Direct Fractional Investing

[drairlimpid]

Hello MMM community!

I recently heard about direct fractional investing through an online website and thought that it would be a great idea to start a thread about this idea via this community.  I really don't know much about this topic and plan to research more in-dept about this particular field.  From what I can understand so far, it sounds like direct fractional investing is when a bunch of people coming together and pitch their money into a pot.  This pot of money is run by a private investment group.  They purchase and manage real-estate properties on behalf of their investors.  That's my understanding so far.

I'm curious to find and hopefully learn more about the pros and cons of this type of investment.  What are your experience with it? What are you recommendations?  Is this type of investment better than Vanguard REITs?  Thoughts?

[arebelspy]

Why would you consider investing in something you don't understand?

Here's a big warning flag to me.  Google:  direct fractional investing

Top hit?  This thread. Created four hours ago.

That's...not a good sign.

Google it in quotes. There's literally two links, both from the same one guy, Dennis Bethel, talking about it, both created this month.

No established track record?  Something completely brand new made up?  Using handwaving vague language intended to confuse?  Sounds like something I'd stay far, far away from. 

[drairlimpid]

Why would you consider investing in something you don't understand?

Here's a big warning flag to me.  Google:  direct fractional investing

Top hit?  This thread. Created four hours ago.

That's...not a good sign.

Google it in quotes. There's literally two links, both from the same one guy, Dennis Bethel, talking about it, both created this month.

No established track record?  Smething completely band new made up?  Using handwaving vague language intended to confuse?  Sounds like something I'd stay far, far away from. 

Hi arebelspy!

I wasn't planning on investing on something I don't understand.  That's why I'm addressing it in this forum to see if I can learn something from you.  I'm assuming that since a lot of people haven't reply to this thread, there's not a lot of info out there.

And yes, I completely agree with you regarding the lack of track record. If there's minimal information out there, it would behooves me to not tread into this area.

Thanks!

[dragoncar]

I prefer direct multiplicative investing.  Basically a bunch of people throw money into a pot and I take it all, thereby multiplying my investment.

[KingCoin]

It would be helpful if you gave an example of what you're talking about.

This thread addressed what seems to be a similar idea:
https://forum.mrmoneymustache.com/investor-alley/any-concerns-about-investing-in-crowdfunded-commercial-real-estate/

The illiquidity, lack of track record, and negative selection bias involved in these investments probably make them ill-advised.

[FitStash]

It sounds like a small scale, private REIT.  Fortunately, REIT's have been around a while and aren't quite so back-alley deal sounding.

[drairlimpid]

I think I'll just stick with the Vanguard REIT for real-estate investing. Thank you for all your input.

[arebelspy]

I think I'll just stick with the Vanguard REIT for real-estate investing. Thank you for all your input.

No problem.  Good decision.

I am curious how long until that guy googles his song and dance and sees this thread (or someone points him to it after googling it) and he shows up here with some bluster spouting B.S.  :)