Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)
In no particular order:
Rise48 - Arizona and Texas multifamily;
Think Multifamily - Texas multifamily;
Open Door Capital - Texas multifamily;
Lonestar Capital - Texas multifamily;
Camino Verde Group - Vegas, Texas and South Carolina multifamily;
Disrupt Equity - Texas multifamily;
Garages of America - Texas storage;
Ashcroft Capital - multiple states.
Others I have heard of but not invested in:
BAM - Indy;
Grocapitus - Arizona and Texas;
Elevate CIG - currently has a deal in South Dakota;
Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;
Sunrise Capital - parking lots and multifamily - storage too?
Wellings Capital - fund;
ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.
White Plains, NY · Member since 2017 · 3 posts · 2 votes
3y
great list. Thanks for posting.
I’ve only invested with Sunrise in their Fund3. They are investing in multiple states so I like the geographical diversity. Fund 3 is closing this month so too soon for me to say anything yet. They are pretty responsive and accommodating with questions and requests so that has been a good sign.
I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)
In no particular order:
Rise48 - Arizona and Texas multifamily;
Think Multifamily - Texas multifamily;
Open Door Capital - Texas multifamily;
Lonestar Capital - Texas multifamily;
Camino Verde Group - Vegas, Texas and South Carolina multifamily;
Disrupt Equity - Texas multifamily;
Garages of America - Texas storage;
Ashcroft Capital - multiple states.
Others I have heard of but not invested in:
BAM - Indy;
Grocapitus - Arizona and Texas;
Elevate CIG - currently has a deal in South Dakota;
Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;
Sunrise Capital - parking lots and multifamily - storage too?
Wellings Capital - fund;
ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.
Hi John. Just to make sure we are talking about the same thing, you mean real estate investment funds, which are limited partners + general partners, correct? Not syndications, which are simply groups of investors pooling their money together?
I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)
In no particular order:
Rise48 - Arizona and Texas multifamily;
Think Multifamily - Texas multifamily;
Open Door Capital - Texas multifamily;
Lonestar Capital - Texas multifamily;
Camino Verde Group - Vegas, Texas and South Carolina multifamily;
Disrupt Equity - Texas multifamily;
Garages of America - Texas storage;
Ashcroft Capital - multiple states.
Others I have heard of but not invested in:
BAM - Indy;
Grocapitus - Arizona and Texas;
Elevate CIG - currently has a deal in South Dakota;
Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;
Sunrise Capital - parking lots and multifamily - storage too?
Wellings Capital - fund;
ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.
Hi John. Just to make sure we are talking about the same thing, you mean real estate investment funds, which are limited partners + general partners, correct? Not syndications, which are simply groups of investors pooling their money together?
I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)
In no particular order:
Rise48 - Arizona and Texas multifamily;
Think Multifamily - Texas multifamily;
Open Door Capital - Texas multifamily;
Lonestar Capital - Texas multifamily;
Camino Verde Group - Vegas, Texas and South Carolina multifamily;
Disrupt Equity - Texas multifamily;
Garages of America - Texas storage;
Ashcroft Capital - multiple states.
Others I have heard of but not invested in:
BAM - Indy;
Grocapitus - Arizona and Texas;
Elevate CIG - currently has a deal in South Dakota;
Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;
Sunrise Capital - parking lots and multifamily - storage too?
Wellings Capital - fund;
ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.
Hi John. Just to make sure we are talking about the same thing, you mean real estate investment funds, which are limited partners + general partners, correct? Not syndications, which are simply groups of investors pooling their money together?
You say tomato I say tomato. Thank you for your contribution to the list of whatever you want to call it! :) I'll check them out.
John, full disclosure- I am a general partner with Capital Giants, so I'm biased. However, we carry a lot of experience and have dialed in a low risk high return, quick yield strategy.
How you get yourself feel comfortable with invest in Syndications? I am struggling a little with it since I am not seeing the real documents used for underwriting and etc. So all the document presented are put together with a team I never worked with before. Granted they all have podcast...
There was once I was really close to invest in one of the Brandon Turner's deal last year, but I stopped. If you have experience with his syndication projects, do you mind share how they are doing?
Investor · Los Angeles, CA · Member since 2020 · 102 posts · 94 votes
3y
@Jenny Zhang: Most sponsors would be willing to share their underwrite or answer questions. If they do not, that would be a reason to pause and walk away. To get comfortable with the sponsor and team, if you are not able to connect in person, connecting online over Zoom is a good initial step. Then connecting to their newsletter and social media posts is a good way to stay in touch and get to know them over a period of time. Passive investor forums (like the two I mentioned above) are a good way to get feedback from other passive investors. I hope that helps.
@Jenny Zhang: Most sponsors would be willing to share their underwrite or answer questions. If they do not, that would be a reason to pause and walk away. To get comfortable with the sponsor and team, if you are not able to connect in person, connecting online over Zoom is a good initial step. Then connecting to their newsletter and social media posts is a good way to stay in touch and get to know them over a period of time. Passive investor forums (like the two I mentioned above) are a good way to get feedback from other passive investors. I hope that helps.
