New Real Estate Offering from CityVest

[WCIMichelle]

The JKV Access Fund provides an intriguing opportunity that allows accredited investors to PASSIVELY invest in what is usually the most active method of real estate investing–purchasing homes from distressed buyers, renovating them quickly and efficiently, and selling them to new owners, AKA fix and flip. Coming off 2019 where they made 29% in the Southern California workforce market, the JKV Opportunity Fund II is targeting 20% to investors after fees.
For White Coat Investors, CityVest is providing access to this fund for just $25,000 while improving the terms to a 12% preferred return plus an 80/20 promote structure. If you want to diversify away from publicly traded stock and bond index funds with part of your portfolio, but still invest passively in a niche market, take a look at the JKV Access Fund.
https://www.whitecoatinvestor.com/cityvestjkvtx

[Hank]

Why would they give up 20% instead of obtaining bank financing or issuing bonds at 5% or even 10%?

[Peds]

after coming off 31.7% in 2019 from Vanguard REIT, i can see the appeal.......oh wait.....

[Tim]

after coming off 31.7% in 2019 from Vanguard REIT, i can see the appeal.......oh wait.....

You have AA with 31.7% in Vanguard REIT?
Stronger than expected tilt. oh.... wait......

[Nerdyneuron]

Just curious...anyone investing in this?

I am thinking about it and it would be my first syndication/fund.

For those that are investing in this (or have in others), is it preferred to invest as individual investor (since you are a limited partner) or is it advisable to invest via a LLC

[Marko-ER]

So, there's been a lot of conversations on this forum and elsewhere about tax loss harvesting (TLHing). But with wild swings in the markets, some of us have both big losses, but also some pretty solid gains. So I wanted to start an alternative conversation -- options and specifically which of these YOU (mostly anonymous) poster do with your own money. If we get enough interest, it may be good to start a poll too. So here we go:

(1) Donate to appreciated shares to charity with a step up basis ==> YES *
(2) Give away shares as a gift to relatives or people in need ==> YES
(3) Transfer appreciated shares from taxable to traditional IRA as a retirement contribution (instead of cash), then sell/adjust investments as needed within the IRA ==> NO, but looking into it for 2021
(4) Transfer appreciated shares from taxable to a 529 plan (instead of cash), then sell/adjust investments as needed within 529 ==> YES
(5) Opportunity zone fund real estate investing ==> NO **
(6) Others? Like 1031 exchange?? I am sure there are some more complex accounting procedures (trusts, estates, annuities) I am not aware of. Please feel free to add to the list ... 6,7,8, etc.

* bunching on alternate years, as many people I itemize every-other year.
** Looking into it thru syndicated real estate OZ funds (own state, no income tax states to minimize complexity in filing taxes).

[Marko-ER]

Should this be classified as an "advertisement"? At least when I am browsing, there is a banner ad for this same company. At the very least, shouldn't there be a disclosure that WCI receives funds from the company, as an advertiser?

[jacoavlu]

I think it’s pretty obvious

[Marko-ER]

I think it’s pretty obvious

Not necessarily obvious, especially to anyone new to the forum. That's why any conflicts of interest should be indicated front & center.

[VagabondMD]

Why would they give up 20% instead of obtaining bank financing or issuing bonds at 5% or even 10%?

It has been explained to me (in another context) that the fix-and-flip model requires greater speed and liquidity than the traditional banking system will allow.

I have invested in two previous CityVest offerings (Pathfinder and Medical Properties). I am going to sit this one out.

[Lithium]

I think investments are a lot like jobs. The best ones usually don't have to be advertised.

[Hank]

I think investments are a lot like jobs. The best ones usually don't have to be advertised.

I saw a lot more Pacific Life commercials than Vanguard commercials back when we had live sports on TV.

[mcneely011]

Why would they give up 20% instead of obtaining bank financing or issuing bonds at 5% or even 10%?

You can't finance all of a real estate project through a bank. Most banks require at least 10-20% equity in order to approve the deal for financing, which is obviously leant to them at substantially lower rates as you allude to.