Author Topic: Real estate crowdfunding for accredited investors  (Read 240 times)

KBecks

  • Handlebar Stache
  • *****
  • Posts: 1437
Real estate crowdfunding for accredited investors
« on: December 03, 2018, 09:35:56 AM »
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

  • Magnum Stache
  • ******
  • Posts: 2876
Re: Real estate crowdfunding for accredited investors
« Reply #1 on: December 03, 2018, 10:12:18 AM »
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

  • Handlebar Stache
  • *****
  • Posts: 1007
Re: Real estate crowdfunding for accredited investors
« Reply #2 on: December 03, 2018, 12:18:37 PM »
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

  • Magnum Stache
  • ******
  • Posts: 4605
Re: Real estate crowdfunding for accredited investors
« Reply #3 on: Today at 10:42:49 AM »
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.