investing in real estate crowdfunding

Forbes is discussing this area of investments if you don't want the hassle of maintenance, management fees and repairs on your own rental properties.

just not familiar with how much risk is involved

I will have to look into it but i invest in four Heathcare Real Estate Reits that are large into senior care housing. Done well with it and with the population aging, I think it will stay strong. They also have from 5% to 10% Dividends.

woodiewood1 said:

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I will have to look into it but i invest in four Heathcare Real Estate Reits that are large into senior car housing. Done well with it and with the population aging, I think it will stay strong. They also have from 5% to 10% Dividends.

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so you think owning the REIT is better than actually owning a piece of the physical development through the crowdfunding of real estate development?

which ones of the healthcare do you recommend?

Owning a REIT is likely a lot easier to liquidate than owning a direct interest, if that is important to you

I have been using it since 2018 on the long-term appreciation plan. Up 21% from my original investment. It's extremely brainless, and it's fun to see local apartments I now have money in. I've heard liquidating can be a process, but I'm sure it's not anything worse than actually trying to sell a property.

Fundrise investors here. Compared to most REITs I feel that it has performed better in the last few years. I would recommend it.

If you are able to qualify I would also suggest looking into Ashcroft Capital.

Only up 21% in 5 years?

Gotta keep in mind that these crowd funded projects couldn't get institutional, private (or local) equity, and are weighing on public sourcing of equity… that is the biggest worry about these investments

I'm curious if you guys know the fee structures and pref/promote. I assume they fee the crap out of these investments.

I've seen IRR goals of 10-15% which is fairly low for RE investing, but not terrible compared to the stock market.

Just cashed out of my Fundrise investment. Took about 3 months.

Returns were nowhere near what they estimated. I think I was getting close to 4% maybe.

I've found other avenues of sourced RE investing making 2-3x that or even higher. More speculative and way less liquid but these are long holds (relatively) for me anyways.

Edit to add: I think it's a good alternative to the stock market but you can find publicly traded REITs doing similar returns/dividends as well.

I also don't like that Fundrise isn't very tax friendly. Those dividends are 1099 income and not returns on contributed capital (tax free until basis is recouped).

Aggie09Derek said:

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Only up 21% in 5 years?

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Yeah, it's not nearly as good as doing it yourself. Like I said, it's brainless though.

Would love to hear more about your experience with Ashcroft Capital.

Or any others advice on finding and getting into syndication passive investing. I have been to a couple of meetings with other clubs / groups. Just having trouble committing to lock up $100,000 for 5 years.

I have only been investing with Ashcroft for about a year but have been pretty satisfied. They have a very good reputation from what I could gather which is why I chose them. The nice thing is you can start with smaller amounts (I believe 25k is their minimum).

Instead of investing in a single apartment complex they use a fund structured over several properties. Your funds are relatively locked up so I would only use money that is relatively expendable. They pay you monthly installments which come from revenue generated mostly from tenants that have rented in the invested properties. Once they exit the property you then get a percentage of the sale profit based upon which shares you have selected.

So far all payments have been on time as promised. Their average deals run shorter than 5 years (I think on average 2-3 years). Your investment is treated as a K-1 which is beneficial tax wise. I have used it as a way to diversify my investments and it is hands off which is nice. The only complaints I have is sending the money you want to invest is kind of a pain, keeping your accredited investor letter up to date (it has a short lifespan it seems), and you can't just add a few thousand dollars to your investment here and there (it has to be in the minimum increments of 25k).

aduey06 said:

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Would love to hear more about your experience with Ashcroft Capital.

Or any others advice on finding and getting into syndication passive investing. I have been to a couple of meetings with other clubs / groups. Just having trouble committing to lock up $100,000 for 5 years.

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I'm a partner at a syndication firm. Our minimums are $25k. Let me know if you'd like to chat.

ag0207 said:

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I have only been investing with Ashcroft for about a year but have been pretty satisfied. They have a very good reputation from what I could gather which is why I chose them. The nice thing is you can start with smaller amounts (I believe 25k is their minimum).

Instead of investing in a single apartment complex they use a fund structured over several properties. Your funds are relatively locked up so I would only use money that is relatively expendable. They pay you monthly installments which come from revenue generated mostly from tenants that have rented in the invested properties. Once they exit the property you then get a percentage of the sale profit based upon which shares you have selected.

So far all payments have been on time as promised. Their average deals run shorter than 5 years (I think on average 2-3 years). Your investment is treated as a K-1 which is beneficial tax wise. I have used it as a way to diversify my investments and it is hands off which is nice. The only complaints I have is sending the money you want to invest is kind of a pain, keeping your accredited investor letter up to date (it has a short lifespan it seems), and you can't just add a few thousand dollars to your investment here and there (it has to be in the minimum increments of 25k).

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Thank you for posting your experience.

JamesBREI06 said:

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aduey06 said:

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Would love to hear more about your experience with Ashcroft Capital.

