market bounces back, but clinging to that “trust” is challenging during the downward trend.

Multifamily Real Estate Investments

Recessions are sometimes good for commercial multifamily real estate investments, especially for workforce housing.

In good times, incomes and savings rates are higher, which means more people tend to move up to class A (luxury) apartments.

When faced with layoffs or pay cuts, homeowners may sell, and renters of class A apartments may downgrade to more affordable apartments (class B or C).

Hence, during a recession, demand for apartments actually tends to go up, thereby decreasing the risk.

Risk #2 – Competition

Stock Market

When Netflix stormed the scene, they beat out Blockbuster because not only did they target the same audience, but they also got ahead of the technology and consumer trends.

Consumers don’t have insight into technology development or companies’ operations. Thus, new competitors can have a significant impact on investment returns.

Multifamily Real Estate Investments

Multifamily competitors don’t just spring up out of nowhere, because space, zoning, and permits are limited. When new apartments are built, they’re always class A (i.e. newer luxury tier) apartment buildings.

Since the demand for workforce and affordable housing is on the rise, the risk of having high vacancy in well-maintained class B and C apartment buildings is fairly low.

Risk #3 – Consumer Behavior

companies who create products for people to use. Facebook, iPhones, Happy Meals, and soap are all consumable products.

However, it’s impossible to predict the term length of those products’ and companies’ popularity. Blockbuster had a long reign, but when technology and consumer behavior changed, the company stagnated, dragging investors down with it.

Multifamily Real Estate Investments

When you invest in real estate, you’re investing in a basic human need that will never go away: the need for shelter. As long as humans have existed, we’ve required a roof over our heads, and that need has only strengthened over time, especially with rising population trends.

Risk #4 – Lack of Control and Transparency

Stock Market

Investing in stocks is like buying a train ticket. The train is leaving, with or without you. Whether you’re on board or not is up to you.

When the market is sailing upward, the ride is smooth and exciting. During a correction, a terrible, helpless feeling takes over. The conductor (CEO) is unreachable and you better buckle up.

Multifamily Real Estate Investments

When you invest in a real estate syndication, you know exactly who the deal sponsor is, and you can reach out directly to ask questions and provide feedback.

Further, when you invest in a solid syndication, you can be assured that there are multiple buffers in place to protect investor capital, such as reserves, insurance, and experienced professionals to handle the unexpected.

Plus, with monthly and quarterly updates, you have ongoing transparency into each deal.

Conclusion

There’s certainly no one “right” way to invest. The key is to invest. Period.

Understand the risks going in, and just do it. Because that money you see sitting in your savings account? It’s losing value (because of inflation) with every passing second.

And if someone offers you a “Risk Free” investment or a “Guaranteed” return, RUN !!

Once you decide to dive into the real estate investing world, it won’t be long before you hear the term “Accredited Investor.” Once you notice how many passive commercial real estate or crowdfunded investment opportunities are publicly advertised and therefore limited to accredited investors, you may get curious.

Even if you’re a total newbie, it’s important to know the difference between a sophisticated investor and an accredited investor and if you’re one of them.

Neither of these titles requires an application or an approval process. You can find out whether you’re an accredited investor based on a few simple criteria.

What to Look For

To be an accredited investor, you must:

1. Have had an annual income of $200,000 (or $300,000 for joint income) for the past two years, and expect to earn the same or higher income this year.

OR

• Have a net worth of over $1 million, not counting your primary home.

It May Help to Run Through Examples

Meet Vicki

Vicki has had a corporate career for 10 years and is single. She just got a raise 2 months ago and now makes $200,000 per year. Vicki’s primary home is worth $1.5 million. She has

$700,000 in her 401K and $350,000 between her savings and a few brokerage accounts. She owes $100,000 to student loans.

Is Vicki an Accredited Investor?

Even though Vicki currently makes $200,000 and has reason to believe she will continue making that amount or more in the coming year, her annual income over the past two years has been below the $200,000 criteria.

Vicki’s net worth is: $700,000 (401K) + $350,000 (savings and brokerage accounts) – $100,000 (student loans) = $950,000,

Since her net worth is just under the $1 million requirement, Vicki is a non-accredited investor.

Zoey & Evan

Zoey is a physician and earns $285,000 per year. Evan is a stay-at-home dad, so he earns no income. Their primary home is valued at $800,000. They bought a single-family rental home for

$500,000 and have a $200,000 balance on it. They have $250,000 in savings, plus $600,000 in retirement. Evan recently received $250,000 in inheritance.

Are Zoey & Evan Accredited Investors?

Based on income alone, they do not qualify, since their joint income is below $300,000. However, excluding their primary residence, their net worth is…

$500,000 (single family rental) – $200,000 (balance owed on single family rental) + $250,000 (savings) + $600,000 (retirement) + $250,000 (inheritance) = $1.4 million, which is above the $1 million threshold.

Because they meet one of the two criteria, Zoey and Evan are accredited investors. Woohoo!

