This content was created by Bridger Pennington. This content was uploaded by Bridger Pennington. This is a YouTube video titled "Syndication Vs Investment Fund, Which One Works Best For You? 💸" (created 2025-04-10). It is a single-speaker business/educational talk in which the presenter (who says they run two 8-figure funds) explains the difference between syndications/single-asset deals and full investment (blind-pool) funds. Using a house-flipping example, the speaker contrasts doing one deal at a time (syndication) with running a fund that provides a $5–7M ready capital pool, enabling much higher deal volume (example given: scaling from 4 to 72 flips/year) and delivering benefits like economies of scale, lower debt rates, and easier deployment of capital.
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So what's the difference between a syndication or a single asset fund and a full-out investment fund? I currently run 2 8-figure funds, and we're going to answer this question in 2 minutes or less. So down to the whiteboard here, a syndication or a single asset fund, this is kind of how I describe them. A house flipper is a great example. You find a house, you're like, hey, let's go flip the house. You guys have seen this on TV, right? So they go out and they find hard money, bank money, or their own money. And they pool that money together, usually into an LLC. Okay? They go, they put that LLC together, they fund the deal, they come through, they start flipping the house. They put money in, they paint baseboards, all that kind of stuff. They make some money. I think the average house flip makes $65,000 right now in America. Awesome. And they make money. They do this loop over and over again. I had a friend come into our group. He was doing 4 houses a year with a syndication, which is pretty darn cool. But then we introduced him to a fund. Okay, a full-out investment fund. Instead of doing one deal at a time, we set up a fund. He went and instead of flipping one house at a time, he flipped— get this— in the next year, he went out to flip 72 homes in the next year because he had a fund. He had a pool of money already ready to go that he could draw from to flip houses over and over and over again. Instead of with a syndication or a single asset fund, Every time he finds a house, guess what? He's got to call people up. Hey, we got money. Can you wire money in on Friday? That's how a syndication or single asset fund person works, which is fine. Good money. But with a fund, you already have a pool of money ready to go. I think he had like $5 or $7 million ready and he could just buy houses on the spot, flip them. With this, he got economies of scale. He got lower debt rate and a bunch of few benefits of running a fund. There's a reason why Most successful syndicators or single asset fund managers, most out there end up running a fund model eventually because it is so lucrative to scale. Okay. Running a full-out fund model, a blind pool fund is all about scale. Syndications are all about building a tracker and doing one deal at a time.
