Co-living project investment opportunity in San Francisco

[anni]

Last year I was looking into possibly moving to LA. A few friends of mine had done the same and were enjoying their experience in co-living arrangements. If you're not familiar, co-living is usually just sharing a furnished apartment with strangers in a larger home that is managed by a company.

One of the co-living companies in LA is called Starcity. I was just checking up on their rent prices and found out they're offering a low-threshold investment opportunity in a new project in San Fransisco...

Do you think they're doing this because they're having trouble securing traditional funding? I love the concept as a consumer, I think it's particularly compelling given the 50% affordable housing plan that they have, and I'm tempted to gamble a little here just because I have no other adventurous investments.

What do you think?

Edit to add... It seems I can't get in on it even if I wanted to :) investors must be "accredited" which apparently means >$1M net worth excluding your home, or >$200K income two years in a row.

[SndcxxJ]

Requiring accredited investors are common place on many investments.  The companys serving accredited investors aren't required to meet the same disclosure requirements as those that serve all people, probably because the SEC figures if you are accredited you know your ways around finances enough to not need their protection.
As for the investment opportunity, I don't know anything about co-living or starcity, but I do know there is no lack of funding for decent investments right now.  If they are having trouble securing funding and have to turn to accredited investors I would investigate very closely because the investment might be poor quality.

[electriceagle]

Companies like this are getting killed in San Francisco because remote work is letting the young, highly paid tech workers who they normally rent to move away.

If I were you, I would be happy to have missed this "opportunity".

[affordablehousing]

This is a horrible deal. Run from it.

[trollwithamustache]

They are doing this because they cannot access traditional capital. So is that because they are too small? or because the returns aren't so hot?

I'd also note that if rents in SF are going down and Single family home prices are flat to up... this does not seem like a Warren Buffet Blood in the streets time to buy.