Is A Joint Venture Real Estate Deal Better Than Syndication?

Rob Rowsell answered a caller who asked about which of two investing choices was the best arrangement. Should the caller choose a joint venture real estate deal or a syndication investment? Watch and learn which is the best scenario for your own property deal.

Joint Venture Real Estate Deal And Syndication Investment Compared

Our friend Gabriel asked Rob which factors dictated a joint venture real estate deal, rather than investing with a syndication. For example, could the number of units in the property play a role?

Instead, Rob feels like JV deals are appropriate whenever you can pitch in with competent, like minded friends. He shares his Christian faith with one group who he does Joint Venture investments with, although Rob welcomes non believers to his business circle. Faith in Christ just happens to be one of the common threads in the trust that bonds this group.

When is a Syndication property investment a better choice? Rob explains that if you contribute to multiple Joint Ventures, you will soon run out of money. Syndication investments do not require you to risk as much cash as a JV or become as directly involved. When you go into a Joint Venture, it’s all hands on deck amongst a small group to make sure all of the paperwork is signed and decisions are made.

So, which do you choose? Go with a smaller property and smaller team on a Joint Venture? You may get a greater return, but you will definitely work for it. A Syndication could reap a smaller reward, but will not require as much investment or effort. It all depends on your own financial situation, whether or not you have a close knit core group of investors, and what your goals are.