I'd like to include real estate in my portfolio, both for diversification and for higher yield.
The two options I know about:
1. Owning actual real estate, and renting it. This comes with a lot of headaches, but has a fantastic yield if done well. The best values are in other towns, further aggravating the headaches.
2. REITs - Easy to handle and liquid, but currently selling at 2-4X their underlying NAV. This seems ripe for a bubble burst. Yield is much lower than actual real estate.
I've been doing a bit of reading about syndication and crowdfunding, and they seem to combine the best of both worlds (except for the liquidity): high yield, value tied to underlying holdings, passive investing. There are a lot of sites springing up and offering these services. Has anyone used or considered using them?
Because of SEC regulations, they require "Accredited Investors", ie those with over $1mm or 200k annual income. Do they actually verify these requirements, or is it lip service?