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Updated over 3 years ago on . Most recent reply
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Crowdfund vs other options
recently I came across a few the crowdfunding platforms like fundrise, crowdstreet etc. they claim beating VNQ return for 3 years in the past 5. with roughly avg 8-12%, it seems very appealing. I think it offers a lot more options for little fish like me, who thought you have to save and save and save....till the day you can invest...but still mama papa shop bearing all risk by myself.
aside from the fact that some of them would require being accredited investor, how people view this type of investment here? and how it compare to e.g. syndication that I heard a lot from this forums? (like risk, return, size of projects, level of liquidation?)
assume ~$1.5-2M borrowing power, $400k liquidated assets as a scenario for the above comparison??
Most Popular Reply
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I was in a similar spot when deciding to move away from single family. Ultimately, I chose the route of investing in private placements (syndications) with a goal of being truly hands off and having access to larger deals with greater economies of scale.
Currently, I am invested as an LP into 17 deals over the last two years and at this time each one is at or above the net operating income marks vs the projections at this point in the deal -- three of them have now gone full cycle as well.
One of the reasons why I chose a syndication over crowdfunding was access to the sponsor -- personally, I bet on the jockey over anything else.