Spark Rental Investing
Has anyone tried their syndication investment club? I`m hoping to find someone thats had some success utilizing this platform
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Hey, figured I'd chime in as the cofounder of SparkRental :-)
To clarify: We're not a fund of funds. We're not a sponsor or capital raiser, we don't get a cut of any of the money invested.
Instead, we charge a flat membership fee. If you think of an old school investment club where members get together every month to discuss and vet stock investments and then invest together, it's like that, but instead of stocks we focus on passive real estate investments.
We bring in different sponsors each month to vet together and review their current deal. Any members who want to invest can do so (minimum $5K), and we form a joint venture LLC as the singular investor (the limited partner) in that syndication deal. Collectively, we meet the minimum investment for the syndication.
You're right of course that we're at the mercy of sponsors for K1s. We encourage all members to file extensions for their personal tax returns, because we just don't know when each joint LLC will receive K1s. And then an accountant has to split the K1 into each individual members' K1s. Accounting costs are shared among LLC participants, which do slightly reduce take-home returns, but that's the price of going in on these deals together with small amounts per person.
Hope that makes sense, and feel free to message me any time with questions!