Does this Exist? If not, why doesn't it!

Question

Does anyone know of any online funds such as or similar to Fundrise, RealtyMogul, Ground Floor, that use the BRRR method to build equity, create cash flow, while letting you cash out and get your money back out while still keeping the cash flow?

I love the BRRR strategy but need to do it completely location independently as I spend 11 months of the year living out of the US.

I'm happy to put $10-$50k into each deal but would rather do it through something with an online portal rather than find individuals to partner with as even though I'm sure some syndicators do this already, I'd rather go through an online platform with a centralized dashboard, ease of info, and others to invest alongside with transparently.

The benefits of online funds would be ease of communication, deal flow, lower minimums, easier to vet with more eyeballs, more diversification, etc.

Ideal Investment:

I invest $10k-$50k into a each deal.
The property is Bought, Renovated, Rented out then Refinanced.
I get back all or most of my $10k-$50k.
We keep the monthly cash flow.
We retain the equity, and it slowly build.
I invest the $10k-$50k into another deal and repeat.
All if it is done online.

Does this exist? If not, why doesn't it?

Jay Hinrichs · Answer

Yup it exists that's what have the sponsors on these crowd fund sites do..

John Corey · Answer

Information noted. We can compare notes down the line.

As you are now living in Europe and Asia, you might be interested in the crowdfunding model used in the UK. The FCA, think SEC for the UK, took a different route. You can invest in deals for £100 or less per investment. And the hold period is what ever is set out by the sponsor. The platforms act as marketplaces rather than being in control of the deals.

Brent Shields · Answer

From what I have learned about the syndications that I have invested in.

I don't think you are going to find the same deals with online platforms as you will with individual syndicators.

To make it simple lets just look at one thing, mailing out the K1 statements at the end of the year.

If a syndicator gets 400 investors to invest $50k each that will cost them about $10k to mail out their statements using FedEx.

An online platform will have 4000 investors investing $5k each so their K1 mailing will cost about $100k.

Everything else will work at about the same ratio.

The other problems is that syndicators frequently charge just enough fees to keep the lights on during the project, and make the majority of their money on the sale of the property. With a structure like that it's highly unlikely the operator will want to continue to do all the work and give the investors all the money for an extended period of time.

But if you find one let me know, I might be interested in investing in it.

Johnny Chen · Answer

Hey John, it would probably be good to go through all of them with a fresh pair of eyes as I might have missed something. But so far sites like FundRise definitely cash you out after 5-6 years instead of letting you stay in for cash flow. But looking again at sites like GroundFloor, I didn't see any BRRR type deals there, but decided to email them to ask just in case. Good news, they do offer them, but only sometimes.This is what they said:"Hi there - thanks for your question. We do offer BRRR products on a limited scale - for the moment, we take these kinds of projects on a case by case basis. The next time one comes available for funding, it will be separated out from our regular LRO offerings under a BRRR Loans category, so you will be able to clearly see which ones they are." So good news, they exist on some crowdfunding online sites. We'll just have to keep looking. Let me know if you hear from any others that potentially do it and i'll do the same.

John Corey · Answer

I do not know of site. Yet. I am looking into various alternatives.

So I do not repeat the analysis you have already figured out, what sites are you referring to where the sponsors will buy out the passive investors 100%? I can take them off the list search list while I look for alternatives.

Johnny Chen · Answer

I'm still looking. It seems all sponsonsors on crowdfunding sites return 100% of your investment, but keep the BRRR'd property for themselves.Any idea where I can invest in a BRRR online and keep the equity and cashflow after 90% is returned?

Jay Hinrichs · Answer

just keep looking many of the syndicators are looking to reposition and refi in shorter than 5 to 7 years..

Johnny Chen · Answer

@Jay Hinrichs can you point me to an example? All the ones I've seen cash out in 5-7 years by selling the property. So get our money back, but it's in 5-7 years and not 1-2, and also we lose that property's cash flow and appreciation.

Does this Exist? If not, why doesn't it!

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