Investing in privately owned commercial companies

Investing in privately owned commercial companies

Washington D.C., Washington D.C. · Member since 2016 · 9 posts · 1 vote

I have a medium sized amount of money in a Self Directed IRA. I want to be more aggressive with this money and put it in a small to medium sized privately owned commercial real estate company. Does anyone have any suggestions of company with a solid business plan and good people who have a good track record? Thanks.

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Real Estate Investor · Delafield, WI · Member since 2011 · 57 posts · 15 votes
9y

Why wouldn't you go buy your own property (like a apartment building, self storage or net leased deal) and "overpay" the best property manager in town to take care of it?

Of you could put your money into a deal with a syndicator. They should be able to get you a mid teens to high teens ROI...at least thats what I deliver to my investors.

Putting money with REITS in my opinion isn't exactly an "aggressive" move.  

There are better options in my opinion to juice returns.

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  • Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
    9y
    Look up ARCTrust. They've been a client for 30 years and they're doing a lot of great things. They're a REIT. There's also the DST option which sometimes offers greater returns but it's much less liquid.
  • Real Estate Investor · Delafield, WI · Member since 2011 · 57 posts · 15 votes
    9y

    Why wouldn't you go buy your own property (like a apartment building, self storage or net leased deal) and "overpay" the best property manager in town to take care of it?

    Of you could put your money into a deal with a syndicator. They should be able to get you a mid teens to high teens ROI...at least thats what I deliver to my investors.

    Putting money with REITS in my opinion isn't exactly an "aggressive" move.  

    There are better options in my opinion to juice returns.

  • Washington D.C., Washington D.C. · Member since 2016 · 9 posts · 1 vote
    9y

    Dan, I am looking for something like a syndicator. I am trying to find the right group to invest in. Do you have any suggestions?

  • Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    I agree with @Dan Genzel There are ways to get a much better ROI and have more control on your investments. If you don't want to be "hands on" involved, maybe find someone in your area who is already killing it but needs more capital to expand. Good luck!!

  • Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
    9y

    Gerard,

    Dan is correct, I believe you are looking at syndication firms that pool investor money (investor is a limited partner in the deal) and the syndicate group does all the work finding, acquiring, improving and managing the asset with the goal of earning attractive risk adjusted returns.  Most look to attract accredited investors so that is the main hurdle.  Significant advantages are commercial valuation models w/value add plays and scale, difficult for small players to enter this space w/o a lot of capital and experience on their own.

    There are many niche areas as Dan mentions.  Some of the more popular niches are large MF apartments, storage facilities and mobile home parks to name a few.  These niches mentioned have solid historical records of performance and good future prospects due to various demographic trends.  

    More than happy to educate on the large MF space.  There are several good players in the space and could hep you understand what things to look for if interested.  At a high level, we look for:

    1) Market - strong growth markets (pop, jobs > natl averages)

    2) Deal - value add; conservative underwriting

    3) Team - solid experience in different market conditions; track record of meeting / exceeding expectations.

  • Washington D.C., Washington D.C. · Member since 2016 · 9 posts · 1 vote
    9y

    All, Thanks for the advice. I am looking for different ways to diversify my investments. If you have any other insight or advice please post it on this thread or shoot me a message.

  • Real Estate Investor · Delafield, WI · Member since 2011 · 57 posts · 15 votes
    9y

    Gerard, it looks like you in DC and I don't know any syndicators there.  If you are open to other locations that get probably a much better return (the coasts are overheated) let me know.

  • Washington D.C., Washington D.C. · Member since 2016 · 9 posts · 1 vote
    9y

    Dan,

    I figured there wasn't much opportunity in the DC area. I'm open to just about any area in the United States. 

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