crowd funding real estate

[Michael Pond]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Invested in 300+ unit apartment complex as a limited partner using a crowd-funding platform. Expected hold period is 4 years with average IRR of 18%. Strategy is value add and income.

What made you interested in investing in this type of deal?

It provides the opportunity for asset diversification, good cash flow and expected appreciation while remaining a mostly passive investment. Allowing me to learn the key metrics of commercial property investing, which I will apply to finding and evaluating my own smaller deals later.

What was the outcome?

Time will tell.

Lessons learned? Challenges?

This is an illiquid investment, so must be prepared to hold it for the duration. Participating in the sponsor presentations to hear their strategy and methods to add value and generate strong returns has been a great education.