I've never lost money. I won't do a deal where my investors don't make at least 7-9% COC from the beginning.
I'll be shocked if someone admits to losing investor money on this public forum. Many have, bad operators and uneducated syndicators have and do. The next widespread correction will show this very clearly.
@Andrey Y. sure. Always happy to share my mistakes and what I have learned. I certainly made quite a few early in my career!
I have described everything you requested at great length on numerous podcasts including Rod Khleif, Joe Fairless, Jake and Gino, Michael Blank to name a few. They should be pretty easy to google my episode. Hope you enjoy the listen and it saves you some time and $$!
It all boils down to your operator. If the operator syndicates deals that are riskier in nature, the chances of losing money naturally will go up.
Having said that, it’s important to select syndicators that match your investment style. If you are a conservative investor, selecting a conservative syndicator is the way to go. If you are willing to accept bigger risks — leading to bigger rewards if the investments work out — then you would pick a syndicator that matches that investment style.
Our firm is on the conservative end of the spectrum, and therefore hasn’t lost money on deals to date.
@Andrey Y. sure. Always happy to share my mistakes and what I have learned. I certainly made quite a few early in my career!
I have described everything you requested at great length on numerous podcasts including Rod Khleif, Joe Fairless, Jake and Gino, Michael Blank to name a few. They should be pretty easy to google my episode. Hope you enjoy the listen and it saves you some time and $$!
Thanks. Probably won't go on a goose chase to find out one piece of information. If you could recommend the single most up-to-date podcast that answers what I asked, that would be even better!
It all boils down to your operator. If the operator syndicates deals that are riskier in nature, the chances of losing money naturally will go up.
Having said that, it’s important to select syndicators that match your investment style. If you are a conservative investor, selecting a conservative syndicator is the way to go. If you are willing to accept bigger risks — leading to bigger rewards if the investments work out — then you would pick a syndicator that matches that investment style.
Our firm is on the conservative end of the spectrum, and therefore hasn’t lost money on deals to date.
Good luck, and let me know if I can help!
That may be true, however to date I have yet to meet a syndicator that hasn't told me that they are conservative ;)
That may be true, but you'll have to take a look at the kinds of projects they have syndicated in the past and judge for yourself whether they are conservative or not.
In my case, I earn enough money in other endeavors to not have to rely on income from syndications. This gives me the freedom to pass up on marginal deals or deals that don't quite fit my parameters. And as an example of that, starting in 2016, we've kept our powder dry.
The way I invest in commercial multifamily doesn't work for the most part here at the top of the market.
Here's an example. My opinion is that if you're willing to take on projects like multifamily developments and redevelopments, then there may be options out there for you...But they won't be risk-free and they may even lose money.
Developments and redevelopments don't meet my personal definition of 'conservative', but it may meet yours -- and that's why you have to spend quite a bit of time matching your personal definitions and investment style with the business models of any syndicators you decide to work with...
That may be true, but you'll have to take a look at the kinds of projects they have syndicated in the past and judge for yourself whether they are conservative or not.
In my case, I earn enough money in other endeavors to not have to rely on income from syndications. This gives me the freedom to pass up on marginal deals or deals that don't quite fit my parameters. And as an example of that, starting in 2016, we've kept our powder dry.
The way I invest in commercial multifamily doesn't work for the most part here at the top of the market.
Here's an example. My opinion is that if you're willing to take on projects like multifamily developments and redevelopments, then there may be options out there for you...But they won't be risk-free and they may even lose money.
Developments and redevelopments don't meet my personal definition of 'conservative', but it may meet yours -- and that's why you have to spend quite a bit of time matching your personal definitions and investment style with the business models of any syndicators you decide to work with...
Well put. I'm trying to take a broadly diversified approach. Heavy value add vs. cash flow, different asset classes, geographically, etc. Lately I wanted to get into assisted living facilities, but haven't found a sponsor for this. If someone could provide some suggestions, that would be awesome!