Or any others advice on finding and getting into syndication passive investing. I have been to a couple of meetings with other clubs / groups. Just having trouble committing to lock up $100,000 for 5 years.

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I'm a partner at a syndication firm. Our minimums are $25k. Let me know if you'd like to chat.

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RE only or other deals/operating companies?

We've looked at other things, but only ever executed on real estate. I do have a small family investment company that has invested direct in an array of different companies.

interesting - traditional RE or PE like deals, pref. return with carry on the common equity or overall carry % with a mgmt fee?

ChoppinDs40 said:

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interesting - traditional RE or PE like deals, pref. return with carry on the common equity or overall carry % with a mgmt fee?

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Carry on common equity after an 8 pref. Proforma returns with strict underwriting around 20% IRR to the investor. We focus on proven operators, reasonable leverage, fixed debt reposition plays in growth areas. We aim for 3-5 year holds.

We also put above and beyond any fee earned back into the deal which point blank means I can't make money unless the deal our performs pref.

Thanks for the commentary. Will keep in mind so that's why responding. Been following.

gotcha - 50% on the common? or 25%? interested to learn more. I've got a few deals currently invested that are right in that wheelhouse (raw land mostly here around DFW).

Yes would like to chat. Let me know how I can reach out. Email is username at yahoo if you want to send me more details. Thanks.

Guess OP didn't like the responses on the real estate board.

Sea Speed said:

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Guess OP didn't like the responses on the real estate board.

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Changed his title up though, hah!

ag0207 said:

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Fundrise investors here. Compared to most REITs I feel that it has performed better in the last few years. I would recommend it.

If you are able to qualify I would also suggest looking into Ashcroft Capital.

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is this limited to accredited investors?

In between the two. It really just depends on what we can negotiate with the operator.

Most deals end up 8% and then 60/40 post pref.

Email sent. Looking forward to chatting

Ashcroft requires you to be an accredited investor.

ag0207 said:

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I have only been investing with Ashcroft for about a year but have been pretty satisfied. They have a very good reputation from what I could gather which is why I chose them. The nice thing is you can start with smaller amounts (I believe 25k is their minimum).

Instead of investing in a single apartment complex they use a fund structured over several properties. Your funds are relatively locked up so I would only use money that is relatively expendable. They pay you monthly installments which come from revenue generated mostly from tenants that have rented in the invested properties. Once they exit the property you then get a percentage of the sale profit based upon which shares you have selected.

So far all payments have been on time as promised. Their average deals run shorter than 5 years (I think on average 2-3 years). Your investment is treated as a K-1 which is beneficial tax wise. I have used it as a way to diversify my investments and it is hands off which is nice. The only complaints I have is sending the money you want to invest is kind of a pain, keeping your accredited investor letter up to date (it has a short lifespan it seems), and you can't just add a few thousand dollars to your investment here and there (it has to be in the minimum increments of 25k).

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so once I have a million dollars I can be accredited- but then when you take $50K to invest into Ashcroft you keep your accreditation?

what if the stock market goes down so you had 1.025 million but then it dips to 875K such as the past two years?

At the time you make your investment you have to be considered an accredited investor. So if you are accredited when you invest & the market dips bringing you below the threshold you may have trouble making an additional investment.

There are two ways to be considered accredited. One considers net worth the second is by yearly income. An accountant can write a letter verifying your status & that is all it takes.

I've been using RealtyMogul and EquityMultiple for syndication real estate investing. For EquityMultiple, you are supposed to be an accredited investor, which I am, but I don't remember having to provide any paperwork to prove so. Their minimum investments ranges from $5K to $25K.

For RealtyMogul, I am investing in one of their eREIT's and accreditation was not required. Minimum initial investment is $5K and you can invest monthly with a minimum of $250/month.

Been pleased with both platforms. Everything seems to be going as promised, but I have not invested a ton. I've just been feeling it out for the past two years. I've heard good things about DLP and Origin, but those minimum investments are big ($100K+).

jmac98 said:

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I've been using RealtyMogul and EquityMultiple for syndication real estate investing. For EquityMultiple, you are supposed to be an accredited investor, which I am, but I don't remember having to provide any paperwork to prove so. Their minimum investments ranges from $5K to $25K.

For RealtyMogul, I am investing in one of their eREIT's and accreditation was not required. Minimum initial investment is $5K and you can invest monthly with a minimum of $250/month.

Been pleased with both platforms. Everything seems to be going as promised, but I have not invested a ton. I've just been feeling it out for the past two years. I've heard good things about DLP and Origin, but those minimum investments are big ($100K+).

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Commercial RE is getting a little scary these days in some places. I presume they have a lot of info for investors to do due diligence.

Techno-ag, they do have a lot of info regarding their due diligence on sponsors and strategies. Both RealtyMogul and EquityMultiple are sending out monthly and sometimes weekly communications on these topics, particularly given the shakiness of the commercial/office building space. I have also noticed that the number of deals on both platforms has reduced significantly from last year or even 6 months ago. Seems like everyone is in a wait and see mode right now, trying to accumulate or reserve cash.