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.
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.
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.
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.
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!!
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:
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.
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.