New Investor Looking for Direction: Small Multifamily vs. Syndications

[Martin Zitzelberger]

I’m an entrepreneur who has recently reached a point in my business where I can finally start investing in a meaningful way. I’ve been studying both active and passive investing for years, and now that I have real capital to deploy, I’m focused on finding the right paths to diversify, grow wealth responsibly, and protect it long-term.

I’m not risk-averse, but I’ll admit I’m a bit overwhelmed by the number of niches, strategies, and opportunities out there. I’m especially interested in real estate syndications, but I don’t yet feel confident in my ability to properly vet deals or identify reputable sponsors.

My wife and I are preparing to get started with small multifamily properties in the Midwest, although this strategy has risks and drawbacks as well. I’d love to hear from members who have stood at this same crossroads. Do these paths complement each other? Which typically comes first? And is the current market environment a smart place for a new investor to step into commercial syndications?

Books are helpful, but I’m hoping to connect with people who’ve actually navigated this successfully. I currently have no network so thanks in advance for any perspective you’re willing to share.

[G. Brian Davis]

Hi @Martin Zitzelberger nice to meet you. Most people judge syndications simply because they don’t understand how they work, and many jump in blind without knowing how to vet sponsors correctly or stress-test deals. But every strategy has risk: tenants can stop paying, properties can get damaged, flips can blow up from hidden issues or bad contractors, and syndications can underperform.

The best thing you can do right now is learn how operators actually make money, ask them about their worst deals, and get comfortable running your own stress tests so you’re not relying only on the pitch deck. At the same time, keep building relationships, even a small network of experienced investors will accelerate your learning curve more than any book.

Both small multifamily and syndications can work together if you approach them with patience and due diligence. Hands on ownership teaches you how real estate behaves in the real world, while syndications help you scale into markets and asset types you can’t take down alone. It’s less about choosing the perfect path and more about understanding the risks clearly so you’re never investing blind.