LP Equity Investment

[Sebastian Bennett]

I only have $50,000 of liquidity I can comfortably invest in real estate and after taking inventory, concluded the types of assets that were available were not where I wanted to invest. I connected with a developer based in Wilmington who is taking a property through entitlements and was looking for some bridge equity while the permitting was completed. I am an LP investor where my ownership interest is greater than the true value of the membership interest, so the collateral is solid. Meanwhile, the GP has the ability to purchase my interest prior to development for an agreed upon valuation. Important to note, I am provided full access to all of the meetings and pre-development functions to grow my knowledge base while I am getting my personal financials in better shape to purchase properties I view as better long term investments.  I want to know if there are other ways I can use limited access to capital to help expediate my growth without paying for guru type get rich quick schemes?

[Kristi Kandel]

Quote from @Sebastian Bennett:

I only have $50,000 of liquidity I can comfortably invest in real estate and after taking inventory, concluded the types of assets that were available were not where I wanted to invest. I connected with a developer based in Wilmington who is taking a property through entitlements and was looking for some bridge equity while the permitting was completed. I am an LP investor where my ownership interest is greater than the true value of the membership interest, so the collateral is solid. Meanwhile, the GP has the ability to purchase my interest prior to development for an agreed upon valuation. Important to note, I am provided full access to all of the meetings and pre-development functions to grow my knowledge base while I am getting my personal financials in better shape to purchase properties I view as better long term investments.  I want to know if there are other ways I can use limited access to capital to help expediate my growth without paying for guru type get rich quick schemes?

 You could always invest in funds like https://fundrise.com/ (allows you to invest in RE without being accredited) or https://percent.com/ (allows you to be a private money lender without all of the work) if you have money and less time. 

If you have the time it's worth looking into doing the typical deals discussed on BP forums like fix and flip, BRRRR, airbnb, etc. If you're managing the deal you'll always have the opportunity for a greater return. However, if you're limited on time passively investing in GP deals that you have fully vetted and trust the operator is a great option. I do that with my SDIRA. I invest into syndications as the LP with my SDIRA vs keeping the money in the stock market.