invest with Real estate group Vs. Self Owned

[Sam Ng]

I have couple of local real estate investment group approach me for participation in their projects (shops with apt rental on top floors kind of model , multifamily,..). Estimation is about 12% yearly return for 5 years . Property disposition after 5 years with capital return + 25% returns. 20K minimum to participate.This seems like pretty much similar to crowdfund (fundrise) except that this is in around my local real estate market.

Whereas the other option I have is consider buy and manage a separate rental on my own name. I already own couple of rentals in the area.

I am planning to invest like $150K but unable to makeup mind. Going with investment group takes out the headache of managing but it increases financial risks/ gives control over finances.

unable to decide on this. any experiences from people on the forum on this ? pls share your opinion.

[Frank Wong]

Hi Sam,

It really depends on how well you know the group.  What has their performance been?  How seasoned are they?   Do you trust them?  Would you be able to get this deal on your own?  

These are the same questions I ask myself before I invest into a syndication deal.  If I do it I would put a small portion of your available funds in the deal.  For me I like control, I have my system down and don't mind the extra work. I like owning my properties. 

In your case, you have rentals already why not add to it and maintain control.   I would only invest if its a deal you cannot do on your own.  So for me, the deals I invested in are large apartment deals that are 240-300 units.  Something I would never be able to do on my own.  

Lots of people entering the syndication space with very little experience.  Anyone can make money in a Bull market.