Posted over 4 years ago

Have I Found the Holy Grail of Passive Real Estate Investing? (Part 4)

Normal 1516910220 Tall Apt

You Can Read Part 1 Via This Link

You Can Read Part 2 Via This Link

You Can Read Part 3 Via This Link

January 2018

I am starting this Part 4 of the series in part because it is a new year.  More substantially the company I have been investing and writing about has made a very significant shift in their model.  Both the type of assets and the purchase structure have changed dramatically from what they were when I started investing with them more than two years ago.  I will address that and more in a moment, but first my quarterly investment and performance update for the last quarter of 2017.

Q4 payments were made on time. Quarterly reports made available as well.

Equity Portfolios

First bracket () is number of months since fully occupied.  First percentage is annualized returns since that time. Second bracket is annualized return for the last quarter.

Portfolio 1 (24 months):  9.1%  (3.6%)
Portfolio 2 (20 months): 11.3% (10.1%)
Portfolio 3 (12 months):   9.6% (9.4%)
Portfolio 5 (7 month):     11.9% (9.9%)
Portfolio 7 (not yet):       exceeded 8% preferred

Portfolio 1 has continued its downward trend - worse quarter performance yet. The company reported that there are two vacancies.  They have renovated them and started to market at least one on the MLS. Market conditions are favorable for doing so. I'm told the first one listed had multiple offers close to asking within a few days of the listing. This is the first implementation of any kind of exit strategy for any of these portfolios.  I am excited to see how this goes.

Portfolio 7, the 50 unit multifamily, my most recent investment, had 84% occupancy at the end of the quarter, reflecting some turnover renovations to be marketed at new rates. This first payout came a little under the 8% preferred, which they will make up in future payouts. However, the timing of my last minute investment actually resulted in a higher percentage return for me.

Debt Portfolios

Portfolio 4 (10 months):   9.1% (8.2%)
Portfolio 6 (not yet):   received another 8% interest payment

Portfolio 6, my first apartment complex remained at 74% occupancy as they had some turnover at the end of quarter, which they are renovating and marketing at higher rental rates. Apparently the renovations on the burned out units, which are complete gut to stud renovations, went a little slower than expected, but are now near completion. They are expecting to reach well above 90% occupancy within a few months. My best guess is this property will also be refinanced (via bank) by the end of the year.

Noting Changes

When I first invested with this company over two years ago, the offerings were made of Equity portfolios of 10 SFR.  These homes were first acquired by the company prior to the offering to investors.  Purchases and renovations were all done with cash and were completed well under the estimated ARV of the homes.  These were particularly attractive to me for using self-directed retirement funds which needed to be passive investments. Being cash purchases my investments would not be subject to UBIT or any tax obligation.

In the year that followed (2016) the company added Debt portfolios to the mix, and last year expanded into medium size multiplexes, with the goal of doing many more.  The first multiplex (my portfolio 6) was a Debt portfolio - ie: we investors were lenders, that also included 3 year seller financing.  The second (my portfolio 7) was an Equity portfolio and was, like all the SFR portfolios, an all cash buy.  The plan was to do a value add and then refinance with a commercial bank loan 18 months or so into the deal.

 Then toward the end of last year they announced a decision to invest in only multifamily in 2018 and beyond. This is quite a progression, and must be discerned from the investments I’ve been writing about up until now.

Their most recent offering (their third multiplex), is one in which I did not make an investment. However, it is likely the clearest example of what we investors can expect going forward. The offering was a raise for the down payment & minor renovation costs on an 81 unit complex. This marked the first offering where the purchase was being leveraged with a commercial bank loan, 75% LTV - a stark contrast to all the cash investments of the SFR portfolios.

The leveraging likely makes possible the bit higher projected returns of 10-13% cash on cash, with 18-22% IRR. Those projections are based on investor payout of 8% preferred, with a 75% share of net rental income once that 8% is paid out. Investors also receive 75% of profits upon any sale. I believe there were some acquisition and sale fees paid to the company built into the deal. These fees were typical of what I have seen in other multiplex syndications. The minimum investment was $20,000, and the company has made it clear that will be the baseline minimum going forward, and in some instances could be higher. That is twice the minimum on every one of their SFR portfolios, but in line with another multiplex (my Portfolio 7). 

Leveraged acquisitions do provide for better ROI projections, but they also carry additional risk exposure should things go south on the asset.  Also some retirement fund investments can be subject to some tax obligations such as UBIT.

From my view, the shift away from the SFR was largely precipitated by the increasing difficulty for the company to acquire enough distressed properties at a price point that could work for the model.  The demand and shrinking availability of these properties became abundantly evident last year.  The flip side is that is an opportune time to sell some of these held assets.  And that is just what they are starting to do.  As mentioned above they are selling two of the recently vacated properties in my Portfolio 1, which they expect will result in a considerable improvement in the returns on this portfolio. They have also indicated an ongoing consideration to sell other SFR from various portfolios as they become vacant.

Today this company is considerably more matured then when I started investing with them.  They have a multiyear track record, multi-millions in assets, and have the ability to obtain commercial bank loans at favorable rates - something they simply couldn't do when they started out.

Still, much of what I initially considered unique and attractive about this company has changed and for future investment consideration I will be evaluating differently.  Today they are more like many other multiplex syndicators I've seen, albeit via crowdfunding platform and open to non-accredited investors, which most are not.  In addition, I have a track record with them, and they have consistently performed over multiple years. From my perspective, they likely do retain some fairly distinct advantages.

To assist me and my readers in evaluating of future offerings compared to those of yesteryear I have created the following table of comparisons. 

Normal 1516913681 Comparison Table   SFR To Multi Copy

Lots to consider, watch this space for future updates.

First Quarter, 2018 - Update

Equity Portfolios

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time. Second bracket is annualized return for the last quarter. Unbracketed percentage is the annualized return since full occupancy as of 4/30/18:

Portfolio 1 (27 months): 9.0% (9.7%)
Portfolio 2 (23 months): 11.5% (13.3%)
Portfolio 3 (15 months): 10.2% (12.2%)
Portfolio 5 (10 month): 11.5% (9.3%)
Portfolio 7 (not yet): Paid a bit under the 8% preferred

Portfolio 1: Two vacant properties were listed for sale, one is in escrow, the other didn't get much traction and his being put back on market for leasing.  Even with these two properties not bringing in any income for the quarter, the portfolio as a whole really picked up for the first time, turning around a year long trend.

Portfolio 7: This 50 unit complex has reached 88% occupancy, and the managers are expecting it to reach 95% with a couple of months. 

Debt Portfolios

Portfolio 4 (13 months): 9.1% (9.9%)
Portfolio 6 (not yet): received another 8% interest payment

Portfolio 6: Reported to be 85% occupied, and told to expect 95%+ within a couple of months.

Second Quarter, 2018 - Update

I have lots to report for this quarter, for it was like no other. The good news is that during this quarter five properties in Portfolio 1 were offered for sale and went under contract. One closed in Q2, three others closed on July 2, and last one closed later in July. So, just the one impacted the Q2 return of capital and profits, and the rest will impact Q3. However, I received a report of the total ROI on all 5 properties that have closed, and share some of those numbers below. As a whole the annualized returns on these sold properties is very positive, and a good first indication of achieved IRR.

Then I have frankly disappointing news to report. This quarter was by far the worst performing quarter for the company as a whole. For net rental income distributions every portfolio under performed. A couple of my holdings had no distributions at all for the quarter, which was previously unheard of with this company. I reached out to one of the co-founders with my questions and concerns, and here is a little of his email reply:

Q2 2018 was the worst quarter for (company), but I am still 100% confident in meeting and or exceeding the investment expectations that we have set forth. We still have very strong holdings, and I'm very confident all of our investments will be profitable and meet these expectations over the long term.

I then had an extended call with that same co-founder to get a more complete picture about what happened and more importantly what was being done to get back on track. To distill down his frank responses, there were essentially two elements to what he called company growing pains. The first was the annual and semi-annual hits on taxes and insurance payments. Those costs particularly hit hard on the multifamily properties this quarter. To address this, going forward they are making changes by internally escrowing (holding) on a monthly basis funds to cover these things, much like a mortgage servicer does impounds. The expected effect is one of leveling out the average monthly net returns and quarterly distributions.

Second, they have had turnover in the areas of property management led by their high performing Property Manager (PM) being recruited away, and the quality leasing agent taking on the job. This all led to what I gather was a sharp downturn in PM and lease up performance. The good news is that at the time we spoke, he reported that they were solidifying an agreement to bring back the PM, which would allow the one time leasing agent to return to that job. So, at this point, I’ve got my fingers crossed it all works out. What I do continue to have confidence in is the level of company transparency and ability to address issues as they arise.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 6/30/18. Second bracket is annualized return for the last quarter.

Equity Portfolios

Portfolio 1 (30 months): 12.5% * (4.5% plus returned 10.6% of my invested capital)
Portfolio 2 (26 months): 10.7% (3.3%)
Portfolio 3 (18 months): 10.2% (4.4%)
Portfolio 5 (13 month): 8.8% (0% as in no distribution)
Portfolio 7 (not yet): No distribution this quarter for this apt complex.

