B
rennan Schlagbaum has no interest in managing properties but wants exposure to real estate without the hassle. His solution is investing in real estate syndications, which are completely hands-off. In these deals, a group of investors pool capital to purchase a single property managed by the syndicator.

    Schlagbaum recognizes the benefits of real estate – tax advantages and portfolio diversification – but doesn't want to own or manage properties himself. He says he's too busy maintaining his primary residence: "I hate real estate with a passion. If something breaks in my house, I call somebody." To benefit from real estate without the hands-on work, he invests in syndications.

    Real-estate syndication deals involve investors pooling capital to purchase a single property managed by the syndicator. Once an investor contributes capital, their role becomes completely passive. The syndicator is responsible for finding and executing the deal, delivering returns to investors, and making decisions about the property.

    Schlagbaum invests in five multi-family syndications with a trusted partner who specializes in upgrading units, increasing rent prices, and selling properties after a few years. As an investor, he sends capital and trusts the syndicator to do their job. This is a good option for established investors looking for hands-off strategies.

    Other established investors have also turned to syndication deals for a more passive experience. Tess Waresmith, a self-made millionaire, invested in her first syndication in 2023 and likes that it opens doors to bigger investment opportunities. Carl and Mindy Jensen appreciate the hands-off nature of these deals but note that returns can be unpredictable.

    To participate in real-estate syndications, you typically need to be an accredited investor with a net worth over $1 million or income over $200,000 (individually) over two years. However, there are workarounds, especially if you're part of a real-estate community or network. Schlagbaum notes that knowing the right people can help get around these hurdles.