What Are the Perks?

The main perk of being an accredited investor is access to more deals. Why is this? Well, in the eyes of the SEC, being an accredited investor means that you are savvy enough to have figured out how to accumulate some wealth. Thus, more investment opportunities are open to you, since you are in a better position to take on risk.

If you’re a non-accredited investor who happens to love real estate, there are still plenty of investment opportunities available, including passive investments through real estate syndications. However, since SEC regulations do not allow investments for non-accredited investors to be publicly advertised, you may just have to search harder to find them.

When you first begin to consider real estate syndication as an investment option, it can feel lonely, intimidating, or even like you’re going in blindfolded.

I personally experienced fears around investing in a property I’d never seen, concern about how I’d get my money back, and doubt around the inability to log into an account and see my money.

These fears were addressed head-on through research. Every article I read and every conversation I had built my certainty until I began to feel confident toward taking the plunge.

If you’re considering your first syndication and feeling hesitant, I recommend doing your research, connecting with other investors, reading through previous deals, and taking your time.

Do Your Research

The best way to build your investing confidence is through self-education and research. Listen to podcasts, read books, and find websites on real estate.

Books:

Rich Dad, Poor Dad by Robert Kiyosaki

It’s a Whole New Business by Gene Trowbridge

Principles of Real Estate Syndication by Samuel Freshman

Podcasts:

BiggerPockets Podcast

Best Real Estate Investing Advice Ever with Joe Fairless The Real Wealth Show with Kathy Fettke

Ask Questions

Relevant Facebook groups and forums like BiggerPockets can help you learn what questions you should be asking.

It’s likely that other people have asked about your same concerns and, just by reading through the forum’s questions and answers, you’ll gain clarity.

Remember there are no dumb questions and that you have the right to be diligent about gathering answers to your concerns.

Connect with Other Investors

A successful investor needs a supportive community, and considering that syndication is a group investment, you’ll want to get networking.

Any new investors will share similar anxieties, questions, confusion, and excitement. Experienced investors can provide invaluable firsthand accounts of their experience with various projects and sponsors.

Find other investors through online forums like BiggerPockets, local networking events, or by asking sponsors if they’ll connect you to their current investors.

Review Previous Deals

Finding comfort with financial projections, summary data, and investment lingo may feel overwhelming.

As you review more investment summaries, you’ll start to understand the flow of the deal packages, how each sponsor communicates, and exactly which investments interest you.

Take Your Time

Each new investment opportunity fills up quickly. This can make new investors panic and start to believe they are missing the best deals.

Remember, there will always be another opportunity.

Allow yourself time to complete the steps laid out here, so that when you make your syndication choice, you are confident about every step.

Considering Everything

If you take nothing else from this article, remember it’s completely normal to feel skeptical, anxious, and even timid when making your first syndication commitment.

The ability to take action is what separates the successful from those who give up.

Your first real estate syndication deal is a huge milestone in your investing journey, and, even though your head might be spinning now, this is a time to savor.

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, over time, I’ve developed a portfolio containing both types of investments, so I’m able to honestly answer this question.

Real Estate Syndication

First let’s review what a $50,000 real estate syndication deal would look like cashflow- wise, just so we have a comparable reference.

If I were to invest $50,000 into a real estate syndication with an 8% return, that equates about $333 per month in cash flow.

$50,000 x 8%= $4,000 / 12 months = $333

If I could make $333 per month with a 50K investment in a real estate syndication, then a real estate rental that requires sweat equity would need to provide me more than $333 each month in order to be worth it overall.

Rental Real Estate

Now, let’s have a look at one of my rental properties.

A great example to work from is my four-plex in Alabama that cost $240,000 at the time of purchase. Each of the four units rent for between $600 – $700 a month. I put

$50,000 down and wound up with mortgage payments around $1,350 a month. If you add up taxes and insurance, our monthly obligation comes out to $1,731 a month.

The whole point of owning rental property is that the rent you earn is greater than the mortgage and bills you owe on the property. In other words, the rental needs to have some cash flow in order to work.

December

On a month where all four units were occupied, except one didn’t pay, we had 3 rent payments come in for a total of $2,035 before expenses. Expenses for this example month included management fees, HVAC service fees, and utility fees which total

$660.

$2,035 – $660 = $1,375

$1,375 sounds great, right? If I owned the property free and clear, it would be great to pocket $1,375, but I have to pay the mortgage. Remember back when I said the mortgage plus taxes and insurance was $1,731?

This means for the month of December, I actually lost money on this rental property.

Almost nothing’s the same month-to-month, and there have GOT to be some good months. So. we need to examine a few more windows of time to really gain a clear picture.

This was yet another month where there were four occupying tenants but only 3 rents

being paid. November’s expenses included the regular management fees, utility fees, plus an electrical repair.

The total income minus expenses came out to $1,270, which, as you know, didn’t cover the mortgage payment. I was in the hole $461 that month.