Portfolio 1: These calculations are still rough, but the total investor ROI for the 5 sold properties averaged approximately 52%, with an average annualized return of 18.9%. This rate of return is toward the top of range of the 12-20% IRR projected for the entire portfolio. This is very promising for this first executed exit strategy of any of the holdings. Of course, five of the properties will continue to be held for rental income, and reportedly not sold for some time. So it is too early to know what the final IRR will be for the investment as a whole. *The 12.5% annualized return will be subject to adjustment once capital return is properly accounted for, and next quarter when the additional sale profits are factored in.

Portfolio 5: Reason given for no distribution for quarter was that there was no operating cash flow due to turn costs on two properties plus tax payments.

Portfolio 7: This 50 unit complex reported still at 88% occupancy, and the managers are expecting it to reach 95%+ with a couple of months. This is a repeat of what they said last quarter, and reflects the property management difficulties I discuss above. Reasons given for no distribution were property taxes, annual insurance premium and turn costs on units.

Debt Portfolios

Portfolio 4 (16 months): 8.7% (7%)

Portfolio 6 (not yet): received another 8% interest payment 

Portfolio 6: 41 of 46 units now occupied (89%+), and told to expect 95%+ within a couple of months. 

Third Quarter, 2018 - Update

Unsurprisingly, both the positives and negatives originating in Q2 continued to play out this quarter. In Portfolio 1, four sold properties resulted in a hefty return of capital and very nice profits. On the negative side, two of my portfolios had no distributions at all. The good news is that the company successfully recruited the one time property manager and in September she returned as the new COO. The expectation is that she will be able to get things back on track to a very efficient system. She once managed 3,500 units, and is very highly regarded. Time will tell, but I am cautiously optimistic that the turnaround will play out soon.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 9/30/18. Second bracket is annualized return for the most recent quarter (Q3 18).

Equity Portfolios

Portfolio 1 (33 months): 13.6%* (64% plus returned additional 44.3% of capital)
Portfolio 2 (29 months): 9.3% (0% as in no distribution this quarter)
Portfolio 3 (21 months): 9.2% (9.2%)
Portfolio 5: (13 months): 10% (Closed out end of Q2, see below)
Portfolio 7: No distribution again this quarter for this apt complex.

Portfolio 1: About 55% of original capital invested has now been returned. With the capital returned and realized profits paid on 5 of the 10 original properties, these calculations are still rough in determining the true ROI, but things are looking good on the executed exit strategies thus far. One additional property is for sale and the managers report they are looking for best ways to sell the remaining properties in the portfolio. *The 13.6% annualized return will be subject to adjustment once capital return is properly accounted for.

Portfolio 2: Had 4 properties (of 10) vacant at end of quarter. Along with renovation costs to make ready for new tenants the managers reported there was not enough cash flow to make a distribution. Two properties are for lease with pending applications, other two will be marketed for lease soon.

Portfolio 5: This was one of only two portfolio investment from my personal, not retirement funds. As I needed to raise some capital for an unexpected business expense, I asked to exit this portfolio at the end of Q2. The company complied by offering it as a straight transfer to another investor already in the portfolio. It was picked up within a few hours of the offer going out. To cover the extra administrative work, I paid a small fee that was equivalent to 1.33% of my investment, but other than that received all my capital back. Nearly an 11% total return over the life of the investment over 17 months, it was 7.7% annualized ROI. Not bad for an investment I had to pull out of early.

Portfolio 7: This 50 unit complex reported dropped to 80% occupancy with more move outs then move-ins. The managers attribute that to their poor management efficiency for the last couple of quarters. They don’t expect to meet the 8% preferred return for this year, but will make up the difference next year, possibly with the cash out refinancing.

Debt Portfolios

Portfolio 4 (19 months): 8.8% (9.5%)

Portfolio 6: received another 8% interest payment

Portfolio 6: Just above 90% rented out, and told they plan to execute a bank refinance between December and February. 

Fourth Quarter, 2018 - Update

This is for the last quarter of the under performing year (2018) for most of my portfolios. For this quarter two of my portfolios had no distributions at all. The promising news is that there are strong indications that things are turning around and 2019 will be much better. Portfolio 6, a debt portfolio, has entered the refinancing stage. This is the first time the company is executing this type of exit strategy on any of its holdings.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 12/31/18. Second bracket is annualized return for the most recent quarter (Q4 18). All reporting are as of end of 2018.

Equity Portfolios

Portfolio 1 (36 months): 12%* (0% as in no distribution this quarter)
Portfolio 2 (32 months): 8.4% (0% as in no distribution this quarter)
Portfolio 3 (24 months): 9.1% (7.9%)
Portfolio 7: (84% occupancy): 8% preferred* (2.7%)

Portfolio 1: The driver behind no distribution this quarter is vacancy and turn costs. Of the 5 remaining properties in this portfolio, two are being marketed for rent, one is for sale, and two are occupied. The managers are looking at options for selling the remaining properties in this portfolio. *The 12% annualized return will be subject to adjustment once capital return is properly accounted for.

Portfolio 2: During Q3 & Q4 there were six move outs. All but one of them is now rented. The one up for lease already has 2 pending apps. So, this portfolio looks good going forward.

Portfolio 3: 8 properties currently occupied, one being marketed for rent, and another just vacated.

Portfolio 7: This 50 unit complex had 9 move ins and 6 move outs during Q4. Current occupancy at end of year was 84% (90% by Jan 31st), which is an improvement from previous quarter. Existing units when turned over proved to be in worse shape than known, and thus more costly to turnover then anticipated. Thus the small distribution. The managers say the amount of the 8% preferred return that was not paid in 2018 will carry over to 2019 and be paid to investors from the proceeds of the refinance. They are now estimating that to be in 6 months. Given that their timeline forecasts have been consistently over optimistic, I’d venture it will be at least a little longer than that, maybe close to the end of the year.

Debt Portfolios

Portfolio 4: (22 months): 8.7% (8.9%)

Portfolio 6: (apt complex at 91% end of year and 100% on Jan 31st) received another 8% interest payment

Portfolio 4: 9 properties are occupied and one is in process of turn for re-leasing.

Portfolio 6: With pre-leased units (includes approved tenants who have yet moved in) occupancy is at 93.5%. They have started the refinance of the property, which they hope will close within 60 days. They expect the vast majority, possibly all, of invested capital to be returned to investors with this refinancing. This is an exciting prospect, as even if all capital is returned, investors will continue to receive 25% of rental cash flow and 50% of profits on any sale. 

2019

Q1 2019 - Update April

This is for the first quarter of what is promising to be a turn-around year after 2018’s underperformance for most of my portfolios. Across all my portfolios occupancy is way up for this quarter, particularly in the two apartment complexes. Exit strategies in two of the portfolios are proceeding to be executed. Still, cash flow wise this was another underperforming quarter. I get into some of the details below.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 3/31/19. Second bracket is annualized return for the most recent quarter (Q1 19). All reporting are as of 3/31/2019.

Equity Portfolios

Portfolio 1 (39 months): 15%* (0%)
Portfolio 2 (35 months): 8.5% (3.1%)
Portfolio 3 (27 months): 8.7% (3.3%)
Portfolio 7: (apt 100% occupancy): 8% preferred* (4.9%)

Portfolio 1: Three more properties were sold in February, which leaves just 2 properties in this portfolio. The three properties were sold on contract, and the company says these will average 18% to 21% ROI to investors when the loan balance is paid off in one to three years. They are working on selling the remaining two properties, one of which is occupied and the other vacant. They explained that costs of sale and selling on contract made for no cash flow distribution for this quarter, as the small down payments just covered costs. *The 15% annualized return will be subject to adjustment once capital return is properly accounted for.

Portfolio 2: 9 properties are occupied, 1 vacant, but this followed 6 move outs in the last two quarters of 2018. The company says this portfolio is getting back on course, but it still underperformed cash flow wise Q1 due to vacancy and turn costs.

Portfolio 3: 9 of 11 units (one duplex in portfolio) currently occupied. One property is ready for lease, and another is finishing turn process.

Portfolio 7: Currently 100% occupied which is a total turnaround from late 2018. Still playing catch up on receiving full preferred return, but this was the 2nd quarter there was actually a distribution after the dry hole of cash flow in the 2nd half of 2018. *When the preferred return is not met in distribution, it is carried over, and to be made up later, most likely from the proceeds of the refinance.

Debt Portfolios

Portfolio 4: (25 months): 8.6% (9.5%)
Portfolio 6: (apt complex at 93.5%) received another 8% interest payment

Portfolio 4: All 10 properties are occupied.

Portfolio 6: Current occupancy is at 93.5%. It actually reached 100% the end of February, but they had a few move outs in March. A refinance loan with Freddie Mac is proceeding, which the company hopes to close by end of Q2. Freddie Mac wants to see longer operating history above 90%.   

Q2 2019 - Update August 


First, I am very late in posting this update in large part due to the fact that the company had a major website update. Once the update was in place, it took some weeks to populate with the all the historical and current reporting. Actually all the portfolios are not yet fully populated, but I have enough info to make the update.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 6/30/19. Second bracket is annualized return for the most recent quarter (Q2 19). All reporting as of 6/30/2019.

Equity Portfolios

Portfolio 1 (42 months): 14.3%* (No income distribution, but returned another 6.8% of my original capital investment)
Portfolio 2 (38 months): 8.5% (3.1%)
Portfolio 3 (30 months): 8.7% (4.4%)
Portfolio 7: (apt 96% occupancy): 8% preferred* (5.8% actual distribution)

Portfolio 1: One more property in this portfolio was sold, leaving just one property left in the portfolio, which is currently vacant and for sale. The only distribution this quarter was a return of capital due to the sale. *The 14.3% annualized return will be subject to adjustment once capital return is properly accounted for, which is not yet reflected in the new website.

