Hi, I always owned a decent portion of REITs as part of my portfolio, but I would like to increase my passive income from real estate by investing directly in commercial real estate, specifically apartment complexes. I don't have time or skills to directly buy SFH myself and I live in the Bay Area where prices are crazy, so I would like to find a sponsor to passively invest with. I am accredited and I don't want to invest in the fundrise.com of the day, what they offer seem very "bottom of the barrell". I would rather find some sponsor who would like to accept a more limited number of accredited investors with whom to build a long-lasting relationship (ideally for decades and many deals), and in exchange I would be happy to invest larger sums of money (e.g. 100k per deal?). I am also interested in getting tax benefits such as depreciation being passed onto me, and perhaps the sponsor equipped with doing 1041 exchanges to defer gains indefinitely. Any recommendation?
REITs and hedgefunds
I have the same thoughts, happy to partner up and do some sort of syndicate deal if possible.
Rofl. I too would like all of the upside and tax benefit for zero work. Sign me up.
So are you saying that all syndications are a scam? If not, I don't follow your point and would appreciate to get an actionable advice. I never said "all of the upside", I know that sponsors would have to take a cut (e.g. 8% preferred to the investor, then split the rest plus management fees etc). I have heard of many wealthy investors who diversify their money in passive real estate syndications (which is exactly zero work).
A scam no, they just don't meet your requirements. REITs and real estate holdings are great for passive cash flow but if you want the upside and tax benefits you have to so a tiny amount of work yourself.
I am interested in something like this too
Will you co sign loans? I had several friends looking for funding and also credit for commercial and mf properties. I never agreed to join because of having to cosign on the bank loans and bear risk beyond my capital.
can you DM me ? I can cosign if the deals are great and make sense from cash flow perspective.
Buy property in cheaper markets like the Midwest. However as others have stated “a do nothing and reap the rewards” situation is not realistic. Interest rates are low so there’s not a lot of benefit of choosing you over a bank. Maybe if it was the 80s and rates were double digits that would be different.
OP you can check out companies like 37th parallel and ground floor. I haven't invested in either so no personal experience. General rule is 8% to investors and 80-20 after that with some fixed fees. Also some turn key providers will do what you want, but not sure how much fees are and how we can trust those. Please share here/DM me if you choose any, interested to know what you will go with.
Tech Industry
Yesterday
1925
So hard being a women in tech industry
2024 Tax
Yesterday
3659
Biden’s new tax proposal is wild
2024 Presidential Election
Yesterday
1001
Who are you voting for in the 2024 Presidential Election?
2024 Presidential Election
Yesterday
2384
Biden ruined America and tech! Tax plans are insane
Tech Industry
2d
54197
Goog Employees Arrested
Go buy a complex directly and hire a PM company.
Too risky and labor intensive, I just don’t have time and skills. I’d rather spread say 500k over 10 different deals and have an experienced operator lead the deals.
So you think those 10 different deals wont be labor intensive?