All Forum Posts by: Sandeep Anand

Jeff

I think you have the essence of this discussion. It is about assessing different investment options and then deciding which is the least risk and max returns.

So say if RealtyMogul returns 8% in the past. How does that compare to a listed reit fund. 

If you were deciding now to invest how would you assess risk vs. Return in Findrise, Realty Mogul, Public reit fund.

1) how upset would you be if you lost the entire 30 K?

Yes a little maybe more but will not jump in front of a train.

2) is it okay to keep the 30K completely illiquid and inaccessible for the next 5 to 7 years?

That's a possiblity. I am buy and hold even in my stock holdings.

3) Am I right to assume that in the rest of your portfolio beyond this, it's already balanced for risk the way you want across public markets (like stock) and private markets (like real estate)?

I would say I think yes for public. No private market investment yet.

@Ian Ippolito I follow your very analytical blog and have learned a great deal from it. 

So let's assume I am a passive investor that has come into 30k  as risk capital distinct from my portfolio of investments (retirement accounts etc.). I know maybe average in various asset classes I have mentioned regarding real estate plus a great deal more about listed liquid assets in the stock market. 

I have a propensity to take the risk if there is a greater reward and I am looking to generate returns for a longer-term time frame of 5 - 7 years.

How would I go about making my investment decision to deploy this 30k purely as an investor?

@Omar Khan so this is a very timely discussion. You have a provided a great perspective and I will surely love to read your final article.

@Omar 

@Omar Khan So let's assume that 30k is not my entire capital pool but my risk capital distinct from my portfolio/Net Worth/Savings. What would be your analysis of each of the investment categories I mentioned.

I had used High Yield or Leverage as an example you can assume any riskier asset class publicly traded in the stock market. what I am seeking is a way to assess say the risk involved in investing in a specified category versus another and the commensurate return (reward) I should expect keeping non-financial aspects out of the decision.

So again, for example, hypothetically I invest this 30k in a Public REIT I should expect maybe a 5% (assumed with no basis) return YOY or I buy a High Yield ETF that returns 11% (again assumed with no basis) versus if I leverage this to buy a residential property then how to asses this on the same risk-reward spectrum and compare the two?

I maybe wrong but I thought Fundrise and RealtyMogul have funds for non accredited.

Leveraging 30k as a down payment to get a 125k property is not an option?

However my question was more to analyze these asset classes from a risk reward perspective. It is quite clear that one bump down the road would wipe it out. But I am seeking some analytical thought on the risk reward spectrum for these categories. It's a different question.

While comparing investment opportunities an investor needs to assess risks associated and then expect a commensurate return. What would be your advice on the levels of risk-reward grading of the following Real Estate categories?

How would you compare the risk rewards matrix of these versus lets investing in the stock market riskier assets (leveraged ETFs or High Yield, junk bonds etc.)?

Please advise from a passive investor perspective looking to invest around USD 25 to 30k who is non accredited.

• 1)Public REITS
• 2)Private non-traded eREITS (example Fundrise, RealtyMogul etc.)
• 3)Owning residential rental property
• 4)Passive partnerships investing in Mortgage Notes.
• 5)Investing in publicly trading riskier asset classes (example High Yield bond, Leveraged Product, Inverse ETFs etc..)

@odie ayaga

I am still in the learning phase. 

I guess this will have to be a part holder of a performing note on a first lien. Probably risk and therefore lowest return I guess. 

Thank you for the great information. What could be considered a typical benchmark return for a fractional investor ?

Thanks would you kindly point out some of these offerings from reliable sources in the new York new Jersey  PA region.

I am aware of Fundrise and Mogul.