Portfolio 2: All 10 properties are occupied as of 5/1/19, but this followed enormous turnover costs during the first two quarter. The result, there was no distribution at all this quarter, but company indicates the second half of the year should be back on track.

Portfolio 3: All 11 units (one duplex in portfolio) are now occupied. This should lead to better returns in the second half of year.

Portfolio 7: Income is growing month after month the company reports and that is reflected in a slightly higher distribution. Still they are still catching up to paying out the preferred return. *When the preferred return is not met in distribution, it is carried over, and to be made up later, most likely from the proceeds of the refinance or sale.

Debt Portfolios


Portfolio 4: (31 months): 8.6% (8.8%)
Portfolio 6: received another 8% interest payment

Portfolio 4: All 10 properties are occupied, and this debt portfolio continues to be a consistent performer.

Portfolio 6: Current occupancy was not fully reported. Some state income taxes were taken out, even though mine is a retirement account investment. I was told those funds will be distributed after the end of the year accounting. This quarter the company made a decision to not take on the debt risk of a refinance, and instead sell the property in what is a very good market to sell. It is under contract and currently expected to close at the end of August, and at a considerable profit. They also have a back-up offer at the same price, should the first buyer be unable to close due to financing. I am actually looking forward to seeing this sale play out and what kind of ROI will be achieved. Hopefully I will be able to report on that successful sale and distribution in the next quarterly update.

Q3 2019 - Update November

Again, I am very late in posting this update. This time it was mostly due to a my waiting for the final profit report and distribution to come through on Portfolio 6 and its completed sale. That finally came through a couple weeks ago. Details of this completed sale of an apartment complex and returns is the most exciting news I have to report for this quarter.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 9/30/19. Second bracket is annualized return for the most recent quarter (Q3 19). All reporting as of 9/30/2019.

Equity Portfolios

Portfolio 1 (45 months): 12.6% (0%)
Portfolio 2 (41 months): 7.6% (5.8%)
Portfolio 3 (33 months): 8.3% (6.3%)
Portfolio 7: (apt 92% occupancy): 8% preferred* (6.4% actual distribution)

Portfolio 1: Capital return has now been properly accounted for in the annualized IRR. Capital return is about 62% of my original investment in this portfolio. Just one property left in this portfolio that remains unsold. The company reports it is advertised for sale and they have one very interested party. As previously reported there are 3 other properties that were sold under contract. Eventually they should produce some cash flow and eventually return of capital.

Portfolio 2: Two move outs during September, leaving both properties vacant at end of quarter. They are being made ready for new tenants. These move outs meant the portfolio fell short on net cash flow and will likely impact Q4 as well.

Portfolio 3: All 11 units (one duplex in portfolio) are still fully occupied. Company reported that this portfolio had a good quarter.

Portfolio 7: This apartment complex went under contract to a buyer during Q3 and.is expected to close in Q4. That will result in a full return of capital, the balance of preferred returns owed, plus a share of profits to myself and the other investors.

Debt Portfolios


Portfolio 4: (34 months): 8.6% (9.8%)
Portfolio 6: Sale was completed for return of capital and profit share.

Portfolio 4: This portfolio reportedly had a great quarter, and has been a consistent performer.

Portfolio 6: This was the first portfolio, and apartment building, the company fully exited. How’d they do? Their projections were for an IRR of between 15.1% and 19.3%, and they claim the return fell at 16.3% annualized IRR. However, when my calculations didn’t fall in line with that, I learned from one of the managers, that both the projections and the claimed final IRR were calculated pre-tax (state income tax), while I received the after tax income only. What I received was more like 14% IRR. I confess that it was frustrating to learn that this tax was taken prior to payout to investors, as this investment is by a retirement account and should not be subject to income tax. However, as it is a debt portfolio, the partnership that actually owned the building had to pay the tax prior to paying the debtors (investors). That said, I learned something valuable from this experience and am largely satisfied with the results of this completed investment.

Q4 2019 - Update January 2020

This quarter saw the close on sale of another of my apartment portfolios, Portfolio 7. This was my only other apartment portfolio, so now all of my remaining investments with this company are based on their original model of 10 SFR in debt free portfolios.

Returns (ROI)

First bracket () is number of months since fully occupied. First percentage is annualized returns since that time, as of 12/31/19. Second bracket is annualized return for the most recent quarter (Q4 19). All reporting as of 12/31/2019.

Equity Portfolios

Portfolio 1 (48 months): 12% (0%)
Portfolio 2 (44 months): 7.3% (4.6%)
Portfolio 3 (36 months): 9.1% (6.5%)
Portfolio 7: Sale was completed for return of capital plus delayed preferred return, plus profit share resulting in a 10.8% IRR.

Portfolio 1: The last property in this portfolio is currently under contract for seller financing, just awaiting buyer to come up with the down payment to close. The company reported that interest income collected on the 3 properties sold under contract fell about $1,000 short of the negative balance on this account at the beginning of the quarter. That is why there was no distribution this quarter, closing out an entire year where there was no earnings distribution. The only distribution was return of capital.

Portfolio 2: This portfolio had several move outs during the quarter and with turnover costs fell well short of projected income. Company expects full occupancy by end of Q1 2020.

Portfolio 3: Company reported that this portfolio had a good quarter, but still there were 2 vacancies (of 11 units) at the end of the quarter. Distribution for the quarter was below projections.

Portfolio 7: So, the company decided to sell this apartment complex instead of refinancing, as initially projected, due to the under performance of the portfolio and the fear of taking on too much debt. I am glad they did so as I agreed the risk reward of refinancing was not worth it. While this near 11% annual return on my investment was way under the target of 16-18%, I am glad it delivered returns as well as it did, and happy to be out of this investment.

Debt Portfolios

Portfolio 4: (37 months): 8.4% (9.8%)

Portfolio 6: SOLD, see previous quarter’s update

Portfolio 4: This is the only remaining debt portfolio had another great quarter, and continues to be a consistent performer.

Q1 2020 - Update May 2020


This quarter closed with the Covid19 pandemic emergency in full bloom. As a result the portfolios managers made a decision to prepare for what might be coming and suspend distributions as a measure of safety in case tenants should fall behind on their rent. I consider that a prudent decision given the large scale uncertainty. Accordingly I will skip the ROI reports, and just share descriptive updates for each of my remaining 4 holdings I have with this company. 

I should note that all of these, with one exception – a duplex, are single family portfolios, and at the end of the quarter they had a buyer for a large portion of the companies remaining SFR holdings. This includes all of those remaining in my investments with them including the duplex. Unfortunately, that deal is on hold as a result of that buyers financing falling apart under pandemic related uncertainty. At last report, the buyer was still interested in going through with the purchase if and when financing comes back on line.

Equity Portfolios

Portfolio 1: There is just one property left in this portfolio. That property remains vacant. The previous buyer for this property fell through. Now it is being included with the package of SFR properties of the new buyer mentioned above. There are also 4 other properties that were sold under seller financed contracts. Mortgage payments will continue to be collected for those properties until paid off within 3 years.

Portfolio 2: Four of the properties of the 10 were renovated and leased up for 100% occupancy by the end of quarter. However the turnover costs ate up any potential cash flow for the quarter. With full occupancy, they are now poised for a good Q2 cash flow, assuming tenants manage to pay all under the COVID 19 restrictions.

Portfolio 3: Full occupancy of all 11 units (this is one with the duplex) by the end of the quarter. There were apparently two turnovers during the quarter, including one that need major renovations. All in all, the company reports cash flow was reduced by about 70% for the quarter.

Debt Portfolios

Portfolio 4: This debt portfolio had another great quarter, with nothing out of the ordinary. It continues to perform the most consistently of any of my holdings with this company.

Q2 2020 - Update July 2020


As the pandemic emergency continued throughout this second quarter (and beyond) the company did feel comfortable enough to make distributions this month to cover both those held back for Q1, as well as Q2. They did report that there rent collections are down for all their single family holdings due to Covid19 job losses. They are collecting about 80% of rents owed during the month, down about 10-15% from pre-Covid times. 60 day collections are about 90%, which is also lower than normal. Three of the four portfolios had distributions, only one of those came close to normal.

The buyer for all the single family properties in these portfolios I still hold fell through due to the inability to obtain financing, which is also Covid related. At this point the company is moving forward with selling all held single family properties either individually or in small groups.

Equity Portfolios

Portfolio 1 (54 months): 11.3%* (0%)
Portfolio 2 (50 months): 6.7% (1%)
Portfolio 3 (42 months): 7.7% (3.6%)

Portfolio 1: There is was no distribution for this quarter, as the single property left in this portfolio was renovated to prepare for sale. The cost of renovation exceeded any interest income from the 4 properties that are under seller contract. That remaining property is under contract under favorable terms. It is expected to close within 30 days. That close should result in a return of principal on that home, plus some nice profits to us investors.

Portfolio 2: The Company reported a good Q2 for this portfolio with on budget net income and 100% occupancy. However Q1 had a net loss, with turnover costs and getting ready for new tenants. Thus, the underwhelming distribution.

