Investing passively (none accredited/ sophisticated investor)
Good morning everyone,
For someone who'd like to capitalize on investing passively in multifamily businesses, where and how can he/she look for to invest in a smaller amount. Obviously for an operator to create a, for example, 506 B fund, they're not going to be able to advertise the investment per SEC regulation. So questions that come in mind, where to find a good operators and how to vent them to make sure your money doesn't end up in a scam?
Your thoughts are appreciated :)
Most Popular Reply
Great question.
In order to find 506b deals, you must have a prior relationship with the syndicator sponsor.
Most 506b deals still have a $50,000 minimum investments but you can find some that accept $25,000. I recently invested in and completed two 506b deals - one with a $25,000 minimum.
So you need to network quite a bit.
Listen to podcasts, meet-ups, Google searches.
The general rule is you need to have several conversation or communications with the 506b sponsor before they can offer you a specific opportunity. 30 days is a general rule of thumb
Hope this helps.
Arn