All Forum Posts by: Hamilton Hitchings

In hindsight I regretted not investing in OpenDoor Capital 3's fund.  However, it really came down to the fact we were not ready to invest in syndicate deals.  However, if we had been this was at the top of our list. Mobile Homes are such a great investment area but its way too risky & difficult to invest directly and thus investing through a syndicate / group is the way to go. The returns are very attractive and the biggest obstacle is perceived risk. I think one thing that could help boost new investor confidence is if existing investors in OpenDoor Capital's funds shared their experiences but regardless I think OpenDoor Capital 4's fund is worth a close look.

Brandon, thanks for the response and its always a good sign when the principals do not shy away from hard questions.  Can you say how much you'll be putting in?  With regards to the 10%, here's what I was referring to and maybe you can help clarify what the 10% or $3 million would go for since I am not an expert in this type of offering:

"Company anticipates using all of the proceeds raised in this Offering towards acquisition
of the mobile home parks and activities related to the improvement and disposition of such parks,
except for (i) 10% or $3,000,000 (in the event of a fully subscribed raise) for working capital,
including the Acquisition Fee and (ii) legal and compliance costs of approximately $25,000. "

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.

Is anyone knowledgeable about Wellings Capital? They have a couple of mobile home park, self storage and multi family funds. Any references (good or bad) would be helpful.  Any better alternatives?  Anywhere in the US is fine.