Safer to do leasehold syndications for master leasing utilizing credit insurance for a guaranteed profit.
Really interesting thread here. There is a balance to everything in life and I think it applies here.
Syndication is a very powerful tool and with great power comes great responsibility.....My first syndication I really had no idea what we were getting into and fortunately we were a beneficiary of a really strong market to make up for our mistakes. We were able to return our investors principal and a hefty profit and that was how we go started. I had a group of family and friends who were willing to take a risk with me because they knew I was going to work really hard to make it successful AND I had my money along side theirs. The thing is there was no better learning experience than going through it for the first time. If you wait until you have all the answers you will never move forward.
On the other hand....I wish I could give credit to who said this but this statement always resonated with me....Think of investor's money in a syndication as their time. They have spent hundreds if not thousands of hours earning the money they have to invest with you. Don't waste it. Syndicators are stewards of investor's time/money. It's our responsibility to ensure we are doing our best to not waste it.
There is no right answer here. For the investors looking for syndication opportunities PLEASE PLEASE do your due diligence and ensure they have done what they are trying to do before. Past performance is the best indicator of future results.
You wouldn't pick a cardiac surgeon who is doing his/her first heart surgery on you. Don't invest money without understanding who is really executing the business case and how many times they have done it before successfully.
For those people trying to get involved in syndication please get a great team (attorney, accountant, real estate coach, etc.) to help you. Usually you get what you pay for in these regards.
Stepping off my soapbox now.....
A lot of good discussions here by very experienced people and I think this is a very good lesson for newbie syndicators who think they can take a few courses and get motivated and start a syndication which is not true and you should not risk your or other investors money unless you are able to do all those things explained above at the same time and I think learning from ground up and climbing to the top will make successful syndicators.
Thanks everyone for your insight and at least I am convinced.
I found this thread to be full of great advice although some conflicting. But generally I think everyone can agree no one should start with a 150+unit syndication. In my opinion if you were to want to do a syndication to start getting into real estate investing realistically you would not want anything more than 28 units. I agree with Brad Sumrok in saying that you should not just not go for it based or fear or inexperience, BUT you NEED to consider that it is not your money and that you must be knowledgeable to where there are no surprises. It is a useful thing to have these kinds of threads to keep peoples expectations grounded sometimes.