As real estate professionals, we spend our days helping clients build wealth through property ownership. I distinctly remember what my first mentor told me when I first started selling residential real estate: “Cassidy, it’s great to help your clients make money, but don’t forget to also make yourself long-term money as well. Always be buying real estate as you are selling it.” Golden advice, but he didn’t quite give me the best guidance; he forgot to tell me what TYPES of real estate investments I should be making. That’s where this article comes in. When it comes to our own investments, too many of us stick to the old-school strategy of buying single-family rentals (SFRs). While that approach can work, it’s not the most efficient way to grow wealth, especially when better options exist that we simply aren’t aware of.
Instead of juggling multiple properties, tenants, and maintenance headaches, real estate agents should be looking at commercial syndications and funds as their primary investment vehicles. These investment vehicles offer higher returns, true passive income, and a way to scale without the stress of being a landlord. Here’s why it’s time to rethink your investment strategy:
1. Use Your Expertise Without the Hassle
You already know how to evaluate properties, market cycles, and deals, especially in your localized market. But owning single-family rentals still means dealing with tenants, repairs, and constant management. Why put yourself through that? You're buying yourself another job! With commercial syndications and funds, you can leverage your knowledge while leaving the day-to-day operations to professional asset managers.
2. Build Passive Income at Scale
Owning multiple single-family homes sounds great—until you realize you’ve just created another full-time job for yourself. Managing properties, chasing rent, and handling late-night maintenance calls add up fast. Commercial syndications and funds, on the other hand, let you invest in larger deals—like apartment complexes, office buildings, and retail centers—while experienced operators handle everything. You get the benefit of real estate cash flow without the hassle.
3. Stronger Returns and Diversification
Single-family rentals rely on home appreciation and modest cash flow. But commercial properties, especially through syndications and funds, generate wealth through forced appreciation, value-add strategies, and better cap rates. Plus, when you invest in a fund, your money is spread across multiple properties, reducing your risk if one deal underperforms. No more relying on the neighbor to make a good decision on how much to sell their house for; one bad comp can ruin your valuation.
4. Big Tax Advantages
One of the best-kept secrets in commercial real estate investing is the massive tax benefits. Unlike single-family homes, commercial properties allow for accelerated depreciation, cost segregation, and pass-through deductions—meaning you can offset a lot of your investment income. Being a “real estate professional” allows you to take these losses/tax advantages immediately to offset your earned income from sales. **Talk to your accountant about the true benefits and if you qualify as a “real estate professional.”**
5. Get Access to High-Level Deals
Unless you have millions in capital, getting into institutional-quality commercial deals on your own is tough. But by investing in syndications and funds, you gain access to professionally managed, high-value assets that are normally reserved for big institutional players. These properties are often in prime locations, better managed, and built for long-term appreciation. If you are in the Washington DC market, you understand that price points for great assets are very expensive. This is a way for you to own a piece of extremely valuable assets—assets that you can be proud to say you own.
6. Focus on Your Business, Not Tenants
This is one that we forget, and I believe it is one of the biggest benefits. YOUR TIME—your time is best spent closing deals, not chasing down rent payments or fixing leaky faucets. When you invest in commercial syndications and funds, you free up your time to do what you do best: sell real estate and grow your income. Meanwhile, your investments work for you in the background, generating passive cash flow. You sell more houses, you have more money to invest; it’s simple.
7. Play the Long Game: Build Generational Wealth
At BPG Holdings, we believe in building generational wealth for the long term. Owning a handful of rental homes might provide some extra income, but it won’t create the kind of financial freedom that commercial real estate can. Investing in larger assets through syndications and funds sets you up for long-term growth, passive income, and financial security that can be passed down for generations.
Final Thoughts
I know this isn’t what the traditional real estate agent is taught. I mean, we are supposed to be the experts, right? Why would I trust someone to do what I DO BEST? It’s because investing is a different game. Being a great real estate agent and being a great real estate investor are simply two different jobs and skill sets. You are great at knowing your market, building rapport with your clients, networking in the residential real estate space with other like-minded individuals, and helping people get top dollar for their homes. So, yes, of course, you're serious about building wealth, but maybe it’s time to rethink your investment strategy. Single-family rentals have their place, but they come with a lot of limitations. By shifting your focus to commercial syndications and funds and partnering with operators that you trust, you’ll not only have the ability to earn better returns but also save yourself the stress and time that comes with being a landlord.
Want to learn more? Let’s have a conversation. At BPG Holdings, we help real estate professionals like you transition from active landlords to smart investors. Let’s build generational wealth—together.
Happy Investing!
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