October

Fortunately in October, all four tenants paid rent, which brought in $2,590. The expenses were about the same as November’s (above) which brings our net operating income for October to $1,966.

After paying our mortgage, taxes, and insurance of $1,731 on that property, the cash flow was $235 beautiful, positive dollars (thank goodness!).

September

If we go back one more month to September, we see another month where, thankfully, all tenants paid. In this month we had minimal maintenance issues so the income of

$2,688 resulted in $586 positive cashflow after all expenses and the mortgage payment.

$586 is fantastic. But remember, this is only one of four months that shows this much in profit.

Rental Property Review

My investment of $50,000 on a rental property yielded cashflow (rents paid minus property expenses, mortgage, taxes, and insurance) of $586 in September, $235 in October, -$461 in November, and -$356 in December. The overall result of those four months, 2 positive and 2 negatives, was a cash flow of just $4. You read that right.

Four.

Rental properties require ebbs and flows. Tenants come and go and maintenance expenses are unpredictable. If you’re really interested in consistent cash flow in exchange for minimal work, rental properties aren’t going to be your cup of tea.

Rental properties might be for you if you really want a hands-on investment and if you’re okay with having some tough months in exchange for those with positive cashflow. You’ll just have to do everything in your power to ensure most of the months are positive to make it “worth it” long term.

So, Which is Better?

There’s no right answer for everyone. As you can see, I still invest in both types of properties. There’s value in both.

Rental real estate does have a potential for greater income – if the stars align and you have a fully occupied property with low maintenance costs and tenants that pay rent. There’s no such thing as a maintenance-free property though, and to boost rental rates, you’ll want to do some improvements here and there.

For a no-fuss investment with consistent cashflow, then a real estate syndication might be your best bet.

If you’ve spent any time on our 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.

1)  You Can’t Take Your Money Out At Will

Entering into a real estate syndication deal means you agree to the terms and projected hold time. Your investment capital (cash invested) is illiquid for the duration of the deal until the asset is sold.

If you’re passively investing in a real estate syndication deal and the hold time is 5 years, then you should plan to leave your money invested for the full 5 years, if not longer.

Other investments like stocks and mutual funds are much more flexible, and often times you can decide to sell and have your money back within minutes. In contrast, real estate syndications do not allow you to make withdraws at will.

Upon initiating or entering a real estate syndication deal, you must sign the Private Placement Memorandum (PPM). This document spells out the hold time, liquidity, and other details of the investment. If there’s anything about the idea of investing at least $50,000 and not having access to it for 5 years that makes you uneasy, turn around now.

2)  You Have To Invest A LOT of Money

The minimum investment on our real estate syndication deals is $50,000, which is a LOT of money for anyone.

You could buy a car, pay for private school, or make major headway on a mortgage. There are many options on how such a large value of cash could be used.

Our advice? Don’t put $50,000 into a real estate syndication until you’re absolutely sure that THIS is how you want to use this cash.

Want more of our advice? If you have $51,000 in your savings account, don’t you dare invest

$50,000 of it into a real estate syndication.

Since your cash investment won’t be available for several years, you’ll need to ensure you have enough saved in a separate emergency fund, created other accessible savings for additional short term goals, and have yet more cash to, well, cover life in general. Go with your gut on this one.

3)  You Have to Learn A New Process

Standard rental properties work much the same way as they do in the game of Monopoly. You check out a property, buy it, rent it out, and collect rent each month.

Investing passively in real estate syndications requires you to throw all of that out the window. Passive investors almost never set foot on the property, they don’t have a relationship with the lender or the management team, and they’ll never come into contact with tenants.

You will enter into the investment when the asset is already on it’s way to closing. Passive investing is called such for a reason – because you’re not involved day-to-day and because you retain time freedom throughout the process.

4)  You Have to Give Up Control

One more major fundamental difference between passive investing and everything else is the level of control you have over the daily decisions made in regards to the property, renovations, and tenants.

In regular real estate investments, you retain creative control over improvements, screening tenants, and whether you’re planning to sell within a certain period of time.

Investing in real estate syndications passively removes all of these daily hassles and puts you in the passenger seat. This can be frustrating if you’ve previously enjoyed controlling aspects of the property. However, developing a level of trust in the sponsor team, in this case, is imperative.

If you don’t think you can handle allowing a team of professionals to make decisions for you, you might as well cross real estate syndications off your list now.

Conclusion

Every syndicator and sponsorship team will shout from the rooftops about how great syndications are, and sure, they can be fabulous tools to grow wealth. But no investment vehicle is perfect and, certainly, no single investment style is perfect for everyone.

If any of the above top four reasons not to invest in a real estate syndication triggered you, maybe investing passively in real estate syndications isn’t your cup of tea. And that’s okay.

You have the power to choose what’s right for your situation, your family, and your financial goals, and you should absolutely exert that power to it’s fullest. Be honest with yourself and listen to your gut.