Is investing in real estate syndication a good idea?

From what I’ve seen so far, there are following problems:
- If I choose a single deal, the risk is high because we’ll depend on the expertise of a small number of people. If a fund of funds, asset management fees will be in the range of 2-3% (or more), and that’s high.
  - Even in the latter case, the risk is fairly high.
    - If you ask someone, they’ll embellish the track record they show you. However, experts have a track record of getting it wrong.
    - For e.g., I once invested in actively-managed mutual funds of Morgan Stanley. The experts should’ve had all the good information on the market, still they performed worse than index funds.
  - This is my biggest gripe: I am hesitant to trust a small number of experts. No matter what they say, it’s difficult to consistently predict the future.
- Tax returns will be complicated.
  - I don’t use a CPA but if I were to hire one just because of this investment, that’ll be 2-3k extra expenses per year. For an investment of 100k, that’s another 2-3%.
  - A fund or fund of fund will potentially invest in multiple states, so I’ll definitely need a CPA. Otherwise, I’d have to spend a lot of time learning more tax code or risk making mistakes.
Conclusion:
- I had a new idea, I explored it and decided to not go with it. That’s a decent outcome too - I don’t have to put my money into every new idea.
- As far as diversification goes, stocks, bonds and our primary residence should provide plenty. (For instance, we are hardly invested into bonds and I am going to fix that in the near future.)
  - I’ve seen Reddit posts of people claiming to have ~10MM just in S&P - if so, I am clearly doing better than that but still have a long way to go.
  - One future improvement - once we run out of our currently harvested tax losses - could be direct indexing.