Portfolio 3: The Company also reported a good Q2 for this portfolio. Also has 100% occupancy. Again, Q1 had turnover costs and some renovation on one property. Distribution is for both quarters as is also under normal for two quarters.

Debt Portfolios

Portfolio 4: (43 months): 8.7% (9.3%)

Portfolio 4: This debt portfolio had good quarters for both Q1 and Q2, and the distribution was in line for both quarters in what would be expected during normal times.

Q3 2020 - Update October 2020


As per last quarter, the company continues collecting about 80% of rents owed during the month, down about 10-15% from pre-Covid times. 60 day collections are about 90%, which is also lower than normal. The company reports that overall Covid-19 job losses have impacted these single family holdings, and impacted their bottom line. Still there were some decent distributions for this quarter.

Equity Portfolios

Portfolio 1 (57 months): 9.9%* (0%)
Portfolio 2 (53 months): 6.9% (11.2%)
Portfolio 3 (45 months): 7.8% (9.6%)

Portfolio 1: No distribution for this quarter. Still one property left in this portfolio, which they have had trouble selling as a vacant investment property. They are looking at selling this home under contract where they take a decent down payment and hold the note for one to three years. Still collecting mortgage and interest payments on 4 properties previously sold this way. NOI on this portfolio was positive for the quarter, but no cash for distribution due to the repairs made on the remaining property.

Portfolio 2: There was a good quarter for this portfolio. Income was up and expenses down, resulting in one of the best distributions in some time.

Portfolio 3: The Company also reported a good Q3 for this portfolio wit 100% occupancy.

Debt Portfolios

Portfolio 4: (46 months): 9.6% (13.6%)

Portfolio 4: One property was sold from this portfolio during this quarter for a very healthy profit, resulting in a capital return of 8.79% of my investment. The profit was at an annual rate of nearly 17% and boosted the income distribution of this portfolio for the quarter to the 13.6% annualized rate.

Q4 2020 - Update February 2021


This quarter had a whole lot of activity for my holdings with this company. All four had sales of SFR including Portfolio 1 in which the last property remaining sold. In addition, all the seller funded loans on previously sold Portfolio 1 properties were paid off, and the portfolio was closed out.

Now three of the seven portfolios I’ve reported on with this company have closed out. Another one I exited some time ago, selling my shares to another investor. That leaves me with just three of those seven left to report on going forward.

However, for the first time in years, I invested in a new portfolio with this company. This is actually a new build of a 55+ (senior) apartment village complex and thus likely won’t have any cash flow any time in 2021. I shall call this Portfolio HV. More details below.

As per the previous Covid-19 quarters, the company continues collecting about 80% of rents owed during the month, down about 10-15% from pre-Covid times. 60 day collections are above 90%, which is also lower than normal. Still, as result of the sales mentioned above there were some excellent distributions of earnings and returns of principal for this quarter.

Equity Portfolios

Portfolio 1 (60 months): 10.4% (118.6%) – Now closed.
Portfolio 2 (56 months): 11.2% (29.5%)
Portfolio 3 (48 months): 10.1% (32.7%)

Portfolio 1: With the full close out of this of this portfolio and all properties sold, I achieved a 48.2% total return over the 5 year life of the investment. Given that I had some capital return along the way that made for a 10.4% annualized return (IRR) on my investment dollars. This is a decent return, but fell well short of the company’s target of 12-20% IRR. So it is a bit disappointing.

Portfolio 2: Sale of 7 of the 10 homes in this portfolio resulted in a return of capital of 67% of funds invested. The sales also resulted in an average of annualized ROI of 21.32% spread across all seven. The best performer returned a bit over 30%, the worst at 12% ROI annualized. After an extensive renovation to maximize gain from a retail sale, an eighth property has a pending offer on it, that if closes will net a very substantial profit. The company is also planning to sell the remaining two properties when the timing warrants.

Portfolio 3: Four of the 10 properties, including one duplex, sold in this quarter. This resulted in a return of 38% of my investment capital. Profit from these sales along with rental income had a 21.6% annualized return. Nice.

Portfolio HV: As mentioned this is a new build specialized apartment and village complex designed for senior community living. The company is working in partnership with a developer who has built these senior villages elsewhere, as well as partnering with another investment company. This is a 131 unit development, with retail & restaurant space built in. It is one of the very hottest of Midwest markets, and a new one for me. Although there will be no returns or cashflow this year, there is an 8% preferred return from day one, and 40% of the operating cash flow and profit from sale or refinance to the participating investors. The projections are for returns of 11 to 13% cash flow prior to refinance and total annualized returns of 17%+. Time will tell if these projections are met, but I am excited about this investment.


Debt Portfolios

Portfolio 4: (49 months): 9.1% (10.3%)

Portfolio 4: There was an additional sale of one property in this portfolio, resulting in another 12% return of capital of my initial investment. The sold property had a 9.9% annualized IRR. In addition a third property was sold at the very end of the quarter, and that capital and profit will not be distributed or reported until the end of this current quarter. That leaves 7 properties still in, and like the other, they plan to sell off the rest at advantageous moments to do so.

Q1 2021 - Update

This quarter saw quite a few more sales of the single family homes the company is selling off, but the 3 single family portfolios remaining, still have 1 or more homes in each remaining at the end of the quarter. Anyway capital and profit returns continue to be distributed.

As a result, I was able to turn over some of that return of capital into yet another offering by this company. This one is 160 unit multi-family complex in the Southeast. This is considered a B+ class in an A+ location. The sponsors plan to do a value-add, upgrading units and raising rents substantially. The purchase of this property closed in the last few days of the quarter. So brand new. 7% Preferred Return to investors, plus 70% of operating income to investors. A total projected annual cash flow of 7-9%, and ROI of 15%+ over life of project once sold. I shall call this Portfolio AZ.

Equity Portfolios

Portfolio 2 (59 months): 14.8% (77.9%)
Portfolio 3 (51 months): 11.4% (10%)
Portfolio HV: (3 months): Being built
Portfolio AZ (0 month): Returns next quarter

Portfolio 2: Sale of another 2 of the 3 homes remaining in this portfolio resulted in a total return of capital of 90% of original funds invested. Profit from these sales resulted in an average of annualized ROI of 19.27% for the two. The company is planning to sell the one remaining property.

Portfolio 3: 2 more of the remaining 6 properties, sold in this quarter. This resulted in a return of additional capital, for a total return of 60% of capital. Profit from these sales along with rental income had a 21.6% annualized return. Operating income this quarter was pitiful with 2 of the remaining 4 properties vacant.

Portfolio HV: Progress was made on the launching of the building of this project, and we are still a ways out before it will be completed and produce income.


Debt Portfolios

Portfolio 4: (52 months): 10.8% (9.4%)

Portfolio 4: An additional 6 properties were sold from this portfolio, leaving just 2 homes in, which the company plans to sell as well. They had an average of 16.71% annualized ROI.

Q2 2021 - Update

A couple more sales of the single family homes the company is selling off, with just five single family properties left in my portfolios.

I made investments in another portfolio offered by this company. This was the most unusual portfolio of all, really 3 projects in 1 portfolio. The three are a 281 unit multi-family in one southern state, a 143 unit in another southern state, and a 67 bed upscale boutique hotel project in a town that is a gateway to the Smokey Mountains. This was exciting project to have an opportunity to invest in, and I made my largest investment yet, really 3 investments from different accounts, with this project. The two multi-families are projected to produce a 20%+ cash on cash return over life of projects. The hotel 17%+ cash on cash alone. I will call this Portfolio RHA.

Equity Portfolios

Portfolio 2 (62 months): 13.6% (0%)
Portfolio 3 (54 months): 11.1% (14%)
Portfolio HV (6 months): Being built
Portfolio AZ (3 month): 5.1% (7.5%)
Portfolio RHA (1 month)

Portfolio 2: Just one property left in this portfolio which was under rehab in preparation for sale. This was described as the most extensive rehab the company has done to a SF. There were no distributions in this quarter. 90% of capital has been returned.

Portfolio 3: One more of the remaining four properties, sold in this quarter, leaving three. This resulted in an additional return of additional capital, for a total return of 68% of capital. Profit & cash flow income from that sale was 20.5% annualized. Two of the three properties are occupied at end of quarter, with one vacant. The vacant one has been rehabbed and is under sale contract.

Portfolio HV: The sponsors report great progress on the construction of HV, and thus far seems to be on time for completion for Spring 2022, and certificate of occupancy that summer.

Portfolio AZ: Unit upgrades began immediately after closing, 30 completed and other 19 in progress. 10 tenant move-ins to renovated units with average of $300 increase per unit over previous rents. Exterior improvements are underway as well. I also received the first distribution of cash flow, at a touch over the 7% preferred rate to investors.

Portfolio RHA: Closings on three elements of this project happened in the final days and weeks of the quarter. There is an existing hotel on the lot where the new hotel is being built, and that is set to be demolished mid-July.


Debt Portfolios

Portfolio 4: (55 months): 11.3% (128%)

Portfolio 4: Another property was sold for a total annualized investor return of 21.3% ROI. 88.5% of capital has now been returned. Just one property left to sell in this debt portfolio.

Q3 2021 - Update

I am rather late in posting this last quarter’s update mostly due to a delay in receiving updates from the company’s sponsor partners in the newer projects, which is all the projects I invested in this last year. The partners are bringing the bulk of the capital to the projects and are also the managers in these ventures. This is a sea change in the portfolios of the past, which were entirely this company’s ventures. And this change has led into this much larger projects and vastly different opportunities, which I began to invest in late last year.

