Crowd Funded Real Estate

[Terhathum123]

Quote:

Originally Posted by Onward Real-estate crowdfunding smells. It smells of novelty, faddishness, and over-enthusiastic millennials. Even so, I'm signed up as an investor on several sites (Fundrise, etc.). Every time I get ready to invest something, I get an email like this one, which I got the other day from RealtyMogul, announcing a new investment opportunity: "We partnered with an experienced Real Estate Company that reports to have owned and managed a collective $5 billion in real estate. They currently operate three other properties in the Minneapolis area through a different entity." [emphasis mine] "Reports to have owned and managed"? "through a different entity"? Yikes!

Yeah, when I looked at a few of the offering I thought RealtyMogul seemed to have less quality than a few of the others. I've been pleased with RealtyShares and RealCrowd.

[Terhathum123]

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Originally Posted by OldShooter I have done quite a few deals as an accredited investor, though only one (apartment buildings) in real estate. One of the more interesting rides was Gaming Corp.: Ho-Chunk dispute settled for $42M | National | journaltimes.com We actually owned some real estate but it was not a real estate deal. My view has always been that any deal being hawked to the general public is a deal that is not good enough to sell easily and privately and, hence, nothing I am interested in. This emphatically includes deals that involve a color brochure and a salesman, but I would tend to put crowdfunding into the same category. This may be somewhat unfair because the promoter may simply be someone who is too naive to know how to sell a deal privately, but (a) that would be a warning bell on its own and (b) if I am being unfair, so what? It's my money. The world has changed, though, and there are now investor options for unaccredited investors permitted into smaller and simpler deals. I have a nephew-in-law who just funded a $400K solar energy project that way. It was interesting and, if arms-length, I might have taken a piece. But investing with someone in the family does not feel like a wise thing to me and he, fortunately, agreed. If I were thinking of the crowfunding route I would take the time to find out what my state's current options are for this sort of thing are and find out about whatever national changes there may have been. The last thing I would want to get into is a deal that is totally or marginally prohibited. The easiest way out of a stinky deal is to not get into it in the first place.

I don't necessarily agree with your blanket statements crowdfunding sites hawking bad products. But, I am interested in getting into more private deals and, it sounds like you've had some variety. How do you find your private deals?

[Scuba]

Quote:

Originally Posted by Terhathum123 I don't necessarily agree with your blanket statements crowdfunding sites hawking bad products. But, I am interested in getting into more private deals and, it sounds like you've had some variety. How do you find your private deals?

I go through a hard money lending broker to find deals.