This is one person’s experience with RE crowdfunding. Mostly positive so far, except for a fast food restaurant in Florida that went belly up.
Not sure what’s wrong with its date but the article is from late 2020, not 2017.
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this is really intriguing. We have two FT jobs and two small children so not a lot of time to be hands on landlords and even managing property managers seems like a lot to ask, so I’ve been looking for something like this…
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Managing property managers isn’t too taxing actually. The problem is that most are not that good at cost control and tenant screening. If you found good ones things can be pretty much on auto-pilot.
To me personally crowdfunding is intriguing because of the exposure to market segments that are usually beyond reach, like office buildings and large apartment complexes.
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And mobile home park and storage units.
I tried a bit of crowd funding as well, personally it’s all about getting good sponsor so after a few tries I stick with some syndicators I know and trust.
Are you just partnering with local people now?
Yea one of them is local builder which we sometimes talk about here. Another is based on Santa Rosa but they syndicate large apartment complexes all over US.
Has anyone worked with Grocapitus group ? https://grocapitus.com/ They sponsor deals around the US. They have shifted their strategy to more new construction as MF properties deals are harder to find now a days. Downside I see with new property construction is longer feedback time as it takes 2-3 years before you see any cash-flow.
I know Neal for awhile even before he started Grocapitus. But I never manage to invest in their projects.
Is there a reason you have not invested with them ? is it because you are getting better returns somewhere else or you do not feel comfortable ? His projects are very well marketed and he is good at promoting. When I listen to him, I feel he knows his game well, but again that’s true for many other people selling their products.
I almost invested one time, but I was late (it was about storage units). Part of my hesitation is he’s good at marketing and I felt too good. Even I asked for downside the project, the answer is we are conservative and we have more upside.
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