One more of the single family homes the company is selling off closed, with just four single family properties left in my portfolios. And one of those is already under contract.

During this quarter, I made investments in two more offerings by this company. The first was a 248-unit, Class A apartment community in another southern state. Occupancy at the time was 96%. The company and their partners are planning this 2007 complex as a value add, that will result in a capture of $300 rent increases over a 3-year time frame. I made two investments from different accounts, one retirement, one not. 7% Preferred and 70% of the operating cash flow and profit to investors. The target IRR is 26-30%, with projected cash returns running 7-30%. The later higher figures after refinancing and return of much capital. I will call this Portfolio PRO.

The second offering I invested in during this quarter came days later and was the same design and developer as Portfolio HV. I made a relatively small, single investment in this 55+ retirement apt village, which is 130 units and in the same state, different city as HV. It will be a new build that is projected to take 12-18 months to complete. It pays investors an 8% preferred return from day one, 50% of the operating cash flow. In all, they are projecting annualized returns of 17%+. I will call this Portfolio HM.

Equity Portfolios

Portfolio 2 (65 months): 12.9% (0%)
Portfolio 3 (57 months): 12.7% (176%)
Portfolio HV (9 months): Being built
Portfolio AZ (6 months): 7.1% (6.8%)
Portfolio RHA (4 months): 6.4% (6.4%)
Portfolio PRO (2.25 months) 4.9% (4.9%)
Portfolio HM (2 months): Being built

Portfolio 2: With just one property left in this portfolio, it operated at a slight loss, so again no distributions this quarter. There were extensive renovations on the property, and it went on the market at a very profitable price. A cash offer was accepted and is now pending.

Portfolio 3: Another of the remaining properties was sold, leaving just two in the portfolio. This resulted in return of additional capital, for a total return of 78.5% of capital. Profit & cash flow income from that sale was 20.8% annualized. One of the two properties remaining are occupied at end of quarter, with one vacant. Company is currently looking for alternative housing for the remaining tenants, so that they can renovate and sell.

Portfolio HV: Sponsors are reporting that despite construction delays in June and July, the project is still trending on time for Spring 2022 completion. Delays were due to volatility in lumber prices. They delayed a purchase until prices “normalized” to lower levels. They stated by delaying the lumber purchase, they were able to save some $550k from the peak prices. Photos of the construction progress were also provided.

Portfolio AZ: Distribution this quarter was at an annualized rate a touch above the 1-year projections. Unit upgrades in this 160-unit property began immediately after closing. Tenants that have come up for renewal have been told they must move out to renovate their units. Although many of these tenants transferred into upgraded units at $300-$400 increased rent, occupancy has dropped to 70%. It is expected to stay artificially low for the next several months as property continues in heavy renovations and repositions itself with a more affluent demographic. Occupancy is expected to rise to 90% in Q2 2022, when the vast majority of upgrades are completed. Building wide exterior, landscaping and common space improvements have also begun.

Portfolio RHA: Distributions from the first full quarter of this 3 project investment came out at 6.4%, which is right in line with the first year projections. This is a little below the 7% (apts) & 8% (hotel) preferred returns. Given that the hotel is in process of being built, the returns are all coming from the two apartment complexes, and on their own, appear to be producing cash flow profits in excess of the preferred returns.   The occupancy of two apartment complexes are at 97% & 94%; with 99% and 97% collections for the quarter.  Renewals are running at a higher rate over previous leases in both.

On the hotel, the demolition of the pre-existing hotel has begun and reportedly making great progress. 

Portfolio PRO: The close on this property happened about half-way through the quarter (Aug 12). Since then, the managers have changed the name of the complex, which they report is getting favorable response from the tenants. Occupancy at end of quarter was 90.3% and 91.5% pre-leased. In September, the property rolled out a Preferred Employer Program which offers waived application and administration fees and a 3% monthly discount. Reportedly this has attracted many potential tenants.

Portfolio HM: Construction work has begun on this project, mostly clearing the 7-acre site, and preparing it for the concrete building pad. Footers are in place along the exterior of the building. A few photos of progress were provided. Reportedly on track for completion in the Winter of 2022/23.

Debt Portfolios

Portfolio 4: (58 months): 11% (4.5%)

Portfolio 4: With only one property left, distribution this quarter was interest only, and was pretty minimal at that. The tenant has been given notice to vacate, and the company is working with them to find alternative housing. Once moved out, the property will be rehabbed and sold.

Q4 2021 - Update

Although distributions are being made in a timely manner on the newer projects, the updates continue to be running quite a bit later. This accounts for my, once again, posting this update 2 months after this quarter ended.

On the older single-family portfolios, there are still three properties left with two being prepared for sale.

During this quarter, I made investments in three more offerings by this company. The first was a 745-unit 4-pack multifamily community in a southern state. The community consists of a mix of traditional multifamily and duplex-style townhomes. It is close to a major state university. The business plan is to renovate 80% of the units in the first two years, for roughly 45% increase in rent. That will bring rents in line with competitive units in the market. The plan also includes a cash out refi in year 3 to return about 84% of investor capital. Cash flow is projected at 7.6-39.7%. The larger return is after the refi. Total IRR projected at 21% annualized. I will call this Portfolio FAY.

The second offering I invested in during this quarter is a 199-unit complex, in a different southern state. Remarkably it has 100% occupancy and was built in 2011. The close on the deal didn’t happen until mid-Feb 22. Renovations of units are planned over a 3-year period for a value add with rent increases of $250-300. On this one, the plan is to return all capital to investors within 2-3 years via a HUD refinance. 2.3% to 12.7% annual cash flow. 23%-24.3% IRR is projected. This will be Portfolio LP.

The third investment was the largest apartment complex yet. Over 1,300 units in one of the largest metro areas in the country. The property was currently 85% occupied, and the purchase price of this 1967 complex was at 35% of the pre-renovation replacement cost. The sponsors plan to renovate 700 units over the first 3 years for roughly a 20% increase from the in place rents. There is also opportunity to gain on even in-place rents prior to renovations, as market rates are 8% higher. After the 3 years of renovations, the managers anticipate getting a refinance to return up to 50% of capital to us investors. 3.6% to 20% cash flow projected, with an IRR of 19.3%-22.2%. I will call this Portfolio NH

Equity Portfolios

Portfolio 2 (68 months): 13.6% (25%) – Closed out 12/31/21
Portfolio 3 (60 months): 12.1% (0%)
Portfolio HV (12 months): Being built
Portfolio AZ (10 months): 7% (6.8%)
Portfolio RHA (7 months): 6.4% (6.4%)
Portfolio PRO (5.25 months) 6.3% (6.8%)
Portfolio HM (5 months): Being built
Portfolio FAY: Closed Nov 11th, no distributions yet
Portfolio LP: Closed Feb 17th, may not have distributions until Q2
Portfolio NH: Closed Dec 22nd, no distributions yet

Portfolio 2: The final property in this portfolio was sold in this quarter, and I received two distributions – the remainder of my capital, and the profit from the sale of the property. Final ROI on entire portfolio investment was 77.32% on the life of the investment. Annualized that comes out to 13.64%, which is at the lower end of the projected IRR range. However, this does not take into account the return of most of the capital over a couple years. A true IRR would come out at least 1-2% higher. As a closed-out portfolio, this one will not appear on future quarterly reports.

Portfolio 3: This portfolio operated at a slight loss this quarter. Thus there was no distribution. While some additional funds were received from the sale of the one property that closed last quarter proceeds were used toward repairs for the remaining two properties in preparation for sale. Both of those properties are now vacant.

Portfolio HV: The construction has made substantial progress despite supply and material costs issues. Exterior walls and interior framing are all in place, with roof on. Photos were provided, and completion is expected late Spring/early Summer.

Portfolio AZ: Cash flow at an annual rate is nearly twice what was projected for the 1st year. An aggressive approach to renovating units as tenants come up for renewal has caused a drop in occupancy to below 60%. If renewing tenants wish to stay, they are moved to renovated units at $300-$400 above their previous lease. The managers report that occupancy is expected to remain artificially low for a few more months and expected to rise to near 90% in Q2 2022. 80 renovated units have already been leased, with another 16 ready to be leased. Several building wide improvements have also been started. All is going very well & on track to be ready to refinance in June/July.

Portfolio RHA: 6.4% returns are right in line with projections for this period. Occupancy with one of the complexes is 99%, the other 92%. On the former, renewals achieved over 1% increase over Q3. Net operating income is exceeding proforma assumptions, and sponsors feel that will continue. On the second complex, ongoing improvement in surrounding market conditions are allowing for significant rent increases to be achieved in both renewals and new leases. Renovations are continuing at full speed, and the renovated units are achieving 40% rent increases, well above initial projections.
On the hotel project, the demolition of the pre-existing hotel is about 70% complete. The city has approved finalized architectural drawings and plans for the new structure. Sponsors report they are on track to complete the new hotel late this year.

Portfolio PRO: Returns for the quarter are in line with projections. Occupancy at end of quarter was 91% and 94.35% pre-leased. Collections continue to be strong and meet the budgeted levels.

Portfolio HM: Construction work is progressing swiftly according to the sponsors. Photos of work in progress were provided. Still expected to be completed in the Winter 22/23.

