Other options include real estate investment trusts (REITs), exchange-traded funds (ETFs), and passively managed portfolios. Often overlooked are tax-managed funds, which offer a mix of passive and active real estate tactics. Note, however, that they are managed by a separate entity.
The separation of management and investment tactics makes for more predictable returns and tighter control. Syndicated real estate offers liquidity and transparency that other private real estate funds sometimes lack, including company’s audited financial statements, among other required financial info.
4. Reduce your minimum investment amount
Many private real estate funds require you to put down a significant amount of cash up front. If you need $1 million for a private real estate fund investment, you might be out of capital. Syndicated real estate usually requires lower amounts for minimum investment. In other words, you can get great exposure to the real estate market at a much lower cost.
Not only can you invest small amounts in syndicated real estate, but they offer returns that are usually stable. This also makes syndicated real estate a solid long-term investment.
Typically, the minimum amount required for most real estate investment is between $5,000 and $50,000. Syndicated real estate removes the barrier of entry if you want to put money into real estate but do not have a huge amount of money. You can invest less than $5,000-$50,000 and still get the same returns.
Source: mpamag.com