Direct syndication vs on syndications via web platforms

[Rachit M.]

Hello everyone,

It seems like sites like crowdstreet, cadre, realtymogul etc offer specific syndication opportunities for a $25k - 35k minimums whereas "directly" working with folks doing syndications not through such web platforms requires $70k+ minimums typically. And there seems to be no difference in the the projected returns (IRR, multiples etc) in general.

It seems one would be able to distribute the risk across a couple investments working with web platforms as opposed to the off platform investments which seemingly offer the same returns at higher minimums. Even the sponsors seem to be more exprienced ones (as opposed to off platform folks) on the platforms in general and platforms claim to have some vetting process. I am new to this and only have invested in one syndication so far, we will see how it goes. I am looking to invest in more and am wondering if there is any point in looking at off platform opportunities (several bloggers, podcast folks often have websites where opportunities are advertised). What are some of the benefits of going with off web platform opportunities in general?

[Paul Moore]

Hi @Rachit M. and @Inessa Bliznetsova. You are talking with the man who has perhaps more experience in this realm than anyone: @Ian Ippolito. You should definitely go to his site, The Real Estate Crowdfunding Review. He has a lot of information on how to vet a syndicators through a crowdfunding platform or off-platform. There are many experienced investors there who will give you their honest opinions. Happy investing!