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Updated almost 10 years ago on . Most recent reply

User Stats

35
Posts
19
Votes
David Hendrix
  • Rental Property Investor
  • Mansfield, OH
19
Votes |
35
Posts

The sexy appeal of investing in the crowd?

David Hendrix
  • Rental Property Investor
  • Mansfield, OH
Posted

So here is an issue that I have been struggling with over the last 6 months.

I work full time at a busy stressful job. I enjoy it, but it does not leave me a lot of time for my suppressed passion of real estate. I have managed to purchase 3 rental units, two are multi units and one SFH. In total, 15 units. I have a property manager and she is wonderful. I struggle with growing this as my area seems to have some opportunities, but it takes time to source the deals!

Then there are turn-key solutions. I struggle here as well. They all sound great, but I need to be able to see my properties at least once every couple of months and I hate the idea of investing long distance. I have and am considering something here, but to date have not pulled the trigger. I have a pretty decent market in Columbus Ohio within an hour's drive.

Then there is real estate crowd funding. This seem sexy to me - most of the deals meet my cash on cash return requirements when I buy and hold. I do not get appreciation or the tax breaks, but I do not expect appreciation in my area anyway. The ease of these programs are very intriguing to me! I get to have a professional vet the investments and I get to own little pieces of a bunch of properties. I could just invest in an established REIT, but where is the fun in that? I do have some money invested here. My problem is, I will consistently have to work these assets as the loans/equity are typically less than 5 years in tenure.

I would love to see some discussion on this topic. Is this a good subject for #ASKBP ?

Anyone else out there dealing with the same dilemma?

Thanks!
Dave

Most Popular Reply

User Stats

1,270
Posts
704
Votes
Trevor Ewen
  • Rental Property Investor
  • Weehawken, NJ
704
Votes |
1,270
Posts
Trevor Ewen
  • Rental Property Investor
  • Weehawken, NJ
Replied

@David Hendrix

It's always nice to read a post and think 'this person has the same thoughts I do, all the time.'

I think we may be the smaller half of the BP crowd, but I do work full-time and have no intention of leaving my job. As a result, real estate become a 'suppressed' passion as you refer to it. I think this is the struggle we will always feel. On the flip side, we have sources of income that come from outside the real estate market... there are plenty of partners looking to have us on the money side of the deal.

In regards to your comment on REITS, in addition to being boring like you say, I actually don't consider them to be part of a physical real estate investing strategy. I wrote a post on the matter here.

As for crowd funding. Smaller scale syndicated deals with 10 or less investors still manage to provide a small sense of involvement without the hands-on risk of running the flips/rentals/etc. This is something I have grown to like with our last deal. In the future, I see myself adding value to these deals by bringing in other investors from my network.

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