Debt Portfolios

Portfolio 4: (61 months): 10.2% (6.6%)

Portfolio 4: Distribution was again interest only on the outstanding capital. With just the one property left, and the managers unable to reach an agreement with the tenant for relocating, eviction procedures have been initiated. Once out, a scope of work will be developed to prepare the home for sale.

Q1 2022 - Update

This quarter was another active quarter with one portfolio closing out, and just one single family home left in the last of the 10 home portfolios I started investing with this company back in 2015.

During this quarter, I made an investment in one additional offering, which actually is a two-project portfolio. Both apartment complexes are in different major Southeast markets. One a 228 unit, the other 304 unit. Target IRR for the portfolio is 16.6% to 18.5%. I will call this Portfolio BTC.

Equity Portfolios

Portfolio 3 (63 months): 13.6% (41.7%)
Portfolio HV (15 months): Being built
Portfolio AZ (13 months): 6.7% (6.8%)
Portfolio RHA (10 months): 5.4% (5.5%)
Portfolio PRO (8.25 months) 6% (6.8%)
Portfolio HM (8 months): Being built
Portfolio FAY: (5 months) 3.5% (3.5%)
Portfolio LP: (4.5 months) No distributions yet
Portfolio NH: (4.5 months) 1% (1.6%)

Portfolio 3: This portfolio sold the final two properties, with annualized ROIs of 11.9% and 14.9%. All capital was returned and the final IRR for this investment was at the lower end of the projected at 13.6%. This does not seem to account for the return of capital over time, thus reducing the invested amount and increasing the return on what was still invested. I suspect that would add 1-2% to the IRR in a final accounting.

Portfolio HV: Further progress on construction was reported. While material shortages and manufacturing issues across the nation have also played a role in this project, it construction is still expected to be completed this Summer 2022.

Portfolio AZ: Distributions are running higher than expected for the first two years. Occupancy is running about 55% as the partners are taking an aggressive approach toward renovating units. Every tenant up for renewal has been required to move out to allow renovation. Many have transferred to newly renovated units at $300 to $400 above previous lease.

Portfolio RHA: Distribution as a percentage came out to slightly less than projections for the first time. One of the apartment complexes ended with 96% occupancy, with increased renewal rates. The other complex was at 95% occupancy, a 3% improvement over previous quarter. Renovations are proceeding at full speed, with about $400 rent premiums on the renovated units.
    On the hotel project, demolition of old building was completed about 30 days behind schedule. Material shortages have caused the project to assess a completion delay of the new building to be delayed about 9 months. Partners have adjusted completion to late 2023.

Portfolio PRO: Occupancy at end of quarter was at 85%. In line with budgetary projections, but slightly down from Q4. 40% of units have been renovated since acquisition. Effective rental rates are still well below market. Partners anticipate that as renovations continue that rent differentiation will be captured and the project will perform as projected.

Portfolio HM: Construction work is continuing apace. Even with the national materials shortage, partners expect the project to complete on time during the Winter 2022/23.

Portfolio FAY: This was the first distribution for this portfolio and the completion of the 1st full quarter of ownership. Occupancy was at 91.5%. A number of capital improvements as well as unit renovations are underway to stabilize the tenant base, and improve rents and occupancy. Managers feel confident this project will perform to expectations.

Portfolio LP: This complex did not close until about the middle of Q1, delayed from the projected December closing. So there was not a distribution this quarter, but should be for Q2 after a full quarter of operations. Occupancy is at 95%, and no marketing is occurring, as partners are emphasizing renovations. Still new leases were signed.

Portfolio NB: This project did close in December, and Q1 was its first full quarter of ownership. The distribution was minimal, but partners expect that to increase substantially in coming quarters. Occupancy was at 88.5%, a bit above the 86% expected at this point in projections. 30 units (2.3% of property) have been renovated and another 167 units in progress. Two of the renovated units were leased at $235 premiums to unrenovated units. Other capital improvements are also taking place.


Debt Portfolios

Portfolio 4: (64 months): 9.8% (6.6%)

Portfolio 4: The distribution on this portfolio was again an interest only payment on the one single family property left in this debt portfolio. Rental income decreased as tenant moved out. Renovations have begun to prepare the property for sale.

Coming up in the Q2 Update: I have invested in three additional portfolios during this quarter.

You Can Read Part 1 Via This Link
You Can Read Part 2 Via This Link
You Can Read Part 3 Via This Link



Comments (296)

  1. Hi, Larry, just gone through all four parts of your posting. The performance of the portfolios that this company offered outperformed many of the private placements advertised under Rule 506c. I’m very interested in this company. Could you PM me the name of the company too? Thank you in advance


    1. Thank you, @Li Ou!  I received your email as well, and will respond to that.


      1. Hi, Larry, Thanks so much for replying to my email!


  2. Beautiful and clear write up offering such an informative introduction to the syndication world!  @Larry Fried of course I would love to know the name of the company to do some research.  However, I am curious, when you were initially searching for syndications/opportunities, what were you specifically looking for and what made you commit to this provider for your first investment? 


    1. @Patrick Accomando Wow going back those years, I think I was looking to move into more passive real estate investments then owning rentals on my own.  Then there was the question of diversifying.  As I cover in my first part of this series, the company was offering unique packages of portfolios of 10 SFR, and they handled all the details.  I actually met with them and got to know them, building trust along the way. 


  3. @Larry Fried thank you for this incredible introduction to syndication!  Can you share the name of the company?  Thank you!


    1. And thank you @Kelly Yamamoto for reading.  I will get that into your Inbox.


  4. @Larry Fried this has been a fantastic series! Thank you for the time and effort you’ve put into sharing your experience. It’s been fascinating to follow this company’s metamorphosis from the perspective of one of their early investors. It was also incredibly interesting to follow the story through COVID’s impact. Your insight has been invaluable and I very much look forward to the next installment! 

    I’d also love it if you could share the company’s name and contact details with me. Much appreciated. 

    - Veronica


    1. Thank you @Veronica J. for your reading and high praise.  I will shoot that info over to you via your Inbox.


  5. Hi Larry, huge fan of this blog post. Mind sending me the name of the platform?


    1. Thank you @Corey Young.  It is always nice to have fans. :)  Check your Inbox for that info.


  6. Hi Larry!
    I've been following some of your posts on BP for a while now. And I had some questions. Currently, I have two rentals, however recently as I've been holding onto some cash for a new deal I've begun to realize there may be better deals to be had out of state.
    I was wondering if you can provide me with some recommendations of turn key providers I can look into as well as the syndication you wrote about in this series of articles. 

    Thank you for all the knowledge you spread on this platform!


    1. @Suril Dalal you are most welcome! It is always good to know when someone is finding my posts and writings useful in their REI journeys.  Please check your Inbox, as I have responded to your questions there.


  7. Hi Larry,

    Thanks for the detailed write up. I am a real estate professional and the tax depreciation element is important for me.  The fact that you mentioned the tax depreciation differences between the portfolios was very useful (and something that many descriptions of these don’t discuss). Would you mind sending me the name of the company?

    Thanks in advance. 
     


    1. Thank you, Nick for reading.  I am glad you found this useful.  Check your Inbox for that info.


  8. Larry, Awesome detail on your journey! Thanks for taking the time to share. Would you mind sending me info on this company also? Thanks !


    1. You bet, @David Crouch!  Thank you for taking the time to read.  Please check your Inbox for that info.


  9. Larry,

    Your series on the holy grail of passive real estate investing is the best resource for in depth and unbiased performance of passive real estate options. Thank you!


    1. Thank you, @Ryan T Moninger for those kind words.  


  10. Hi Larry,

    Big thanks for posting that article and continuous updates providing us with information about your experience so far and congrats on your success with them.  I am looking to passively invest myself if possible.  Would you mind sending me a DM with the Company information as well? 


    1. I sure will @Justin Whitfield.  Check your Inbox shortly.


  11. Thank you for the information! Would you be able to PM the company information as well?


    1. I certainly will.  Check your Inbox @Jason Beaver.


  12. Thanks Larry for the series of posts, ongoing performance details and management updates. Could you PM me the company info as well?


    1. Hey Mehlam, I'd be happy to DM you that info, but you don't seem to have a BP account.  So, let me know if you open one.  


      1. Hi Larry - I've now opened an account. Could you please try now?


  13. Hi Larry, 

    Just read through your blog posts here and am intrigued, thanks for the write up and sharing with the community. 


    I have been researching this arena of real estate with syndication deals lately but have not found a sponsor that I am comfortable investing with yet. Would you mind sharing the company's info you're working with? 

    Thank you, 

    Michael Randell


    1. Thank you for your comment @Michael Randell.  I will DM you that info.


  14. Hi Larry,


    As a non-accredited investor, I'm intrigued by the idea of crowdfunding and being able to start with less than the tens of thousands of dollars some platforms require. I appreciate your thorough updates and look forward to reading (and rereading) these in more detail. Would you mind sharing the name of this company with me too, please?

    Thanks,

    Bonnie


    1. You bet, @Bonnie Creech! To be sure this company's offerings do require minimums of $20k-$25k these days, depending.  Anyway, check your inbox for that info.


  15. Hi Larry

    Thanks for the insightful and bare bones truth report

    is it possible to get the information on this company as well?

