Real Estate Syndications: Spark Rental

[Simone Montague-Jackson]

Hey everyone, 

I'm interested in RE syndications, but I'm quite cautious because I don't want to incur any scams. And I don't know how to start any on my own at the moment. However, I attended an RE meetup and learned about this company called Spark Rental (https://sparkrental.com/coinvesting/?utm_source=SparkRental+...). If anyone is currently investing with this company or know more about it, please comment below or PM me because I don't want to jump into anything that would cause me to lose money. 

Thanx in advance :) 

[Melanie P.]

 Brian, This is a discussion forum. If you're going to use it to generate leads for your "investing club" I'm going to put the dangers and risks close by so at least the small investor you're pursuing for these ventures knows there is more here than meets the eye. 

I agree with you there is no loophole. You seem to believe that using the words "investing club" makes what you're doing legitimate. It does not. These are not four friends investing together. You market the service across the Internet; nearly every time you post there's a reference to try to generate interest. You select every investment Spark creates. Your partner forms and controls the investor-LLC. You charge fees for these services. The investors in the LLC expect to earn a return from the efforts of you and the syndicator. You are acting as an Investment Advisor. The shares of the LLC you sell at your monthly meeting are unregistered securities. It's widespread practice in the Real Estate Syndications industry to compensate bundlers by selling them their shares at a discount to par. If you're not participating, as you say, OK, but I will keep looking into it until I'm satisfied that is not taking place. This happens every day, there's lots of marketing activity to say no to revenue, and oddly prior to anyone bringing it up you're screaming from the hilltops that Spark doesn't accept this money - well time will tell. If you are, together with the fact that you execute trades and maintain accounts for your customers you're a broker.

You market to the least sophisticated, smallest investors out there. If your investors had $50k to invest and were accredited, why would they need you? Small dollar, unaccredited investors with little real estate experience are wholly unsuitable for the investments you are selling. My math is correct. You are not licensed, at least in part, because the activity you're engaged in would be prohibited of any licensee.  Investors must remain in the club, paying dues for the life of their investment. You even have contractual language that allows you to withhold these fees from any remittances due the investor.

Not a single false word has been written about Spark. We do have a legitimate difference of opinion on the rules and regulations that govern Spark's activities. I will request the SEC give us their opinion and that should settle the matter. I recall you like chocolate.