Matthew MacFarland and Amanda Han, CPAs and real estate investors, lost $50,000 each in a failed syndication deal due to lack of due diligence. Despite the setback, they continue investing in real estate differently. They own an impressive portfolio including rentals and syndication deals. They learned the hard way that working with investors is different from investing. They stress the importance of due diligence in real estate syndication, where investors pool capital to purchase properties managed by syndicators. Investing in syndication requires trust in the syndicator’s competence, as a bad syndicator can ruin opportunities and drain savings. MacFarland and Han emphasize thorough vetting of syndicators, including online searches and investor feedback. They have invested in multiple syndications, enabling them to own portions of larger properties. Distributions from syndications provide income, with payment frequency varying based on the deal structure. The couple acknowledges the importance of active and passive real estate investments, depending on resources and preferences. Currently, passive investments suit their busy lifestyle with young kids. They prioritize tax strategy, recognizing their expertise lies in this area. Their focus now is on passive investments in larger deals, leveraging the expertise of others in real estate investing. They emphasize the importance of due diligence and learning from past mistakes.

Read more at Yahoo Finance: A CPA couple who invest in real estate on the side shares the investment mistake that cost them about six-figures worth of 401(k) money