Real estate crowdfunding for accredited investors

[KBecks]

I'm wondering how people's experiences have been as investors in any of the following platforms:

1.  Peer Street
2.  Crowdstreet
3.  Fundthatflip

MMM has an article about Peer Street, and I'm thinking of messing around with Peer Street or Fundthatflip on a small scale just to try it out and get a feel for it. Just some toe-dipping.  We are squeaking into accredited investor status based on net worth, and will definitely be building up more as the years go on.

Is anyone here doing this?  For us, this kind of lending fits into our lifestyle better than landlording, for now.

Thanks!

[waltworks]

I have not personally done any syndicate deals like those, but from what I've read, they are mostly a way to extract money from gullible "investors". 

Remember, also, that while all RE is local, the current national-level cycle has ended. Prices are going to decline or at best stagnate for a WHILE. I personally got completely out of rentals as of last year.

If you don't want to put in any work and get RE exposure, just buy REITs.

-W

[tralfamadorian]

I also have never invested with one of the syndication crowdfunding websites. From reading and hearing about the experience of others, it appears that these websites are mostly full of the bottom of the barrel investments and new syndicators who may or may not know what they're doing. Experienced syndicators have their own lists of investors.

It would take more work on your part but I would suggest deciding on the type of investment you want to focus on then find the quality syndicators in that space. You will be able to participate as a sophisticated investor until you're able to be accredited.

[Another Reader]

Would not touch these deals.  If they qualified for traditional financing, they would not come hat in hand to you.  One recently closed up shop suddenly, RealtyShares. 

[mr.neel]

I'm staying away from RE crowd funding for the moment, and starting to look at fund such as:
https://ironbridgelending.com/investors/ (30 day lock out, ~6% Return Rate)
https://www.broadmark.com/ (1 year lock out, ~11 Preferred Rate of return)

[KBecks]

You know I was listening to the radio this weekend and I heard some ad advertising for homeowners to rent out their homes. 

That might just be the sign of something strange going on in the market.  I remember when radio ads were pushing home loans and HELOCS like crazy before 2008.

[Chiron]

There are some duds on these platforms, but also some highly qualified sponsors who use these platforms to get cheaper, easier money than they could via their existing investor base. 

I've invested with two sponsors on CrowdStreet (Watermark and Voyager) and been pleased with the results so far.  Definitely do your diligence and try to connect with other investors to compare notes.