All Forum Posts by: Adam Bontrager

Do you have some cash available that you want to invest in real estate but don't want to deal with contractors or tenants?  If so, look no further.  Diversify your investment portfolio by investing with an experienced developer.  Low minimum investment amounts and returns between 8% and 24%

Per SEC regulations, please PM me or give me a call for details about available projects.  

@George Dai

Welcome to BiggerPockets! Always glad to see investors in the crowdfunding space getting involved on BP. There's a wealth of information for real estate investors in any niche whether that be buy and hold, flipping, crowdfunding, HML, etc.

@Michael Kotas

Welcome to BP and congrats on starting out on your real estate adventure.  

There's several different strategies available based on what your goals are.  

Rental properties tend to be a bit more hands on than crowdfunding.  With crowdfunding, you're essentially pooling your funds with other investors to invest in real estate projects you might not be able to take on if you're simply operating on your own.  In my opinion, crowdfunding offers an opportunity for a bit more diversification.  You're able to put a smaller amount into several deals rather than putting everything you've got into one deal.  

With that being said, you do lose a certain amount of control with crowdfunding.  If you own a rental property, you're making the decisions about maintenance, repairs, approving tenants, etc whereas with CF, you're relying on the sponsor to make these decisions.  Personally, I'm looking to eliminate as much headache as possible so the passive investing strategy works better for me.

Feel free to reach out with any additional questions.  I'd love to be of assistance.

@Emilio Basa

Typically with a multifamily deal will have a credit partner to provide the majority of the funding.  The equity portion is typically broken down and divided between a limited and a general partner.  The general partner is usually the one who is actually operating the project and has the greatest risk but then also has the greatest opportunity for profits if the project does well.

The credit partner (typically a traditional bank/loan product) has first priority and senior claims to cash flows from the property.  

After the credit partner has been paid, the limited partner is generally paid next.

The general partner is paid last and typically receives a larger share of the cash flows after the limited partner has received a predetermined rate of return.

This is the structure we've used on our multifamily deals so far.  I'd be happy to discuss this with you further if you have additional questions. 

@Jeremy Margaritondo

Welcome to BP!  This is definitely the place to be if you're ready to take control of your financial future and start investing.

I'll reiterate what many others have said and tell you that the midwest is a great place to invest, particularly when it comes to turnkey properties.  Chicago, Memphis, Indianapolis, and the Cleveland market where I invest all have some great opportunities available.

Feel free to reach out if I can be of any assistance.  I'd be happy to help.

We always have deals in the pipeline available for accredited investors who want passive investment opportunities.  Our sponsors are real estate industry experts and our own team has over 100 years of cumulative real estate experience.  Send me a PM if you're interested in learning more about our strategy and investments.  You too can invest in cash flowing real estate investments and start building a resilient portfolio immediately.

@Alex McGhee

I'm guessing you already know the basics of crowdfunding but I'll include the high points.  Real estate crowdfunding is simply a way for investors to use modern technology to pool their resources in order to fund larger real estate assets and projects.  Most of the interaction between the project operator and investors happens over the internet rather than face to face.  This allows information to be shared quickly even when the involved parties are hundreds or thousands or miles apart and means an overall easier transaction for everyone.

As a potential investor in crowdfunding projects, it's important that you trust the team you're working with and there really are some phenomenal real estate teams out there.  You likely won't ever visit the property so you should do your due diligence before going into business with a company.  Once you identify a reputable operator that matches your investment strategy, I think you'll be very happy with the results.  In our experience, once investors successfully complete a project with us, they love the results and are eager to reinvest and continue building that cash flow.

While there are deals where the "crowd" has a first position lean, many of the deals I've seen involve a limited (the investors) and general (the real estate operator) equity partner.  The limited partner (the investors) earns a preferred return and is paid back before the general partner.  This strategy aligns the interests of the operator with the interests of the investors and ensures that they do everything possible to make the project a success.

Please let me know if you have any questions I can answer.  I'll be more than happy to help.

@Gen Young

Congratulations!  Many investors aren't fortunate enough to have a sum of money to start with.  You're definitely in a better position to start than the majority of investors.  With that being said, since you have some capital, you have more to lose if something goes wrong.  

First and foremost, you want to consider is how active a role you want to take in your investing. There's options for investors of all kinds. On one side, you can take a passive approach via hard money or crowdfunding, pick a more middle of the road approach and buy turnkey rentals, or go with a more active route and do some flipping.

Once you've decided what strategy you like best, it's probably a good idea to get started investing alongside someone who has a track record and can show that they've managed successful projects in the past.  This will benefit both of you and let you learn a bit more about the business from someone who has experience in the industry.

Feel free to reach out.  I'm happy to help in any way I can.

@Jim Pintchuk,

Welcome to BP!  

Middlefield is actually my hometown but I'm now investing mostly in the suburbs around Cleveland.

This is a great place to learn more about real estate investing.  Let me know if I can answer any questions or be of assistance.

Hello @Sherman Lau,

I don't have any experience with Small Balance specifically but I have worked with some similar funds (crowdfunded projects).  These can be very lucrative investments, especially for distressed property funds where there is significant opportunity to add value.