    Thanks


    1. Thank you @Jimmy Jargins for reading and your comment.  I will DM you that info.


  16. Thanks for the insight @Larry Fried. Very motivating info and very intriguing. Plan on getting into investing myself.


    1. You are most welcome @Adrian Williams.  I am glad you found it helpful.


  17. Hi Larry, Thanks for sharing this story. Mind forwarding me the company name? I am also looking for syndication deals around Massachusetts and southern parts of US.

    Thanks, 

    Yuzi


    1. Hey @Yuzi Stha.  I will certainly share that info.  Check you Inbox.  The company has been doing quite a bit in the South recently.


  18. This is one of the most comprehensive writeups i have seen regarding the returns on a property. Thanks man for sharing it. Could you PM me the company info?

    Regards

    Andy


    1. Thank you @Andy Thakur.  Check your inbox for that info.


  19. I appreciate reading the updates.  Can you PM me the company?

    Thanks,

    A


    1. Thanks for reading @Ann Nguyen! I will message you that info.


  20. Thanks for the detailed blogs. Could you send me the company info?


    1. You bet @James Craft.  Look for that in your Inbox.


  21. Hi Larry, 

    Great read, can't wait for more updates!  Please send me the company info.  Thank you for sharing this.  -Gisele


    1. @Gisele Theriault Thank you for reading.  I will DM that info to you. 


  22. Hi Larry,

    This was a great read! Very interested in learning more. Could you please PM me the company name?

    Thank you!!


    1. Thank you, @Kira DAnnunzio.  Look for that info in your Inbox.


  23. Hi Larry, 

    This is great!! 

    Thank you for sharing. 

    Would you mind PMing the name of the company ?


    1. You bet, Daks!  Check your inbox for that info.  And thank you for reading.


  24. Update for Q2 2021 will be coming late July/early August.  It will include an additional investment or two I've made with this company.  Stay tuned!


  25. Great series of write ups. Could you send me the name of the company and would you still suggest going through them for someone who is a first time investor?

    thanks


    1. Thank you @Tyler Stindtman! I will PM you the info.  To your question, I don't believe syndicated deals are necessarily the best way to go for a first time investor.  In fact, I believe this company requires that investors be at least somewhat sophisticated, or be advised by someone who is. 


      1. Thanks Monica.  I went ahead and messaged that info to you.  Be sure to check your inbox.


      2. This was a really great comprehensive overview of your investments, thanks so much for sharing! Could you please PM me the company name and contact info as well? Thank you! 


  26. This is very informative write-up, I am a beginner who is looking to get into real estate investing and this sounds like a great potential avenue(still need to do my research though). Could you also share the company name with me thanks!


    1. Yes @Shreyas Srivastava. That info has been sent to your InBox.


  27. I really appreciate your answer and tks.


  28. @ Larry Fried

    Hi and thanks for this comprehensive briefing. I would appreciate also the name of the company as well. Also out of all this, if there were 3 points you always look for when picking which investment to go with, what do you always look for?  Tks, Nicole


    1. Thank you for reading @Nicole W.!  I am not sure I could narrow it down to three things, but here are some top ones:

      1) Trusted team?

      2) Safety of investment (what is the level of risk)

      3) Benefit to the community


      1. I really appreciate your answer and tks.


    2. I will PM you that company info.


  29. Larry,

    Reading through your 4-part series has provided a more in-depth look into the REI crowdfunding experience than any other resource I've found online. Thank you for taking the time to share your experience! 

    Could you share the company that you've been investing with?

    Thanks!


    1. @Mike Tiffany I am really glad to hear you have found my series so informative.  It is exactly the kind of effect I was hoping it my updates would have.  Please check you inbox for the company info.


  30. Hi Larry,

    I really appreciate the detailed and thorough updates. Would you mind sharing the company info?

    Thanks again!


    1. Of course @Gittel Grunstein.  Please check your Inbox for my message.


  31. Thank you for the article! Can you please share the company name?


    1. You are welcome @Alex Yakubovich! I apologize for the delay in responding.  Check your inbox for that info.


  32. Hi Larry, thanks for sharing. Would you mind PMing the name of the company? 


    1. You bet @Michael Korwin!  Check your inbox.


  33. Thanks for your write up! Very impressive! Can you pm me their info! thanks a ton! 


    1. Jake, I would PM the info, but you don't seem to have a BP account.  Once established please let me know.


  34. Larry:  Very few will take the time and effort to detail out their REI journey as you have laid out with this type of investment, so first off, thank you for your willingness to share (the good, bad, and ugly). 

    Looking back over your posts and your experience with this operator and strategy, how would you answer your original question now:  Have you finally found the holy grail for passive investing?  How would you do it differently in today's environment?  


    1. @KEVIN SERGEEFF


    2. You are very welcome @Kevin Sergeff! And you ask a good question.  My answer I guess depends on perspective.  I would honestly have to say, that investing in this way via this syndication/crowdfunding company has been a good to excellent way for me to go thus far. That is, it has suited me well for where I am in life.  Yet, it is no Holy Grail.  As you can see from my reporting results have often fallen short of company driven expectations, but not horribly so.  And these are difficult times for many rentals.

      I am glad to have to have made most of these investments, and they have been much easier on my time, attention and stress levels than other real estate investments that I have been much more active with.


  35. Chris,

    I just found your original post and then read through every single one of your 4 posts in this series. Thank you for the hard work you've put into tracking this. Would you be willing to send me the information on this company? Thank you so much.


    Jon


    1. Sure, look for that in your InBox.  That you @Jonathan Burrup for the thorough read and the appreciation! :)


  36. Thank You very much for sharing your detail experience with this crowdfunding company! Can you PM me the company name and contact info.  Lazaro


    1. Will do @Lazaro Barreto!  And thank you for reading!


  37. Hi Larry, hoping you can pass the name of this company along to me...

    I was very interested to read your post when I saw that you’re in Eugene. I graduated from the U of O in 2005 and still have family there.


    Thanks for this thorough post. Really helpful!


    1. You bet @Justin Daniels. I just sent a DM to your Inbox with that info.


  38. Wow! Unbelievable write up. Would you be willing to PM the name and contact info for this find?

    Thank You Larry 🙏 


    1. @Joel Hutchinson Thank you for the kind words.  I will definitely provide that info.  Check your Inbox.


  39. Larry, thank you so much for your detailed write-up! My wife and I are looking for other avenues to invest as we've maxed out our personal loan limits.  Could you please share the company info?  Thanks and happy Thanksgiving!


    Brian


    1. Brian Downs, you don't seem to be a member of BP, and thus I can't provide that info to you in your InBox.  If you sign-up, let me know, and I will provide.  Otherwise, thank you for reading, and Happy Holidays!


  40. Hey larry, thanks for posting these updates. Could you please PM me the name of the fund?


    1. You bet @Chandler Corn! Check your inbox for that info.  To be clear, this is not a fund, but a crowdfunding company that has separate investment opportunities. Unlike a fund one always knows the properties being invested in.


  41. It has been very interesting going through these posts, and I look forward to seeing how things go over the next year. Would you please send me the name of the fund?

     


    1. Hi @Maxime Vrainom! I just want to be sure that you saw I sent that info.  Check your Inbox.


  42. Thank you for the thorough write-up of your experience.  Could you please send me the name of the company?


    1. Well I would, but am not able to as your BP account is closed.


  43. This is very helpful as I'm trying to check where else I can invest to diversify. Do you mind sharing the company information? Thank you for all the hard work here!


    1. I can absolutely share that info @Melissa Argente.  Look for it in your InBox. 



    1. Yes @Vivian Kim, I will PM you the info.  Q1 report is already posted, and I will soon be posting a Q2.


  44. Wow, this is an incredibly well done write up of your experiences with this company. Thanks for taking the time and energy to provide as much detail as you have! Could you send me the company info as well? Thank you


    1. Will do @Thomas Enright.  And thank you for the appreciation.  So glad you found it useful.


  45. Hi Larry,

    Thanks for your time and for sharing your experience here. it's very valuable for people who are looking into investing passively in syndication.

    I was reading it anxiously from part 1, hoping that there would be an recent update during COVID, which you marvelously posted.

    Would you mind sharing with me the company details? I would love to check them out.

    Stay safe and thanks again.



    1. Thank you @Iris Cruz for reading and commenting.  I will certainly DM you that info.  Have a safe and sane July 4th weekend.


  46. Thank you for your detailed analysis, Larry! Very informative. Would you be able to pm me the company name aswell?


    1. Will do @Miguel Velez! Thank you for reading my articles.


  47. Thanks for information! Would you please send me the info of this company?


    1. Sure @Brett Burana! I just PM'd you! Thanks for reading.


  48. @Larry Fried. Thanks for the  great  details. Wold you please send me the info of this company?


    1. You bet @Sam Askar. Check your Inbox.


  49. This company sounds perfect for a busy professional who's seeking to diversify their investments. Thanks for posting about it, Larry. Could you send me the company name and details?


    1. You bet, @Jason Ma!  Look for that name in your Inbox.


  50. Thank you for detailed post, Larry! It is very helpful. Would you please message me the company information please.


    1. You are very welcome @Apoorv Reddy.  Thank you for reading.  Look for that info in your InBox shortly.


  51. Larry,  enjoyed your blog, thank you for writing in such detail, so informative!  I would also like the company name.  Thank you, Tanya


    1. You are welcome, Tanya!  However, you don't seem to have a BP account, so I have no way of sending you a message with that info!


