Passive investing opportunities for non-accredited?

22 Replies

Hi all,  

I've been working hard in the last few months to educate myself on all the different realms of real-estate and investing in general. It's pretty darn fascinating.  I've come to learn a few things about myself:

1. I don't want to be an involved landlord, nor do I have the desire to get really involved in rehabbing 

2. I prefer to deal in cash, but am open to moderate amounts of debt (i'm currently debt free.)  

3.  I would love to be making about 500.00 a month in passive income to pad our current income and free us up to pursue some big dreams (like building our own home on our own land.)   Anything beyond that would be great but not necessary.

Knowing all this about myself, I'm drawn to the more passive realms- like crowdfunding, syndications (especially mobile home park syndications), and especially trust deed investing.  HOwever, I am not accredited at this time.  It's always so disappointed to know I'm locked out of many of these opportunities.

Please give me some ideas on where I can invest passively without being accredited!  I will have a few windfalls in the next few years and am planning ahead.  Thank you!  BP has been a huge help so far. 

Hi Kristin,

Please feel free to reach out and we can chat a bit.

You can email me or message me.  

I'm happy to discuss ideas with you as well. PM me

Hi @Kristin Brancaleone -- Welcome to BiggerPockets.

It appears we're neighbors.  I'm right across the 5 freeway in Laguna Niguel. :)

If you are a "sophisticated" investor and make some contacts, you do not need to be accredited to participate in certain syndications.

Not sure how much you are looking to invest, but most syndications require a $50k or $100k min and most people who have that liquidity also tend to be accredited.

Congrats for thinking ahead and knowing enough to know what you don't want!

As an extreme DIY landlord, I don't blame ya for not wanting to be hands-on.  It doesn't always suck, but it certainly can.

I would probably lend locally on deals I can see with people that I know.  

Forget these low post vultures that want you to PM them.  For what?   No profession even mentioned. 

We're not all like that.

Welcome to BP @Kristin Brancaleone  !

investing in TD's could work for you.. I would say PM me but then @Steve Vaughan would jump on me LOL...

Originally posted by @Jay Hinrichs :

investing in TD's could work for you.. I would say PM me but then @Steve Vaughan would jump on me LOL...

 Good one, Jay. You definitely are suspect with your  'low post' count lol.

Have you ever once asked someone to PM you? Yeah, right. Same here buddy. Not once!

@Steve Vaughan   to be fair a few times but not to sell them something LOL.. just to add off line help if they think they need it

Creative financing is your #1 option getting started.

Use other people's money. Get the education and mentorship first, create a track record of success (with your own money because no one will want to lend to someone that has no proven success), and get working on that net wealth.

4 $250k houses and you're there. 

@Kristin Brancaleone , There are currently 3 national options that I know of for nonaccredited investors in real estate crowdfunding: Realtymogul, Fundrise, and Richuncles. The best one for you depends on a few things:

1) how much you have available to invest? The minimums for realtymogul are higher than Fundrise, which is higher than Richuncles.

2) what is your risk tolerance for the money? I'm assuming your risk tolerance is low since you will be counting on the cash flow to pay for other things, and it would hurt if you weren't able to. Is that right?

@Ian Ippolito   under what rule are those 3 crowdfunders allowed to let non accreds invest.?

I under stand one of the 506 models that caps at 1mil I think and you can have up to 35 non accreds.  but that would be too much work to raise so little money in one fund

What Jay suggested was what I was going to suggest.  TD= tax deed / tax lien buying can net decent income when the owner redeems and you get paid what ever your state's interest rate is:  often 15% to 20% which can be your $500 month and its passive.  Once in a while you'll end up with a house which you can wholesale off with not much effort given good deals are in such short supply.

Learn via googling:  how to invest in tax deeds -my state-  

Search for the tax deed BP forum.

@Jay Hinrichs , RealtyMogul and Fundrise are operating under the new revisions to regulation A (which some people are calling regulation A+). They can raise up to $50 million in one fund per year.

Richuncles is operating under the same SEC rules as the old school public nonlisted REITs. However they have substantially reduced the fees, which were customarily outrageous. I believe they can raise at least $1 billion, or some other astronomical sum.

@Jay Hinrichs , The CEO of richuncles said that they are operating under s-11. Here's a link on it: http://www.investopedia.com/terms/s/sec-form-s-11.asp

@Ian Ippolito   thanks Ian..... reg A is the big boy PPM I take it.

Reg. A+ funds will continue to pop up.  We have several clients that are planning to operate with this exemption.  We'll probably start a fund under this exemption in a few years too.  

@Jay Hinrichs The exemption you're referencing above isn't a Rule 506 offering.  What you're referring to has to be administered by a licensed legal portal under Title III of The JOBS Act.  This exemption is really more suitable for venture projects and doesn't work very well for real estate given how expensive it is.  RealStarter will be a licensed Title III portal at some point in 2017, but we're too busy with other things right now to build the software to complete our legal.  

If you have enough money doing a whole hard money loan is a decent option.  I am sure you can find some payment dependent note options too if you look around.  Be careful with the legal on anything you invest in because these types of opportunities are notorious for having a poor securities structure.  

You mentioned you were particularly interested in mobile home park funds @Kristin Brancaleone  

It is not hard to see why as they are an excellent investment.  There is a way that you can be involved with these groups without being an accredited investor.  If you find an excellent off market deal most of the fund managers like @Jefferson Lilly and @Account Closed will purchase the park with you as a partner, pay you a referral fee or purchase the deal from you if you have it under contract.  This is a great way to get involved with high quality mobile home operators without being an accredited investor.  There are most likely many options when it comes to your level of involvement in the running of the park post closing.  You do have to do your homework.  They all have their criteria and you need to learn it well and learn to evaluate parks like they would.  If you are truly interested and are willing to put in the time and energy I suggest you contact these guys. They have money coming into their funds and they need to get it working.  It could be a great partnership.

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One of the better threads going right now, heavy hitters galore dropping excellent amount of knowledge and legit research materials... Thank you

@Kristin Brancaleone I know this is an old thread but if you're still looking, I've something that fits what you're looking for. Message me if you're interested.

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