All Forum Posts by: Mark Robertson

When I read the topic, I looked up and I could have sworn I saw vultures circling.  Sure enough, I clicked and bam there they are trying to get a piece of that sweet $300k.  Everytime someone post I have $xxx to invest, the same folks come out of the woodwork with "advice" that involves your money getting in their pocket.  BE CAREFUL!  Find your own deal/investment,  don't let them find you.

Those are horrible terms! There is 1000's of syndications and crowdfunding deals that offer 8% pref with a 70/30 split or better. (with the investor getting 70% after the 8% is paid and you receive your return or capital).  I am in deals from 15% preferred 50/50 to 8% pref 90/10.  5% is a typical management fee.  I would run not walk away from this deal.

Also read the ppm and find out what all the gotcha fees are.  Asset management fee is a favorite that can kill your returns if not structured fairly. 

As an an investor, I would run away from any sponsor that even considered such a one sided structure. Greed will make you bleed.  8% pref 70/30 split. After refi 70/30 split. Simple. You are looking for an unsophisticated investor.  Maybe in the old days you could find a few investors to fall for such a structure, but the the deal flow and knowledge that the internet provides should make it untenable. 

Diversify, be patient and do not respond to any request in your BP inbox. Thee are many trolls are BP looking for post like yours..They want what you have...Money. (Ignore the word DST..a post about will come any hour now) Its very late in the real estate cycle and the stock market is at an all time high. I'm about 50% in stocks and bonds and 50% in real estate syndications (crowdfunding).. Do you want active or passive income? That is the most important question you need to answer.

Sorry to burst you bubble,  but your can not crowd fund your first deal. Investors look for experience and a long track record. You will not find it very hard if not impossible to crowd fund your first deal.  Use friends and family until you are established. 

If he can do a solo 401k, then he has almost unlimited options. A Self Direct IRA is another option, but it does not have the freedom of a solo 401k. Syndications, crowdfunding and direct investing are all on the table. I am all about passive, so I do syndications and crowdfunding.

Most real estate crowdfunding sites are  open to accredited investors only.  The few that are are pretty much private REITS. (Fundrise, RichUncles and Realty Mogul)

I used and recommend Mark Nolan with Mysolo401k.  Members of the 506 Investor Group have used  others as well.  Based on their feedback, about 50% are really good, the other 50% seem to be clueless. BP is fine, but talking to actual customers is the best way to decide imho. Ask for references with whomever you choose. 

I would say you would need to turn that $120k a year into about $3 million to hit your cash return goals in 10 years. My crowdfunding portfolio of over 50 investments is averaging about 10% cash on cash. My goal is for a 15%-to 20% IRR for the portfolio. Its on track during the last 3 year, but these have been the best of times. The rubber will meet the road after I gauge my investments after the next downturn. Trying to be defensive with 50% in self storage and mobile home parks, but only time will tell.

It's late in the cycle so tread carefully as you look at the many crowdfunding deals. All Crowdfunding portals are not created equally as far as fees charged to investors.  Platform performed due diligence and investor communication varies widely as well.  Fall in love with the sponsor first instead of the deal.  Good luck!