Not a bad idea .. in principle. However, like any business, it depends on the operator, and the loan-to-value, the class of assets, whether it is construction or existing asset, what position the mortgage is in (1st, 2nd, 3rd, ..).
I did two syndicated investments: one was paid out as promised with about a 12% annual return in about 2 years. On the second one I am now waiting for 3+ years on a $50,000 investment in a mortgage on 3 pieces of Kelowna land that were advertised as "65% LTV" and now the land value is around 50% .. so likely my mortgage will be cut down by 20% in addition to the lost time and interest that was meant to be 12%/year !
Proceed with caution. Analyze like any investment !
Feel free to read these two posts here on
"guaranteed returns" and on
mistakes to avoid investing in real estate syndications in general.