Thank you, Vessi. I will check out the forums. I think it is mind set shift that would take a good effort to overcome. Nowadays, trust can be built based on social media presence. I am the type still building trust from experiences working with people together hands on. This is a big change for me personally. haha...
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
I recommend joining groups like LFI mentioned above as funds that were doing well last year or even six months ago should consistently being reviewed. Depending on the asset class and financing structure, we are hearing the number of capital calls are growing at a very high rate.
Do your own due diligence to make sure you understand the offering, your interest and the sponsors experience. Never put more than 10% of your portfolio in more than one syndication.
How you get yourself feel comfortable with invest in Syndications? I am struggling a little with it since I am not seeing the real documents used for underwriting and etc. So all the document presented are put together with a team I never worked with before. Granted they all have podcast...
There was once I was really close to invest in one of the Brandon Turner's deal last year, but I stopped. If you have experience with his syndication projects, do you mind share how they are doing?
Really appreciated.
I have invested in a few of Open Door Capital's investments (Brandon Turner) and so far so good. It's pretty early though. Need to get through a recession to really know! My feeling is you do all the due diligence you can on the syndicator as a starting point but I am not looking for a job. You do what you can on the deals but my goal is to utilize someone else's knowledge and work. I am paying them a fee. I would like to avoid a Bernie Madoff type situation but beyond that I diversify and hope that mailbox money continues! :) This works for me but perhaps not everybody.
How you get yourself feel comfortable with invest in Syndications? I am struggling a little with it since I am not seeing the real documents used for underwriting and etc. So all the document presented are put together with a team I never worked with before. Granted they all have podcast...
There was once I was really close to invest in one of the Brandon Turner's deal last year, but I stopped. If you have experience with his syndication projects, do you mind share how they are doing?
Really appreciated.
I have invested in a few of Open Door Capital's investments (Brandon Turner) and so far so good. It's pretty early though. Need to get through a recession to really know! My feeling is you do all the due diligence you can on the syndicator as a starting point but I am not looking for a job. You do what you can on the deals but my goal is to utilize someone else's knowledge and work. I am paying them a fee. I would like to avoid a Bernie Madoff type situation but beyond that I diversify and hope that mailbox money continues! :) This works for me but perhaps not everybody.
Thank you John. My trouble is that I am very hands on and like to due diligence myself. So I concern is how can you know the document/underwriting presented to you are all truth. This is not me not trusting people. The hurdle is how to meaningfully exam the facts behind those document in order to trust it. I hope I expressed it clearly.
How you get yourself feel comfortable with invest in Syndications? I am struggling a little with it since I am not seeing the real documents used for underwriting and etc. So all the document presented are put together with a team I never worked with before. Granted they all have podcast...
There was once I was really close to invest in one of the Brandon Turner's deal last year, but I stopped. If you have experience with his syndication projects, do you mind share how they are doing?
Really appreciated.
I have invested in a few of Open Door Capital's investments (Brandon Turner) and so far so good. It's pretty early though. Need to get through a recession to really know! My feeling is you do all the due diligence you can on the syndicator as a starting point but I am not looking for a job. You do what you can on the deals but my goal is to utilize someone else's knowledge and work. I am paying them a fee. I would like to avoid a Bernie Madoff type situation but beyond that I diversify and hope that mailbox money continues! :) This works for me but perhaps not everybody.
Thank you John. My trouble is that I am very hands on and like to due diligence myself. So I concern is how can you know the document/underwriting presented to you are all truth. This is not me not trusting people. The hurdle is how to meaningfully exam the facts behind those document in order to trust it. I hope I expressed it clearly.
I understand your question. I do not concern myself with that. Syndications just might not be right for you. I want to do as little as possible with my investments. I enjoy other stuff more. There is inherent risk in this mentality which works ok for me. I diversify syndicators, geographic locations, types of properties, cash flow v growth, etc. For me this works.
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
3y
I have been in 3 with Praxis Capital and have been very happy with them.
I have 2 currently with Fortress Federation and they are both doing "ok". They are both in FL and the current political climate and the insurance issues have made them not perform as well as expected.
Austin, TX · Member since 2015 · 5 posts · 3 votes
3y
@Jenny Zhang
You should look into Ian Ippolito’s Private Investor Club (privateinvestorclub.com). If you want to learn how to do deep dive due diligence as well as access world class sponsors, check it out.
You should look into Ian Ippolito’s Private Investor Club (privateinvestorclub.com). If you want to learn how to do deep dive due diligence as well as access world class sponsors, check it out.
I have been in 3 with Praxis Capital and have been very happy with them.
I have 2 currently with Fortress Federation and they are both doing "ok". They are both in FL and the current political climate and the insurance issues have made them not perform as well as expected.
How you get yourself feel comfortable with invest in Syndications? I am struggling a little with it since I am not seeing the real documents used for underwriting and etc. So all the document presented are put together with a team I never worked with before. Granted they all have podcast...
There was once I was really close to invest in one of the Brandon Turner's deal last year, but I stopped. If you have experience with his syndication projects, do you mind share how they are doing?
Really appreciated.
