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Looking for RE syndications, where are your go to places to find opportunities?

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  • Looking for RE syndications, where are your go to places to find opportunities?

    I am looking to move a small portion of my portfolio to a RE syndication. Currently, all of my money is invested in index funds, and wanting to diversify slowly into RE. I am in my mid 30's, busy with practice and family, and do not have the bandwidth to devote to hands on RE investments. Currently, I'd feel comfortable with a 25-50K investment, and I am aware some projects have a higher minimum. In the coming year or two, I will be in a position to comfortably invest 100-125K. Syndications seem like a much easier way for a person like me to have exposure to RE and the tax benefits. I've read some other posts on this topic here at WCI, and wanted to expand the discussion on where you all look to find syndication opportunities. Listed below are a few of the options I came across here at WCI.....please provide any input and experience with these companies and any others you have worked with. Thank you in advance.

    Napali Capital
    Praxis Capital
    Western Wealth Capital
    CrowdStreet
    RealCrowd

  • #2
    drmac15, do you have a specific type of real estate you are interested in? That may help narrow down your search. I don't have experience with those companies since I focus mostly on my own syndications, though they seem have a good reputation on WCI. Something I've heard from physicians is that they have a generally better experience when at least one of the deal sponsors is/used to be a physician. Folks I've spoken to have mentioned they feel the physician sponsor can communicate more on their wavelength, will understand value in more similar ways, etc.
    Hope that helps. Sorry I don't have any input on the folks you mentioned.

    Comment


    • #3
      Originally posted by JacobC View Post
      drmac15, do you have a specific type of real estate you are interested in? That may help narrow down your search. I don't have experience with those companies since I focus mostly on my own syndications, though they seem have a good reputation on WCI. Something I've heard from physicians is that they have a generally better experience when at least one of the deal sponsors is/used to be a physician. Folks I've spoken to have mentioned they feel the physician sponsor can communicate more on their wavelength, will understand value in more similar ways, etc.
      Hope that helps. Sorry I don't have any input on the folks you mentioned.
      I am interested more in multifamily unit, but more important to me is track record of sponsor, fair set up for passive investors, and reasonable risk adjusted return for project.

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      • #4
        I'm in a similar position as you, but am looking at funds as opposed to individual properties. I'm currently looking at Cityvest and MLG Capital as well as some crowd-funded individual properties. One thing I'm wondering about is how much of the yield is offset by depreciation on the K-1 (is it a lot or a little?). Also, when starting on the lower end of the minimum investment ($25-50K), how much of the yield is offset by the costs of having to do multi-state tax filing? Or is that not always the case? When starting with lower investment capital is it better to do a dividend fund with slightly lower yield but not have to worry about multi-state filing?

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        • #5
          I talked to DLP, have an appt with Praxis . I agree it is hard to know where to go with your money. I am currently reading The Hands Off Investor--written by main guy from Praxis--it is a good book, I'm half way through. It clarified IRR and other metrics used well. I ordered it on amazon as like to hold a real book in my hands but you can download it for free on the Praxis website. I also want to look at Equity Multiple but they keep asking me for my personal info before I can access the opportunities-- which is annoying.

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          • #6
            Not sure if you like podcasts, but if yes, then consider RealCrowd podcast, Mara Poling podcast, and the various BiggerPockets podcasts. The more you know about investment risk profile, sponsor, asset class, market, financing structure, etc, the more likely you are to choose good investments. Of course, sometimes it’s better to be lucky than to be good, but that’s not a strategy. At this time, I can’t really recommend any sponsor or syndication website without reservation.

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            • #7
              Coming back to this thread...here we are a year later and I've found myself circling back to this very same issue having not made an investment yet. I have more education, but some similar questions. Has anyone pulled the trigger in the last year and glad they did? Of course the investment options aren't the same as a year ago, but most of the sponsors I keep hearing about are similar...

