All Forum Posts by: Paul B.

I am a student of the program and have invested in a number of deals with Brad's students. Most have performed well, but just because Brad's coaches have reviewed the deal, it doesn't mean it's necessarily good. You still need to do your own due diligence. I was not comfortable with the way everyone started using bridge loans and floating rate debt in the last 2-3 years, so I avoided those type of deals. I haven't lost money yet, or even had any deals put out a capital call, but it is still a risk. 

As others have suggested, it may be possible to replace the GP if enough investors vote on it. Just keep in mind that if the deal is really screwed, I doubt anyone competent will want to touch it. So don't vote out a GP unless you have a suitable replacement lined up. What you can do is demand the financials as another commenter has suggested and at least try to understand what is going wrong. Hopefully the GP has still maintained communication to the investors on a monthly basis. Quarterly might be acceptable if the deal is performing well, but I still think monthly is better.

There are articles and podcasts on this very site about that subject. If you're interested in more in-person training, I agree with the above post that Brad Sumrok runs a good educational program. The Old Capital podcast isn't quite for beginners, but it's a good resource too.

Brad Sumrok has a good conference July 16-18 in Dallas, but you can also attend virtually. 

I'm part of another mentoring program (Brad Sumrok) that costs about the same, although I'm at a lower level strictly for passive investors. I would say that many students have found this program to be worthwhile, but you're looking at one that actually guarantees a deal within one year? That sounds too good to be true. Anyone can get a deal if they overpay. I am not even saying Blank's program is bad. I don't know because I haven't checked it out. But I think it is dangerous to make such a guarantee. 

@Ben Durwood

I have never seen audited financials on any of my investments in syndications. Sure, we get financials, and the sponsor does review them and have the property manager fix something if there is a problem with the numbers. But it's not a publicly traded company where the financial reporting must follow certain standards. It all boils down to whether you trust the person handling your money.

You know, I always found that aspect about the Madoff story the most troubling too...the fact that you could have done some decent due diligence on the guy and he probably would have come out clean. 

You got some great responses already, and it sounds like you've already made your decision. So I am only posting as someone who had the same question a few years back. While I did not take out loans to invest in syndications, I did decide not to pay down some other debt in my personal life, because why pay down a 2% or 4% loan when I can make 8%, 10%, 15%, 20% investing in real estate? Well, one of the syndications sold for a pretty weak gain, less than the guaranteed 4% return I would have made by simply paying off that debt. Fortunately, the others have performed quite well, plus I have a good W-2 job so I still would have been able to pay back the loan (even if it was a total loss of capital) and it was worth it overall. So the takeaway is to be aware that there is risk, so it is only a good idea to take a loan that you could still pay back if the deal was a total failure.

I'm a student of one of the groups you mentioned and have found it to be worthwhile. Definitely attend one of their weekend seminars....it's a good way to learn more for a small cost. Have you searched the forum for the names of the programs? There is quite a bit of discussion here already. Or even look at my post history for more information.

??? The fees are spelled out in the private placement memorandum (PPM) and the operating agreement (OA). They can't just come up with additional fees. I only invest with GPs who structure their deals in an investor-friendly manner. Passive investing is not for everyone, but I don't agree with the idea that you're automatically getting screwed. 

There was a story here in Texas about a year or so ago about a man who died at home about three years before he was discovered. He had a pension on direct deposit, and his rent and all his bills were auto-pay, so nobody suspected a thing. 

A better landlord would have entered the property at least once a year for maintenance. Replace AC filter, pest control, fire detector check, anything...  

Many groups are on Meetup....just search real estate and the area.