Most Likely to Have Consistent Returns @ 10% - Real Estate Syndications?

Submitted by FatGuyTravelz35 t3_zyigj0 in personalfinance

We have a chunk of money we want to put on autopilot and invest in, and like the idea of real estate syndications. I feel in ways this may be better than stocks in that there is still an element of responsibility on the syndicators to find/execute a great deal, more-so than the whims of stocks swinging based on whatever the crazy markets are doing.

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Anyone have success with these syndications? Have they been relatively consistent? Would you do them again?

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Edit: Looking for stuff that pays out dividends/income to supplement living costs, not just 10% increase in anything

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suboxhelp1 t1_j2627gk wrote

Real estate markets go down, too.

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FatGuyTravelz35 OP t1_j29ow4k wrote

Its less the overall value of the real estate then if its positioned right and making adequate rental income to be profitable. But I get what you mean.

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mrbrsman t1_j28pixw wrote

Be cautious in seeking “holy grail” investments. Anyone who says they have provide consistent cash on cash returns of 10%, I personally would avoid.

Dividends/distributions are not the most efficient return vehicles. You would be better off selling shares periodically than seeking dividends.

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FatGuyTravelz35 OP t1_j29p21b wrote

Yea, I don't mean for it to seem 'holy grail'-ish, but trying to figure out something that we could potentially live off the returns while living somewhere with a cheaper cost of living and possibly not working...guess that does sound kind of 'holy grail'-ish lol

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mrbrsman t1_j29q7ha wrote

RE syndicates certainly can outperform the equity market but that is usually comes with higher business and liquidity risks, which both can be mitigated with experience, good partners and a large & diversified portfolio.

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o2msc t1_j261ssg wrote

Total Market Index Funds

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FatGuyTravelz35 OP t1_j2623st wrote

Does that pay out annual dividends?

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t-poke t1_j264osk wrote

Don’t chase dividends. They’re not free money and are very tax inefficient if you’re not in a retirement account.

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kveggie1 t1_j28oa04 wrote

REIT mutual funds.

You want to stay liquid...

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