I put 2 million into 20 crowd fund deals. Posting performance:

166 Replies

Continue to follow BP forums where syndicators hang out.  There are many good ones with solid track records that do several deals per year. Many have reasonably low min say $50k. You get direct access do a passive investment, get much closer to the leads and can gain better knowledge on their business models, track records, etc. Once in, a relationship is developed and you will receive preference to get in on next deal. I just raised $1.5m for a large apt deal. Believe me, sponsors want to deal direct w a loyal client base. Returns should be better w/o the platform costs. Crowdfunding has a place but believe direct is a good strategy to pursue. Many experienced operators w solid client bases don't need to crowd fund and can pass on more gains to investor.

Thank you David... you definitely have me interested in trying that. I think I would have to learn the diligence methods/tools/etc a bit from some investors that are doing direct hard money deals.

Well..I think I will be asking iFunding for a refund on Monday. They have not communicated well and have been unresponsive to my email. I know another investor that called them about the same issue and they did not leave him with a lot of confidence. 

So far my impressions is most positive about PoL and RS.

That is very generous of you to share this information Mathew.  Anyone interested in crowd funding should be interested to see how the wider market does and you are in a great position to be able to do that research.  It's a huge contribution and I will follow your results with anticipation.

I keep hearing good things about PoL so that is becoming a consistent meme for me and your portfolio reflects that as well.

Originally posted by @Matthew R. :

Update:

1) Added April receipts

2) Fixed several math errors (apologies...) If I'm doing math close to correct, the YTD, annualized return is over 300%. Correct me if I'm wrong.

3) iFunding: Im reasonably happy with all my investments (including the iFunding deal parameters), but I am unsure what is going on with my iFunding investment as they are not as communicative as the other companies. There is no substantive failure here... I just have received no communication. 

iFunding has been busy lately.   http://www.crowdfundinsider.com/2016/01/80812-tough-month-ifunding-hit-with-second-lawsuit/

Well crap. 

iFunding may be my first (public) failure in on biggerpockets. We will see. I will be calling tomorrow asking for an immediate refund. 

That is the downside of sharing all my performance... might have some embarrassing moments. :)

OK... iFunding called today. They were professional and advised that they would refund money and hold my place should i decide to re-invest. The deal was delayed due to a bank pulling out of the deal but they are working to secure another. 

So, feeling much better about them. I do think that they failed to communicate well as no status was provided for quite some time... but I think they are rectifying this. 

Matt

Originally posted by @Matthew R. :

Update:

1) Added April receipts

2) Fixed several math errors (apologies...) If I'm doing math close to correct, the YTD, annualized return is over 300%. Correct me if I'm wrong.

3) iFunding: Im reasonably happy with all my investments (including the iFunding deal parameters), but I am unsure what is going on with my iFunding investment as they are not as communicative as the other companies. There is no substantive failure here... I just have received no communication. 

Sorry, I don't understand the >$1.5m you have in "oth" (= other?). It seems to read that you've been paid back in full (bridging loans?), but you have annualized that to indicate you will continue to get all your money back again TWICE more by the end of the year!? Is that right (or, wrong)?

I would be inclined to recommend that you NOT continue with iFunding (once you cash out)...

Originally posted by @Matthew R. :

Here are the 20 deals I recently funded in a google spreadsheet. I will update performance monthly. I just have to figure out a few more formulas and I will add performance metrics:

https://docs.google.com/spreadsheets/d/1dHzmfM1l-BWSaH-yaLP1TL70lSvB8StSmeesQOBB4MU/edit?usp=sharing

 @Matthew R. - great set of investments. I will definitely follow your progress. Cheers.

Can I use your numbers in a presentation @Matthew R. ?  I have a partner that is starting a RECF, and I'm going to run a Real Estate Brokerage under its umbrella for acquisitions and resell.  As well as overseeing the project managers of our rehabs.

We are presenting to a venture capital firm and need real numbers.  You are the first investor spreadsheet I've seen.  

Crowdfunding is going to revolutionize how the world invests in RE.  Will create a new asset class of investors, new Real Estate Brokerages.  

Ride the wave.

Updated income for May... Experienced first payment default. PoL team seems to be managing it well and I suspect they will resolve. 

 - John... sure, you are welcome to use it. 

Originally posted by @Avi M. :

Thanks for sharing your spreadsheet and starting this discussion, Matthew!

Always interested in seeing how others track their investments.

I just started tracking my investments and created an example Google spreadsheet similar to what I use.

https://docs.google.com/spreadsheets/d/1X0f16KOXPc...

Few bullet points of my own:

  • I like to split investments per platform.  Each platform gets their own worksheet (tab) within the doc.
  • I wanted to get XIRR calculations rather than just a simple ROI. The problem with this is that in the early stages of an investment, you won't have enough data for an XIRR calculation. I got around this by testing the XIRR for errors and running an ROI calc when it errors out. It tells you which calculation it uses. If you supply enough data for an XIRR, it'll switch to use XIRR.
  • I don't like the fact that in the early stages of an investment, the ROI or XIRR spits out a high negative value. This hurts both sum and average. However technically valid those numbers are, it doesn't give a great sense of how the platforms compare to each other. It would be pretty trivial to add a "Completed" column and only have tallies target these columns. Maybe that would help?
  • The data in the spreadsheet is fake.  It's more to display the various states of an investment than anything else.  A completed debt deal, an equity deal that completed earlier than expected and two ongoing equity deals in various stages. 
  • Current limitation is five investments per platform.  You can easily add more, but it won't be as pretty.  :)
  • I locked the spreadsheet from editing since it's pretty easy to destroy the formulas.  Feel free to make a copy and test out functionality in your own copy.

Hope this helps someone and encourages more discussion!

Avi

 Avi, those are some complex Excel commands on your spreadsheet. Any tips for me to get a basic understanding of Excel in light of those real estate calculations (short of getting an MBA)?

@Matthew R. - Let me know what happens with the three property. If I'm looking at the right one, it has a very high ARV (47%) and PL gave them all "Low" in the risk metric department.

Updated over 5 years ago

By "high", I mean "good"

Other is the Bridge loans. I loan higher dollar amounts like a million where people need short term money, and they offer 1.5 or 2 points for a week or so. They obviously annualize very high... (2% x 52 weeks = 100+%)

Updated over 5 years ago

OK... I made it more clear

@Brent Coombs

Thank you for making that clear. I figured it out. I was using "total returned" instead of just interest returned. Since both bridge loans already returned all principal, it was included and threw the calc way off.  It had no effect on the other deals as none of them had principal returned yet. 

Sorry about that. I'm not very good at proofing my own work...  hopefully its right now.