Pls help - need advisor to evaluate my real estate investments

9 Replies

I've been interviewing new CFPs and other investment advisers and they only want to create for me a portfolio of stocks, bonds, retirement cash, and bank accounts to produce a return of 6% or more.  I can do that myself.

Can you recommend a source that will research real estate investment opportunities for me?

I'm not looking at REITs.  I'm considering being one of several / many investors in large, multi-unit residential and commercial properties managed by others on site (not properties using property management companies.)  

And I'd like to invest in some commercial bridge loans.

I have other things going and don't want to learn how to do this research myself.

Can you recommend someone who will do the research / vetting on these kinds of deals?Is there someone / a firm you have used successfully?

Thanks for your help!

@Olivia C. , it sounds like you're really looking for a RE investing group to place your investment capital. I got the part where you say you're not interested in a REIT, though I'm clear on your reasons. Would a crowdfunding platform appeal to you?

You might look into commercial real estate syndications, but to be fair most of them DO use professional property management. I personally would not want to buy into a syndication where the manager is "playing" PM as well. I can see no downside to having a professional PM.

As I reread your post I get the sense that you want to find a small team of partners where your role in this team would be to be the money person. Is it accurate to say you'd be more comfortable if you can keep a more personal touch with the investment and all the players.

As much as I would like to recommend someone for you to talk to directly, that is not allow in an open forum. Send me a PM. Let me know if I have a solid read on your needs. If not, set me straight and I'll see if I help find what your looking for.

Happy holidays!

Olivia,
I agree with Tom.
For me, it started when I began asking my investment advisor about fees; his fee the funds fees, the admin fee, the 401k fee, etc. he could not provide answers to all the fees.
I quickly decided to invest into things I know.

Since my money was 'qualified' retirement money, I needed a self directed ira. This allows me to invest in other companies, real estate, and many other things. I began by lending to people who were developing or rehabbing. Since then I have moved into partnering with other investors for commercial properties. My advice is to stay away from the larger groups, ticks, or funds with more than a handful of people. My other advice is to invest locally so that you can see and touch the investment. Ask a lot of questions, your partners will present themselves. Look at people's track records and talk to their previous investors. Finally, having read all you can, after speaking to as many people that you can, and after fully knowing all the details of both the investments and the investors, then have confidence that you are stepping into higher responsibilities and higher returns. Chances are you will do more than you thought you could ever do . Good luck.

If you're really looking to just place the capital and have nothing to do with the decisions or operations, you're really describing more of a RE hedge fund or other professionally run fund that targets a certain geography and strategy.

I know of one local to me - minimums are in the low $100k's range with minimum 1y commit and bonus payouts for larger amounts and longer commits. Alternately, there are a number of regional funds advertised on sites like iFunding.com and others.

In all these cases, you'll need to be accredited.

If you're looking for a CFP who will get you into this so you don't have to think about it, expect steep fees and start looking for those serving high net worth folks or calling themselves "wealth managers". Depending on the strategy at play, they may also have to be brokers as well.

Good luck.

Olivia,

Most investment professionals, brokers, advisors, and even CFP's are paid only on commissions and fees generated from managing a portfolio of securities. This is why many forms of real-estate are neglected. If you don't want to manage any aspect of investing in real estate directly you will incur some sort of management fees. The simplest and most liquid way world be to invest in a real estate mutual fund. There are many that will invest in different types of REITS and Debt instruments. You could also invest in a public REITS directly or even a private REIT. There are several private or non traded REITS that raise money, invest in a specific type of real estate or strategy, hold for a few year then liquidate when the time is right. A typical life cycle might be 5- 7 years from start to finish. These are usually not liquid. Private or non traded REITS are offered through licenses investment advisors and many CFPs

Adam

Hi @Olivia C.,
I hear exactly where you're coming from. Traditional CFP's are almost completely uneducated and unaware of anything outside the stock and bond markets. I've had to fire several, before deciding that the only way forward was to take control myself.

Are you an accredited investor? If so, I belong to a (free) private investor group that communicates over the Internet. They discuss deals, help each other perform due diligence, give opinions, etc. The best part is that you know none of them have a financial interest in leading you astray, and many of them have quite a bit of experience. If you are an accredited investor and are interested, message me privately with your email address and I'll forward your info to the group leader and see if there is an open slot.

Hi, All
Thanks for responding to my post, whether in this thread or via PM.

Tom and Bob - thank you for your thoughtful posts.

I now realize I posted about two very different situations: local investing and commercial bridge loan investing.

From what you both are saying, I should do my own research locally for investing in large, multi-unit properties. Will do.

I've found some construction bridge loan opportunities in other states that I need someone to do due diligence on Terrific websites can be built for a song and I just don't know how to vet the owners. I have lots of my plate with long term projects and would like to hand off this research on short-term bridge loan investments to others.

CFPs, CFCs (Chartered Financial Consultants), Private Bankers, and Wealth Managers don't seem to be interested in doing this type of due diligence. They just want to put me into stocks, bonds, & accounts. I can do this kind of "formula work" (as I've dubbed it) myself.

Does this kind of researcher exist for accredited investors? Any ideas about how to find one? I'm near Seattle if this kind of resource is available at the local level.

Is there a professional group of real estate investment brokers? Do they have a national website for members?

Justin - the kind of fund you describe could fit well. (I have the qualifications for being accredited.) How do I find something like what you describe? Local REI groups?

I welcome and am grateful for PMs and colleague requests about this.

Many thanks! Olivia

@Olivia C.  I am in agreement with @Tom Mole & @Bob Smith

Also, you NEED to know how to analyze these deals on your own.  It sounds like you are seeking higher returns but want to remain "hands off."  If you go that route, it is an absolute must that you know and understand the type of investments you are participating in.  I would recommend seriously investing in your education through books and mentorship, you can find both here on Bigger pockets. 

If investing in apartment buildings interests you, please feel free to connect with @John Cohen or myself.

Best of luck on your journey,

BTW thanks all who responded to this post, great advice found here!

Originally posted by @Olivia C. :

I've been interviewing new CFPs and other investment advisers and they only want to create for me a portfolio of stocks, bonds, retirement cash, and bank accounts to produce a return of 6% or more.  I can do that myself.

Can you recommend a source that will research real estate investment opportunities for me?

I'm not looking at REITs.  I'm considering being one of several / many investors in large, multi-unit residential and commercial properties managed by others on site (not properties using property management companies.)  

And I'd like to invest in some commercial bridge loans.

I have other things going and don't want to learn how to do this research myself.

Can you recommend someone who will do the research / vetting on these kinds of deals?Is there someone / a firm you have used successfully?

Thanks for your help!

 Talk to Giovanni

@Giovanni Isaksen