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              • #8
                Originally posted by drmac15 View Post
                I am looking to move a small portion of my portfolio to a RE syndication. Currently, all of my money is invested in index funds, and wanting to diversify slowly into RE. I am in my mid 30's, busy with practice and family, and do not have the bandwidth to devote to hands on RE investments. Currently, I'd feel comfortable with a 25-50K investment, and I am aware some projects have a higher minimum. In the coming year or two, I will be in a position to comfortably invest 100-125K. Syndications seem like a much easier way for a person like me to have exposure to RE and the tax benefits. I've read some other posts on this topic here at WCI, and wanted to expand the discussion on where you all look to find syndication opportunities. Listed below are a few of the options I came across here at WCI.....please provide any input and experience with these companies and any others you have worked with. Thank you in advance.

                Napali Capital
                Praxis Capital
                Western Wealth Capital
                CrowdStreet
                RealCrowd
                If you're not well versed on how to vet a RE syndication, I really recommend Peter Kim's course (he gives it along with Mith and Pranay) on the subject. Once you've learned how to vet the deals, start calling syndicators and get on their list for deals. You'll get emails or calls about upcoming deals. If one looks interesting you can make a soft commit, and then you'll have access to the private placing memorandum. Look over this with a fine tooth comb before you decide up or down whether to invest. BTW, if you're a practicing healthcare provider, it's highly unlikely that you're qualified as a real estate professional under IRS guidelines. That means that any pass through depreciation can not be applied against your active income (wages or private practice income) except for $3k. The rest has to be "banked" for use at a future date.

                Comment


                • #9
                  Originally posted by mianesmd View Post
                  Coming back to this thread...here we are a year later and I've found myself circling back to this very same issue having not made an investment yet. I have more education, but some similar questions. Has anyone pulled the trigger in the last year and glad they did? Of course the investment options aren't the same as a year ago, but most of the sponsors I keep hearing about are similar...
                  in a similar spot here. trying to decide where to jump in. I've been listening to a lot of the "Left Field Investors" podcasts which are great and there is a list of syndicators on that website as well.

                  https://leftfieldinvestors.com/syndicator-list/
                  https://leftfieldinvestors.com/podcast/

                  Comment


                  • #10
                    What are your thoughts on CrowdStreet and Fairway America?

                    Comment


                    • #11
                      https://www.youtube.com/watch?v=CEeqCbEFIJw

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                      • #12
                        I’m about 8 months into a deal through CrowdStreet. Cash return so far about 5% annualized. Estimated length of deal is 5-7 years. One property in the portfolio already bought and then sold for 150% of purchase price. They are still acquiring properties. Communication has been good thus far, but this will be the first year I’ll need to file taxes on the returns so we will see how the K-1 process goes.

                        Comment


                        • #13
                          I've made quite a few passive real estate investments over the past 4+ years now.

                          5 have gone full circle, about 10 are ongoing. Returns (as measured by IRR) have been anywhere from 2% to 52% on completed deals. With ongoing deals, some cannot be calculated (ground up builds, for example) until I've exited. Others can be measured by IRR if they update the net asset value (NAV).

                          I'm in both syndications and funds, mostly equity but have had a couple of debt deals go full circle and I'm in one debt fund now.

                          Details with a recent update of the numbers: https://www.physicianonfire.com/many...e-investments/

                          My suggestion would be to start small. You could have put $100 into Fundrise or something similar a year ago to get comfortable with the asset class, communication, etc....
                          I've made many real estate investments. These passive instruments have returned anywhere from 2% to 52% a year. A 2022 update on my real estate portfolio.

                          Comment


                          • #14
                            drmac15 , I've found that Private Investor Club, (https://www.privateinvestorclub.com/) to be very helpful in finding syndications and funds to invest in.
                            It does have a lot of information and due diligence on deals, so it requires reading and research but I find the deals and fees to be very good. Also, there some discounts or improved waterfalls negotiated with the sponsors.
                            The club is free, you can donate to it voluntarily. It's mostly aimed for those who are at least Accredited Investors. You do have to apply for membership and sign a non-disclosure agreement when you join.
                            I've only briefly looked through Crowdsteet, I think there's probably less fees with this club and probably better deals (I haven't looked at crowdstreet enough to know for sure).

                            Comment


                            • #15
                              The easiest way is to first decide on your minimum investment. If it is low, that eliminates a lot of the options. If it is high, you can afford to skip a lot of the less attractive options.

                              The fund vs individual syndication is also an easy way to narrow it down.
                              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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