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Accredited investors partnering
Is there a way to partner with accredited investors for investing? I recently saw an opportunity advertised but it is for accredited investors only. I was wondering if I could pay an accredited investor money for him to invest and share in the profit?
#3 All Forums Contributor
- Investor
- Virginia
@Ryan Daulton
You cannot do this if the offering only accepts accredited investors.
There are plenty of offerings available for non accredited investors that also have a lot lower barrier to entry
That's too bad because accredited investors have way better investment opportunities if you base it on cash on cash returns. You're right that I have lots of opportunities but they're not as good of opportunities
#3 All Forums Contributor
- Investor
- Virginia
@Ryan Daulton
Define not as good. The increased potential returns comes with significant increased risk which is not playing out well for many right now.
I can't really say much because the information shared was privy only to myself, but it was 20% cash on cash returns. And it's a highly safe investment. But I think you answered my question
Quote from @Ryan Daulton:If it sounds OO good to be true, it often is not true.
I can't really say much because the information shared was privy only to myself, but it was 20% cash on cash returns. And it's a highly safe investment. But I think you answered my question
until a couple years ago RE syndications were regularly returning 20% annual. 1) they were not projecting this high return for the most part. The projections should be conservative. Under advertise, over deliver 2) those days are past. Many RE syndications are struggling. Some are having capital calls. Many are underperforming the under writing.
there is a reason certain investments require accredited investor or existing relationships. These investments have low reporting requirements that can increase risk.
good luck
#3 All Forums Contributor
- Investor
- Virginia
Quote from @Ryan Daulton:
I can't really say much because the information shared was privy only to myself, but it was 20% cash on cash returns. And it's a highly safe investment. But I think you answered my question
Having been in real estate for almost 30 years. I have never seen a "highly safe" investment with a 20% cash on cash.
It is ATM machines. Might not be 100% safe but it seems like a pretty sure bet
#5 Investor Mindset Contributor
- Investor
- Greenville, SC
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#5 Investor Mindset Contributor
- Investor
- Greenville, SC
Quote from @Ryan Daulton:
It is ATM machines. Might not be 100% safe but it seems like a pretty sure bet
The ATM industry is in a huge transition. TR-31 (new mandatory security) requires substantial cap ex to meet regulatory requirements. More importantly, Paramount (Prestige Fund), a large player in the industry has stopped distributions and communication is awful. It appears they executed a purchase of ATMs and their funding fell through and between that acquisition and TR-31, they have a liquidity crunch. I am hearing that a buyout from PE is in process but that is uncertain as of today.
Thanks for this info I had no idea
#3 All Forums Contributor
- Investor
- Virginia
@Ryan Daulton
I have 20+ people I know invested in atm funds and they are not doing well at all. Capital calls, paused distributions…. A lot of negative headwinds.
The rich get richer, and like George Carlen said--it's a great big club...
But given that....don't see the glass as half empty, instead see it as half full.
If you want to be a big fish (accredited investor) RISK your investment money in things you think will get you to that goal.
Plenty of people in here started out as small fish, and worked their way up to being whales. Some took a long time, some took a medium amount of time.
If you're a dead set on being a passive investor, it may take you longer than if you view it as a business and you are involved in it day to day but that's just a guess. I have no crystal ball.
Good Luck!
Yes I totally agree. It's like Rich dad poor dad, do what only 10% are doing
Quote from @Ryan Daulton:
I can't really say much because the information shared was privy only to myself, but it was 20% cash on cash returns. And it's a highly safe investment. But I think you answered my question
"Highly safe" and 20%+ returns are usually not going together. I have a number of friends that believed in similar "highly safe" promotions by deal sponsors and are now deeply regretting the investment.