All Forum Posts by: Jim McWethy

@Kevin Lefeuvre, a very small scale answer to your question, we have a few 3-season single family vacation rentals in Gloucester, MA. Bookings for July and August are way down. We bought a 3rd one in all cash deal in September 2019 before Covid and definitely expecting to cash flow less in 2020 than originally modeled.

On a larger scale, a friend in manhattan real estate met with a few bankers and tern sheets for hotels are being pulled, no financing.

@Ian Ippolito, that is fantastic info from a pro CRE investor to a newbie. Invaluable for me to know the types of things you look into. I'll go out on a limb and say most people probably don't do that level of DD. Good for you!!

@Ian Ippolito, thanks for your response. When you get a minute, I’d love to know what aspects of the sponsor deal you look for to determine the risk level you’re willing to endure. If you’re looking at 80-100 deals or so, and picking from 4-5 that are conservative, what aspects differentiate ghose from the more risky deals to you?

I signed up with crowdstreet as an accredited investor and have listened to three sponsor pitches this past week. For example, one of them being a $43m raise on a 330-unit class A multi-family development in Houston led by Guefen Development, Target IRR 22%, sponsor co-investment $921k, $25k investment increment, target hold 3 yrs.

I’m deciding between utilizing Crowdstreet vs doing a local PE raise but a lower target return rate of 8-10%/yr but with a 7-yr target hold.

QUESTION for the Bigger Pockets crew: who has hit the invest now button on any of these crowdstreet deals and what has your experience been with it?