How to Achieve Diversification Goals Investing in Real Estate Syndication vs Fund
When it comes to real estate investing, there are two main options: syndication or a fund. Both have their own unique benefits, so it can be tough to decide which is the right choice for you.
Today, we’ll compare and contrast real estate syndication vs fund investing, and help you decide which option is the best strategy for achieving your diversification goals!
Real Estate Syndication
With real estate syndication, you are pooling your money with multiple investors to invest in high quality properties and projects. This can be a great way to achieve diversification and expand your portfolio to include assets you normally wouldn’t be able to afford or manage on your own. Additionally, because you are investing in a pool of properties, you don’t have to worry about picking them– the real estate syndicate manager will do that for you.
Real Estate Fund
A real estate fund is a partnership between an investor and a real estate company. The real estate company uses the funds to purchase, manage, and develop real estate projects. This means you do not have to directly own or manage the properties. Investors will earn a return on their investment from the profits of the real estate company.
This type of investment strategy can be used to finance a variety of different types of real estate projects. For example, real estate funds can be used to purchase office buildings, retail shopping centers, industrial warehouses, or residential apartments. Real estate funds can also be used to finance the development of new real estate projects such as hotels or golf courses.
Which is Better for Achieving Your Diversification Goals?
The answer depends on your specific goals and circumstances. If you are looking for a hands-off investment where you don’t have to worry about picking the wrong property, then a real estate syndicate is the better option. However, if you are looking for more diversity and want to invest in multiple properties, then a real estate fund is the better option.
No matter which option you choose, make sure you do your research and talk to a financial advisor to ensure you are making the best decision for your unique circumstances.
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MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.