Based on your results from our Real Estate Investor Quiz, we believe Some Funds, Real Estate Investment Trusts, and Possibly Syndications may be the right investment options for you.

Passive investing in real estate is a great way to reap the benefits of owning property without all of the headaches that actively managing your properties can entail.


A real estate fund is a type of passive investing that involves pooling different projects and raising funds from investors.  An easy way to see a fund is as separate investments into different syndications.  Because not every project will perform the same, funds are generally diversified to offset risk. 

To understand the main differences between a REIT and a real estate fund, read this Investopedia article.

One advantage of investing in a real estate fund over directly buying a rental property is that funds generally offer more diversification. Unlike a single property, funds can purchase a variety of asset classes over a wide geographic area. Funds are also not tied to a single investing strategy. Learn more about diversification in this video, and subscribe to our YouTube channel for more content.

Pros and Cons of Funds

Funds are a type of passive investing that don’t require any work on the part of the investor. However, there are some tradeoffs to this type of investment.

Pros of Funds:

Cons of Funds:

Real Estate Investment Trust

A Real Estate Investment Trust (REIT) is a company that owns and typically operates income-producing real estate or related assets. REITs allow individuals to invest in large-scale, income-producing real estate without having to purchase the real estate themselves. Instead, investors receive a share of the income produced by the property.

REITs are the most common type of passive real estate investing. There are over 1000 REITs to choose from, and there’s one for every type of asset class: self-storage, office space, apartment buildings, and more. Get an in-depth look at different kinds of REITs in this Investopedia article.

Financial services firm Morningstar found that optimal investment portfolios allocate between 4%-13% in REITs. Read more about their findings here.

REIT Pros and Cons

Pros of REITs:

Cons of REITs:


In a syndication, a General Partner (GP) is responsible for picking out a real estate project and doing all of the necessary work to complete the project.  These are big-scale projects, such as purchasing an apartment building and creating value-add. 

The majority of the cash for the project comes from Limited Partners (LPs).  They write the check but don’t have to guarantee the loan or manage the project. 

At the end of the project, everyone gets their capital back in addition to the proration of the profit.  Because they have less responsibility, LPs get paid less than the GP. Learn more about how investors get paid in both syndications and funds in this article.

Pros and Cons of Syndications

Syndications are a type of passive investing that don’t require any work on the part of the investor. However, there are some tradeoffs to this type of investment.

Pros of Syndications

Cons of Syndications

What’s Next?

Learn more about funds in this Ironton Capital webinar.

Want to see how to unlock your home’s equity so you can invest in funds, REITs, or syndications? Our Property Llama software will allow you to run different scenarios to figure out the best way to build your portfolio. Sign up for your free account to get started.