JV vs. Syndication: Why Most Investors Choose the Wrong Vehicle.
Most new investors get sold the dream of syndications.
“Passive income!”
“Professional operators!”
“Hands-off investing with big returns!”
Sounds nice… until you read the operating agreement.
The truth?
Syndications work for the people running them.
Not always for the people funding them.
The smarter, often safer, path for most?
Joint Ventures (JVs).
Let’s break it down in plain English.
What Syndications Don’t Tell You Up Front
1. You’re not an owner… you’re a passenger.
You don’t control decisions, direction, timelines, or exits.
If management pivots, you’re along for the ride, good or bad.
2. Fees, fees, fees.
Acquisition fees.
Asset management fees.
Refi fees.
Disposition fees.
These get paid whether you win or lose.
3. Your money is trapped.
There’s no liquidity. No vote. No escape hatch.
You’re locked in until the GP decides otherwise.
4. The “passive income” is often smaller than advertised.
Because the waterfall structure pays operators first, then investors… if anything’s left.
5. You carry risk without control.
You’re legally responsible for being part of the entity…
but operationally powerless to change a thing.
Syndications aren’t evil. They’re just designed for scale, not for the personal, hands-on investor who actually wants to understand where their money is going.
Why JVs Make More Sense for Most Investors
✔ You actually own the asset.
Not a fraction of a structure, actual equity.
Your name is in the deal, your vote matters, your position is real.
✔ Decisions are shared, not dictated.
Exits, renovations, budgets, contractors, timelines…
You’re at the table, not in the audience.
✔ Profits are simpler and cleaner.
No waterfalls.
No stacked fees.
No “GP carve-outs.”
Just contribution + value created = profit split.
✔ You learn the business.
A JV forces transparency.
You see the numbers, the supporting documents, the decisions.
You get smarter every deal.
✔ Your upside isn’t capped.
In a syndication, the GP’s upside can be unlimited, but yours rarely is.
In a JV, everyone wins proportionally.
The Part Nobody Talks About
Most investors don’t need a syndication.
They need a good partner, a transparent system, and a deal that makes sense.
That’s why I operate the way I do:
I don’t take your money. I partner with you on the deal.
We win because the project wins, not because we charged you for trying.
For most investors, a JV is more profitable, more educational, and far more aligned with their actual goals.
Thinking about your next investment?
If you’re unsure whether your situation calls for a JV, or you’ve been pitched a syndication and want the real breakdown, reply to this blog with:
“Which one is better for me?”