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Buying & Selling Real Estate

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Matt Ward
  • Specialist
  • San Francisco Bay Area
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221
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$1M to SFHs or Syndications

Matt Ward
  • Specialist
  • San Francisco Bay Area
Posted Jul 23 2019, 10:11

Here is a general post to the group, which I'm sure will solicit a variety of responses :)

If you had $1m to invest in either SFH or Syndications, what would you choose and why? I ask because I don't see a lot of high net worth real estate investors buying SFH in Detroit or Columbus for cash flow. They are measuring their IRR and EM goals and deploying capital to operators where they can achieve true risk adjusted returns without being hands on and spending their time elsewhere to make money. This begs the question, is the average BP investor jumping into a SFH investment because that is what is available to them based on capital, and if so, that's totally fine IMO... or is there a population of investors that fundamentally prefer buying SFH in deteriorating economic markets for short term cash flow over the longer term, risk adjusted growth of a successful syndication? Or do some people simply not see the risk of the SFH investment and jump in anyways?

I'm not trying to stoke the fire or say my opinion is the best, I'm honestly curious as to peoples thoughts on this topic

Cheers.

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