Recommend Syndication Companies?

Question

I've come to the conclusion that Buy and Hold is not for me and I'd rather invest my money into a syndication and let someone else do the heavy lifting. I just want to receive a paycheck!

Can anyone recommend any syndications with a good track record and what kind of returns you are receiving?

I also need a syndication that can allocate larger sums of capital, 6-7 figures.  Some of the syndications I've contacted couldn't handle that.

Thanks!

Mark Robertson · Answer

@Petra M.  I can only imagine what your BP inbox looks like now that you posted that you have 7 figures to invest.  Do yourself a favor and ignore each and every email. Never invest with someone who reaches out to you.  Go to one of the top 10 crowdfunding sites and discover the reputable sponsors on your own.

The best IMHO: RealCrowd, CrowdStreet, Realty Mogul, Realty Shares, Patch of Land and Lending Home.  I also invest with an online syndicator I meet on BP, Jeremy.

PS 8% return on $10 million houses sounds horrible to me.  Too little return for too great a risk. The high end is the first to go south in a recession.

Steven Gesis · Answer

Hi Petra-

Welcome, I would recommend taking a look at www.brelion.com they have some large institutional investments coming down the line, I personally have invested with them and it has been successful with returns in the 14-18% range, preferred every month.

Leslie Pappas · Answer

Hi @Petra M., regarding syndications, if you are an accredited investor, you can buy into institutional grade $50-125M projects with as little as $100,000 and diversify. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse. This is the world of Delaware Statutory Trusts. I wrote a book on this that was released in January called Cashing In Tax Free.  If this interests you, you can start to learn more at my website. Please let me know if I can help. Leslie

Bryan Hancock · Answer

6 figures is pretty common.  7 is less common with most projects currently being offered on the platforms, but there are raises that are several million dollars infrequently on some of the platforms that have been around longer.

Bryan Hancock · Answer

Provided you're an accredited investor there are hoards of syndications presented on crowdfunding sites.  I would recommend you check those out and allocate your capital across projects to get some promoter and geographic diversification.  You can also invest in debt, mezzanine financing, and preferred equity to get some flexibility in how your money works.

There are tens or hundreds of threads about this topic in the real estate crowdfunding section of BP.  You should probably invest some time in reading those before you make the leap.

Pat Marco · Answer

Since you are in California check out www.Migsif.com they invest in high end residential homes around $10 mil each mainly in San Francisco. This high end market has proven to be much steadier (even in 2008- 2010 that market held up better than any other in the US). We have had a few investors with them since 2009 and they pay a steady 8% per year - your capital would be cross colleteralized against all their real estate assets, which is safer than just against one property like other funds. They have the best liquidity because the requirement is only one year as opposed to other funds that are illiquid for several years to reposition a to petty. The owner/fund manager is an author and a lecturer. So he is always visible and reachable. He has many success stories in YouTube. There is also www.SFIFund.com but this would be great if you want to co-sponsor. If none of these are what you are looking for, you could always invest in REITS but the returns are not fixed and most certainly lower (at least in my experience) -

Disclaimer here: our legal form had done his Private Placement Memorandum and have clients who have invested in MIGSIF - neither I nor the legal firm get any compensation if anyone invests with the above mentioned funds and I am NOT Registered Investment Advisors

Pat Marco · Answer

@Mark Robertson

Mark you need to do some research on pacific heights homes in San Francisco - I realize you are from NC and for you $10mil buys a hotel but in Manhattan NY and Pacific Heights/ SF Bay Area $10 mil buys you a decent house with probably no view - these homes have held the best value when the economy pulled back - maybe you should consider getting an 8% in such funds that focus on these areas - the one I mentioned gives you both: cross collateral security blanket and full liquidity - this is not placing the capital you have in one project and waiting for 5 years like apt bldg investing.

Just keep in mind California investing is not NC or OH etc where ppl promise 20 % return but you are stuck for a long term and at the mercy of market pull backs -

Petra M. · Answer

Thanks Mark!

My inbox has received a workout!  I'll have to separate the wheat from the chaff so to speak.

Petra M. · Answer

Thanks for the leads Bryan and Pat!

Is there a forum for higher net worth individuals looking to invest 6-7 figures?

Recommend Syndication Companies?

Most Popular Reply