All Forum Posts by: Andrew Hogan

Disclaimer: I'm probably biased because I've lived in Indianapolis for the last 5 years :)

If you're set on BRRRR, I'd recommend higher-quality neighborhoods in suburbs of Indy like Zionsville, Carmel, Fishers, Noblesville -- they tend to attract higher-quality residents have less crime, and have less surprises than some of the 60-100 yr old homes inside the I-465 loop.

@William Vreeland

Yep, a recurring theme is that communication from the operators is essential -- especially during challenging times. Investors want to hear good news fast and bad news even faster... 

Evan and Jay talked about other operators doing "Skinny" deals, with not enough in reserves and/or too much leverage. You simply can't be cash-poor today or you're toast.

I suppose "Only when the tide goes out do you learn who has been swimming naked.” 

- Warren Buffett

 @Evan Polaski Always love a debate with you amigo. They just haven't gotten around to transitioning to a 506(c) yet? Don't they have to refile everytime there's a new offering? Aside from allowing 35 non-accredited investors (or 3.5M if they all invested 100k) what is so much easier about filing for a 506(b) that the long time proven operator prefers?

Not trying to be contentious here but hope this dialogue can educate everyone on the forums :)

Keep doing what you're doing, wait until you're accredited. Sponsors of 506(c) in my experience are higher quality than those doing 506(b). 

Also the series 65 license can get you accredited. 

 As an investor it seems like an unnecessary layer of the cake when I can go directly to the sponsor. Best to pick a few favorite jockeys vs spreading way too thin without adequate due diligence...

@Randy Rodenhouse Right, we seem to be talking about the same escrow issue. Hope there isn't too much exposure but wouldn't surprise me if somebody ends up with a fat fine from the SEC after this.... 

Just got off with an investor who was about to wire us money from Yieldstreet but his account with them is now frozen until further notice.

Apparently they use a third party to escrow all funds and that company has just filed for bankruptcy.

This is really unfortunate for those investors who are exposed. 

Anybody know more info? Is Yieldstreet similar Crowdstreet, Realcrowd, and Fundrise? I've heard very mixed views so just trying to understand better.

I know investors who invested the minimum amount with us and much more with another group...

They ended up losing money with the other group. 

When asked how they decided to do that the investor said, "well their projected returns were higher than yours."

Then I took a look at their offering memorandum which showed four different capital raising groups for a smaller equity raise. Not only that, most of the "GPs" had been working in Tech their whole careers and had only been into real estate the past couple of years.

Don't get me wrong, we have a lot of very smart passive tech-industry LPs, but you want a vertically integrated machine of humans with deep real estate experience. Further, too many groups coming together can mean too many cooks in the kitchen and lack of the ability to execute the biz plan properly.

You bet on the jockey first. 

A lot of analytical numbers brains out there prefer to see this data side by side but you need to also look at the invaluable "intangibles". 

First off @Jon Zhou Really sorry to hear that. Unfortunately I hear this happening more and more in the industry. 

Nobody is immune to storms. 

Are there certain things sponsors can do to help avoid such things and weather the storm?

- Absolutely. 

Depends how your PPM was written up but typically I see the ability to be diluted vs contributing additional capital.

When deciding on if you want to participate in the additional/unexpected capital call, an investor must ask themselves this question: 

Do you believe your additional capital will plug the holes or will you be bailing out water of a sinking ship with a spoon?

Again, sorry to hear that and hope that you're able to preserve some capital and embrace these lessons for future decisions.

All the best.

Sounds like a great sales product for that coach but not a great wealth building product for you.

I'd be wary of these "student army coaches". 

There is a lot of free education out there and few hundred dollar courses before you commit larger sums of capital to "coaching"

All the best @Olu Efunwoye