All Forum Posts by: Mark Robertson

I think the term is "opportunudist" investing

I have not used the service, but I have used Amy as an attorney.  She is top notch and knows the syndication regulations inside and out.

In this day an age, syndications are done online and its called crowdfunding. With Crowdfunding, you have access to tremendous deal flow.  With deal flow you can weed out sponsors that:

1. Have lost investor money

2. Have little to no experience

3. Charge fee that are too high and too numerous

4. Have tiered promotes that take the lion share of the profit

5. Over promise and under deliver

6. Prey on the unsophisticated by trolling them on forums

7. Set up deals where the interest of the investor and the sponsor are not aligned.

8. Communicate when they want your money and then nothing once they have it

You rule out the 90% that do the above and high returns and long term success investing in real estate is in reach.

Every crowdfunding deal is different as far as term is concerned. Debt deals can be 6 months and some equity deals 10+ years.  The term is listed on the deal.  You want to give the sponsor flexibility on the exit time table.  You would never want to force an exit to an exact date...ie  to a period similar to 2009.  By and large crowdfunding is just old school syndications online.

I would post a question on BP about having $500k and wait for a guy that has made 3 post in his life that promises 50% return on your money, figure out how to get to his site since he cant post it, but may spell it out with xxx dot com.  Then I would get a certified check and send it to him.

Sit back and wait and wait and wait and wait for you distributions. Yea that's the plan  :)

I agree with what most people posted from track record to background check and everything in between.  It also very important that their structure is aligned with the investor. Low fees so they only make money if you make money. The promote should be 70/30 or higher.  80/20 is better but tough to find.  They need to have REAL skin in the game.  Not just their upfront fee.  Money from their own pocket.  Some have GP funds which is really investors money, but they will claim it as their own.  Ask to see their reporting statements from prior deals.  I rarely trust a syndication that can't communicate  or produce an informative/accurate/timely investor statement.  

If you learn one thing in this lifetime ... Learn this.  Do not 1031 your hard earned money into a DST. Period. 1031 into other properties or even a TIC with just a few other investors. Very few syndications can take 1031 money. Your name has to be on the title. They only person that likes a DST are the people that make money selling them. By coincidence, that is who recommends them. The things in life that make you go HMMM.

Syndications and online syndication are great options, if you can find one with a long track record and one that does not screw you with fees. It can be done, I averaging 10% cash on cash for the last 2 years. The syndicated investments that have gone full cycle averaged over a 20% IRR.

No one can post syndication deals unless they are 506c offerings.  Otherwise they have to have a relationship with the investor to present them.  Real Crowd and CrowdStreet are the 2 largest 506c platforms that list  online syndications...ie Crowdfunding deals.  They put up at least one a week.

I've made 60+ equity crowdfunding/syndicating investments over the last 3 years.  My cash on cash return last year was 9.8%.  The vast majority of the distribution was tax free last year.   Note that it was actually tax deferred and the man will eventually get his take.   The biggest positive is its 100% passive, once you do the due diligence and make the investment.  You also get diversification that reduces your risk.  Diversify geographically, across different asset classes, different sponsors etc.

The average projected IRR is 15-20%. It may take a few years to reach double digit returns and you need to be prepared for the next recession. Invest defensively at this stage of the cycle.

@Joseph Bramante  "for somebody who gets paid to provide a due diligence review of properties with no investment to lose if they're wrong"

What are you talking about???  I do not provide due diligence review or any property or investment. If you bothered to look, the site's members rate and review sponsors .. ie syndicators.  Investors with actual experience with them rate them so newbies will have some idea or who they are dealing with.  I stand by my statement that giving your hard earned money to random people that private message you or respond to a forum post is crazy.

I would also love to know who is paying me.  Let me know, so I  can go by and pick up my check.