All Forum Posts by: Zach G.

@Brian Adams  @Brian Burke - Thanks. I know an individual personally who is very reputed within the real estate community and also has a syndication firm. They are raising money for a deal for a 300+ luxury apartment in a growing market. I looked at the asset and its a good one. The numbers and the assumptions are quite conservative. They are offering a 6% preferred and target IRR between 10-11%. While I have no doubts about the credibility of the sponsor, the preferred and target returns look relatively low as compared to what I see on some crowdfunding platforms ( RealCrowd, etc.). Typically they offer 8-10% preferred with target IRR 19 - 20%. Hold period 5-6 years. What would you suggest that I do?

@Will Barnard - Thanks for your input. While I have only been active for the past year in real estate investing, I do want to skip the step of starting off with SFH ownership and buying turney rentals. Large apartment building (over 100 units) definitely seem more attractive and I see some quality assets listed on some of these platforms. I do plan to eventually have a mix of directly owned and investments through syndications. Need to do more research on how to vet the sponsors.

First off..Thank you everyone for your response. Much appreciated.

@Ian Ippolito , what you mentioned is correct specially when investing in specific property deals.  I spoke to some of these platforms and they confirmed how the tax advantages work.  I am looking to invest in equity deals for apartments primarily for tax purposes given the tax bracket I am in. I will reach out to you to get more insights given your experience. Apart from my primary home, real estate is not a significant part of my portfolio yet.

@Jason Monroe and @J. Martin - Thanks for letting me know about this local event. I will look it up and plan to join should I be able to convince my spouse :)

@Brian Burke - Thanks for the validation that this would not be a bad strategy although there are inherent risks involved letting someone else manage all the work for you. Will research BP for solid Syndicators. 

@ Lane Kawaoka - Thanks for your response. I looked at the turnkey option but think I am late to the game and numbers don't add up now. I have capital to invest in Multifamily or Apartments which is where I want to focus on. Some crowdfunding sites like Crowd street and Realcrowd seem to have quality assets and lets me connect with the sponsors directly. Understand that there is fees involved but I get to leverage the experience of these sponsors.

@ Jo-Ann Lapin - Other passive investment is primarily in Stocks through our retirement accounts. I have also invested in hard money lending but thats about it. What are some other ones you would recommend in this market?

Hi BP Community -

I have been researching real estate investments for the past year and so far have invested passively through Crowdfunding platforms (Realtyshares, Peerstreet, etc.). Most of the investments have been debt investments and working out well so far. As I look forward, I am wondering whether I should expand on this strategy and continue investing passively through crowdfunding platforms into apartments and commercial real estate (both debt and equity). From what I have read or heard, apartment investing seems to be one of the best vehicles that most investors want to get into. I have a very busy career and with 2 small kids, don't have enough time to invest actively or search for good deals. I live in the expensive CA market so will have to look out of state should I try to do this on my own. I am hoping to generate enough passive income to start slowing down in the next 5 years. Would love to hear what you think of this strategy and what you would do if you were / are in a similar situation.

Thanks,

Zach