Why I'm Passing on Open Door Capital Fund 3

[Hamilton Hitchings]

First, I want to say a thank you to BiggerPockets and Brandon Turner for all they have done to help educate investors and of course I love watching and learning from Brandon's videos. Thank you.

When I read that Open Door Capital was offering another fund, I was excited but on reading the docs. However, I decided to pass for the following reasons:

1) The principals running the fund are not putting in any of their own money

2) They take 10% of the initial raise to pay themselves and fees, so you're starting down 10%

3) I would have rather seen 80/20 for 8-15% and 70/30 thereafter

At a high level, I love they are opening this up to all investors and its clear its super profitable for them. However, its really items #1 and 2 that were a deal breaker for me but even if this had not been the case, we still might have considered a bit too risky and might have passed anyway. I'd love to hear other folks thoughts.