Did you know the average landlord spends over 15 hours a month managing a single property? That’s nearly 180 hours a year—time you could be using to scale your investments or enjoy your life. If you’ve ever owned single-family or small multifamily homes, you already know that these investments require serious time and energy.
The Struggles of Active Real Estate Investing
Residential real estate investing can be challenging because the investor typically wears many hats. You have to find the property, negotiate and fund the deal, renovate it, interview tenants, and even perform maintenance.
And the trouble doesn’t stop there. You repeat most of the process again when the lease ends. It can feel like a never-ending cycle.
Multifamily Rentals: A Slightly Easier Path
Multifamily properties offer some advantages over single-family homes. If one tenant moves out, others can still help cover the mortgage. Plus, it’s easier to manage one property with multiple tenants than several single-family homes.
However, even with a property manager, you’re still responsible for:
- Bookkeeping
- Maintenance and repair costs
- Strategic decisions
You’re essentially running a small business—which is tough if you already have a full-time job.
What Makes Passive Investing Truly Passive?
On the flip side, there are fully passive investment opportunities in commercial real estate. These deals are professionally managed, so you don’t deal with tenants, toilets, or termites.
Syndications Explained
A syndication pools investors’ capital to acquire larger, income-producing properties. You invest alongside other limited partners, while a sponsor team manages the project.
5 Key Benefits of Real Estate Syndications
1. Minimal Time Commitment
Think: set it and forget it.
With syndications, you invest your money, receive regular cash flow, and earn profits when the property is sold. No fixing toilets or chasing down rent checks—the sponsor team handles all of that.
2. Diversification Across Markets and Asset Classes
It’s nearly impossible for one person to master every real estate market and asset class. But by investing with experienced sponsors, you can diversify quickly and confidently—without needing to be an expert.
This helps you scale your portfolio and manage risk.
3. Tax Advantages
Like direct ownership, syndications offer pass-through tax benefits. That means many quarterly distributions can be offset by depreciation, often resulting in tax-deferred or tax-free passive income during the holding period.
Note: You may owe taxes on profits at the time of sale. Consult your CPA for personal guidance.
4. Limited Liability
Your liability is capped at the amount you invest. If you put in $50,000, the worst-case scenario is losing that $50,000. You’re not personally liable for the mortgage or any operational issues. That’s true peace of mind.
5. Positive Impact
When you own one rental, you might impact a single family. But in a syndication, your investment can help improve housing for hundreds of families and transform entire communities—with safer, cleaner, and more livable environments.
You won’t get that level of impact from mutual funds.
Conclusion: Choose What Fits Your Lifestyle
If you’re on the fence between active and passive real estate investing, know this: the experience you gain from owning rentals is valuable—but it’s not a prerequisite for participating in commercial real estate syndications.
Whether you’re just starting out or looking to offload the burden of self-management, syndications offer a scalable, diversified, and hands-off way to grow your wealth and make a difference.
Want to learn about real estate investing without the headaches?
Contact our Prevail team today to learn how real estate syndications could help you build passive income while staying focused on what matters most.
McLean Kistner | Manager of Private Investment | mkistner@prevailiws.com
Regan Smith | Investor Relations | rsmith@prevailiws.com
913-295-9500
