RealtyMogul (or similar) vs. Buy & Hold for Multifamily

[Ginger Zumaeta]

I'm a noob, but also an accredited investor. I'm wanting to get into real estate investing, and wondering about the pros and cons of private placements via RealtyMogul (or similar) versus buying directly.

Ideally, I'd like to be as passive as possible, but trying to weigh that with the returns of purchasing directly. 

For example, one possible investment on RM targets a 17.2% IRR and 7.2% cash on cash -- which is higher than I'm seeing where I'm currently looking (San Antonio).

On the surface, the RM option seems so much easier. Am I missing something?

[Arissa Pedroza]

If you are looking into the San Antonio Market, I would recommend a direct buy and hold. Most of the cash flow properties I work with are a min. 10% cap rate and up words of 30% IRR. For example, there is a duplex for $175k in a good neighborhood in need of a rehab of about $15k and each side will rent for $1050 and $1100. I just sold a 4 plex for $122 and he is putting $40k into it and it appraised at $311k and will be renting them for $3050 a month. If you are looking to do higher, there is a 16 unit complex that is for sale for $12900000 and is getting about $12k a month in rents. There are alot of cash flow opportunities and you can be passive with a good Property Management company. Let me know if you need any referrals for one. Arissa