I have invested in a few of Open Door Capital's investments (Brandon Turner) and so far so good. It's pretty early though. Need to get through a recession to really know! My feeling is you do all the due diligence you can on the syndicator as a starting point but I am not looking for a job. You do what you can on the deals but my goal is to utilize someone else's knowledge and work. I am paying them a fee. I would like to avoid a Bernie Madoff type situation but beyond that I diversify and hope that mailbox money continues! :) This works for me but perhaps not everybody.
Thank you John. My trouble is that I am very hands on and like to due diligence myself. So I concern is how can you know the document/underwriting presented to you are all truth. This is not me not trusting people. The hurdle is how to meaningfully exam the facts behind those document in order to trust it. I hope I expressed it clearly.
I understand your question. I do not concern myself with that. Syndications just might not be right for you. I want to do as little as possible with my investments. I enjoy other stuff more. There is inherent risk in this mentality which works ok for me. I diversify syndicators, geographic locations, types of properties, cash flow v growth, etc. For me this works.
Investor · Rockland County, NY · Member since 2018 · 46 posts · 55 votes
3y
I had a good experience with Kyle Mitchell Vertical street Ventures in AZ and Alex May of Regency Capital TX.
@Jenny Zhang investing in syndications is not for everyone, for some it's very hard giving up control and trusting someone else with a large chunk of $, you may be better investing on your own or joint venture where you can be more hands on.
I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)
In no particular order:
Rise48 - Arizona and Texas multifamily;
Think Multifamily - Texas multifamily;
Open Door Capital - Texas multifamily;
Lonestar Capital - Texas multifamily;
Camino Verde Group - Vegas, Texas and South Carolina multifamily;
Disrupt Equity - Texas multifamily;
Garages of America - Texas storage;
Ashcroft Capital - multiple states.
Others I have heard of but not invested in:
BAM - Indy;
Grocapitus - Arizona and Texas;
Elevate CIG - currently has a deal in South Dakota;
Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;
Sunrise Capital - parking lots and multifamily - storage too?
Wellings Capital - fund;
ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.
I have invested with several syndicators over the past 7 years. Curious if anybody has any others to recommend as I like the idea of being as diversified as possible as I would like to avoid a Bernie Madoff type situation ruining my retirement. :)
In no particular order:
Rise48 - Arizona and Texas multifamily;
Think Multifamily - Texas multifamily;
Open Door Capital - Texas multifamily;
Lonestar Capital - Texas multifamily;
Camino Verde Group - Vegas, Texas and South Carolina multifamily;
Disrupt Equity - Texas multifamily;
Garages of America - Texas storage;
Ashcroft Capital - multiple states.
Others I have heard of but not invested in:
BAM - Indy;
Grocapitus - Arizona and Texas;
Elevate CIG - currently has a deal in South Dakota;
Praxis Capital - seems to do a lot in Georgia but currently just has a fund open;
Sunrise Capital - parking lots and multifamily - storage too?
Wellings Capital - fund;
ANY OTHERS you recommend? Any input on the above? I'd love to get into some other sunbelt states besides Texas as I seem to be Texas heavy right now.
There is a divide between two types of syndications. One is the “fund” that invests in multiple properties. Usually, only some, if any of these properties have been chosen by the time investments are made, so you’re investing without complete knowledge as to the specific property. If no properties have Ben identified it’s known as a blind pool. The second, and more common syndication is where ownership, and or debt of a specific property is identified, and essentially the investors are what we used to know as “limited partners” (now there actually almost always “non managing members” of an LLC. An operating agreement is used giving the investors limited rights, and the manager” (sponsor) almost total decision making control (as long as the decision making doesn’t violate securities regulations.
Btw, LOTS of GREAT information in the responses to this post! It’s hard to get “comfortable” with giving someone else control over your money, ESPECIALLY in a situation with the absence of liquidity. Here are the rules I suggest you consider 1- A THOROUGH background check on the sponsor. Google may not be enough; for a seriously large investment I consider hiring an expert to dig deep. 2 - Speak with current and former investors - if sponsor won’t provide names move on 3 - start with a SMALL investment, you don’t need to put all your money to work at once 4 -Study the sponsors track record. For conservative investors consider eliminated any sponsors who have not been around the 2008-2012 real estate depression. 5- only invest in offerings utilizing Reg D or Reg A. Eliminate any offerings relying on the general exemption for securities registration. 6- consider hiring a SECURITIES” attorney to review the PPM and Operating Agreement. Mostly to see if there’s anything “unusual” you need to be aware of.
I had a good experience with Kyle Mitchell Vertical street Ventures in AZ and Alex May of Regency Capital TX.
@Jenny Zhang investing in syndications is not for everyone, for some it's very hard giving up control and trusting someone else with a large chunk of $, you may be better investing on your own or joint venture where you can be more hands on.
Hi there,
I totally get it. It is not giving up control part. It is to giving up control for a good reason besides just follow the guru or what is being presented. I am a number person and a CPA. I want substantiation. haha... I just prefer trust based on proof. So many syndicator's track records are all based on the crazy booming years, which says less about their expertise, that does give me an idea -- I should start to look into some syndicators with longer history ( weather through the downturns ). That might be a good starting point. Thanks!!
