EMD`s and alternate investments

[TangoWhiskey]

There's been some great mention of EMD's and alternative market investing among Thomas et al, in the last few days.



Can I make a nearly equivalent rate of return to direct RE investing by instead developing a strong discipline in selecting RE syndications and other forms of illiquid alternate instruments? In essence you would be outsourcing deal acquisition and management so you would expect to lose some profit points there but for hassle and time and especially cleanliness of each deal , the alternative investment syndicate or other RE opportunity would probably be a viable alternative way of investing in large RE projects in a very clean hands off fashion rather than owning it yourself. You would have to develop an investing discipline for that new space plus learn how to do due diligence based on financial statements as the starting point but there would be ways (I liked Rickson's commments in another post about selecting the people most personally and financially motivated to accomplish your best interests) and it seems likely you'd make say 10-12 % yr rather than the 15 or 18 you'd get if you did it all.



Thomas and people who have any experience in this it would be great to have you post on this idea, also on what people find about dealing in this asset class area.



Cheers

 

[Thomas Beyer]

If you do all the work and put up all the money and qualify for all the mortgage and take all the risk and know it as well as a real estate syndicator of course you'd make more money.



By having someone else do the work or have that person/group know more than you do or have them take the risk of mortgages they have to make some fee and/or % of profit, i..e you will make less as all you do is write a cheque.



The recent introduction of the requirement to have licensed reps sell syndicated deals the cost structure has gone up, as the EMD now takes on some risk and wants to make money, too.



Many decent deals out there for oil/gas, real estate, land, shopping centers, farmland, US real estate .. and many overpriced ones or run by questionable people or with questionable fees or questionable assumptions.



I have commented on that a while ago here on myreinspace:



http://myreinspace.com/search/public_forums/Real_Estate_Discussion/62-13817-69717-Real_Estate_Syndications_-_A_Good_Idea_.html#69717