Passive Crowdfunding Real Estate Investing

[Nick McCandless]

I have looked into many passive Real Estate investment tools like REITs, eREITs, etc. with companies like Fundrise, RealtyMogul, etc. but am finding a few major problems with them:

I have a few questions regarding investing with you guys.

1) No benefit of leverage by putting down 20% and having an asset worth 5x the investment and having the tenant pay down the debt with cashflow

2) The benefit of leveraged appreciation

3) Don't get the tax benefits like depreciation, mortgage interest, etc.

With that said, does anyone here have experience with these companies? And, what are the most passive investment opportunities out there in real estate that provide these benefits?

[Mike Dymski]

Hey Nick.  Most of the investment opportunities you will find on the crowdfunding sites are leveraged deals.  Sponsors raise capital for the down payment from passive investors like yourself and they get the rest from their lenders.

For most of these deals, depreciation flows through to the passive investors as well.

You give up control and part of the deal to the sponsor and you get professionally run assets and little time commitment in return....that's syndication in a nutshell.