  52. Hi Larry,

    I just read through your very informative post on your investment and I would also appreciate the name of the company. We are already connected on BP as you helped me out with another investment idea a couple of years ago.

    Thank you,

    Michelle Y.


    1. Hi Account Closed Yes, I went ahead and PM'd you that info.  And thanks for reading my articles.


  53. Hi Larry, thank you for posting this. Can you please provide pm me the name of the company. Thank you.


    1. I sure will @Deigo Dollar.  Check your Inbox for my message.


  54. Hi Larry, I've read through parts 1-4 of this case study. Thank you for detailing out your experience. I would be interested to learn the name of the company you are working with. Thanks!


  55. Good evening Larry - I just read all four posts and am curious as to the company name.  I'm in 1031 naming period and I understand some these qualify.  I'm just leaving a demanding commercial property and looking at the crowdfunding/syndication route this time around. 

    Thanks for all the updates. It was nice to see the trends from your first to last post.

    nmj


    1. Thank you @Nidal Jodeh for reading all 4 parts.  I just PM'd you that company info.


  56. @Larry Fried Thank you for being objective and thorough with this analysis! Enjoyed reading all the four parts. Could you share the company name?


    1. You bet @Harikishore Kandula!  I have PM'd you that info.  


  57. @Larry Fried, really like how you stayed objective, rational and open-minded throughout your investments.  Really like how you also compared the how you are doing on the debt and equity investments, and the different levels of issues you had to worry about each type of investment.  Would it be possible to PM me the name of the company?  Hopefully, I could add value to you in some way as well with my analysis of the company.


    1. Thank you @Nav Mehta for reading and the kudos.  I will PM you that info.


  58. Hey, i've just completed all 4 parts. Great work on this thorough and enlightening series. Would you mind messaging me the name of the company so i can do further research? Thanks again. 


    1. Thanks @Larry Lee.  I went ahead and PMd you that info.  


  59. I may have missed it in the article series, but are they now only doing leveraged deals on their equity offerings? As a SD (solo) account investor I'm looking for "cash only" equity offerings. Would gladly accept a pm with company info as well. Thx.


    1. Yes @Arne Weise, the company is now only doing leveraged equity apartment deals.  In fact, they just had an a completed exit on the very first apt deal, which was actually a debt deal (which they don't do anymore).  I was invested in that deal, and still need to write about it, but in short it turned out within their projections for IRR.


  60. Such an interesting series with such a generous amount of information.  Thank you.  Can you PM me the company info?  


  61. Such an interesting series with such a generous amount of information.  Thank you.  Can you PM me the company info?  


    1. Will do @Linda Nico.  Look for it in your Inbox.  And thank you for reading.


  62. Thanks so much for this post! Would you mind PM ing me with the company name as well? I'm very interested in this type of investment and it helps so much to have people that have vetted these companies.


    1. You are most welcome @Amy Pepperney! And thank you for reading.  I PM'd you that info.


  63. Awesome post, can you please PM me the name of the company?

    Thanks


    1. Thank you, Gaurav. You don't seem to have a BP member account, so I have no way of PMing you. Please let me know if you register for an account.


  64. Excellent posts with great detail, I really appreciate your openness.  I'd also like the company name in a PM.  Thank you Larry!


    1. You are very welcome @Jorge Rico. Thank you for reading.  I sent you that info via PM.


  65. This is awesome Larry. Really enjoyed following this series and I am very appreciative of you putting it together with such detail. Would you be able to PM the company name please?


    1. Of course @AJason Tyler.  I just PM'd you that info.


  66. Thanks Larry for the very informative blog. Can you PM me the company name/info as well?

    Best,

    Arthur


    1. Will do @Arthur Polendo!  I am glad you enjoyed the read.


  67. Thanks for this article - interesting read. Would you please PM me the company name and the markets where you invested?


    1. Sure @Bo Lee. I just PM'd you that info.


  68. Larry, thanks for this valuable information. I'm curious how the rest of 2019 has gone and if you have any additional updates. If you don't mind, please PM the name of the company you are working with as I'd love to do a little more research into them. Thanks so much!


    1. Thanks @Ryan Smith.  I PM'd you that info.  BTW, I have posted an update for Q2 2019 yet, because the company did a total revision of the website, and it is still getting populated with the historical and current numbers and info.  That info is now there for all but one of the portfolios, so I hope to write that update soon.  Q2 is the latest info I would have, since they only do distributions quarterly.  Stay tuned.


      1. Excellent! Thanks Larry!


  69. Larry enjoyed your article. Can you send me the name of the company too. Thanks much!


    1. Sure @Sharad Kunnath.  I have PM'd you that info.


  70. Larry, thank you so much for taking the time to put all of this together. You should be paid for this information! This is so helpful, especially for a new person to real estate investing. Would you be willing to PM me the company so I can dig deeper? Thanks again!


    1. Absolutely @Daniel Garlow!  I will PM you that info and thank you for reading.


  71. Thank you for the detailed article  

    Do you have the name of this crowdfunding group? 

    Really enjoyed the article! 

    Thanks

    Blake


    1. Thank you, Blake for reading.  I PM'd you the company info.


  72. Larry, amazed that you've taken the time to write with so much detail on your blog. Thanks so much. VERY informative. I would also like to have the name of the company, if youu don't mind. Thanks


    1. @Paul Dekker Thank you for your appreciation.  I have sent you that info.


      1. May I also please have the company name?  Thanks!


      2. @Thomas Roome Yes indeed.  I PM'd you that info.


  73. congratulations on the endeavor.  detail is exquisite - may I please know the name of this company as well?


    1. Thank you for reading and for the kudos, @Kevin Sander.  I have PM'd you that info.


  74. Hi Larry, 

    I appreciate your detail in these articles. Do you mind PM'ing me the name of the company? Thanks.

    Danielle


    1. Thank you @Danielle Sheridan. I have PM'd you that info.


  75. Hi Larry, Very interesting article. I have been following the article. I like the way you have given the details of the returns on each quarter. Overall you have had a good return and also the different things going on in the market. Would like to know the name of the company and the city or state you have these investments. thanks

    Sri


    1. Thank you @Sri Ram.  I have PM'd you that info.


  76. Larry, thank you, this article was excellent. Will you please send me the company info?

    thanks


    1. Thank you for reading @Kris Kumar!  I sent you that company info via PM. 


  77. Greataarticle.

    Like others,can yyou please share company details.

    thanks

    1. Thank you for reading, Ray!  However I am unable to send you the info, because you don't seem to have an account with BP!  Once established, let me know, and I can send the info then.


  78. hi, this was a great read. Could you PM me the name?


    1. You bet @Sokthirith Khen I sent you a PM, and thanks for reading.


      1. could you please PM me the name of this company?


      2. You bet @Jordan Schlinger.  In fact, done!


  79. Great information here with so much detail. I've been very interested in passive income as my job is so many hours a week which is great for saving money though. I know many have asked but if you don't mind PM me the info for this crowdfunding site, that would be great!


    1. Of course @Mario Hoffmaister . I have PM'd you that info.


    2. Thank you for documenting and posting your experience with crowdfunding site. It was very interesting and informative. Can you send me the name of this company? Thank you!


      1. You are very welcome, Darrell.  I am always glad to hear what I write is valuable to readers.  I sent you that info in a PM.


  80. Thanks for that very detailed account of your journey thus far with this type of investing. I am currently looking for a similiar type of investing. Could you please pm me with the name of the company you have been working with?    


    1. Thank you for reading, @Liz Baker I will PM you that info.


  81. Hi Larry, I've read through parts 1-4 of this case study. Thank you for detailing out your experience thus far. Like most others here, I would be interested to learn the name of the company you are working with. Best Regards.


    1. Sure Issac, I went ahead and PMd you that info.  


  82. Thanks for sharing a detailed account of your experience. Very informative. Can you PM the name of this company?


    1. You bet @Richard Heilman!  I sent you that info, and thanks for reading.


  83. Thank you for this very informative series!  Could you PM me the name of the company?  Thanks so much!


    1. You bet, Lauren. Sent!


  84. Hi Larry,

    This was a great read. Would you mind sending me over the company's info? I would like to dig in a bit more. 


    1. Will do @Todd C.


      1. Please send the info of the company to me as well Larry. Thank you so much!


      2. Done @Joey Zee !  And thank you for reading.


  85. This article is a great find, so thank you for sharing.  Would you please send me more information or name of the crowdfunding group?


    1. Thanks for reading, Julian.  I will PM that info.


  86. Great article and documentation.  Thanks for sharing.  Can you please PM me the company info.  Thank you so much.


    1. Sure Angela.  I just sent you a PM with that info.


  87. Hi Larry,

    I'm glad I was able to stumble upon this thread and your comprehensive write up of your experiences with the different portfolios. Like others on this thread, if you can PM me the name of the company, I'd greatly appreciate it!


    1. Will do, Chris.  Thank you for reading.


  88. Appreciate the in-depth write up!  Larry, could you pm me the company info?

    Much appreciated,

    Brenda Henry


    1. You bet, Brenda! I sent you a PM.


  89. Hey Larry,

    I have read all your updates and thanks for sharing these informative posts with us. Can you please message me with the company name? Thanks!


    1. Thank you for reading @Amit Yadav! I will PM you that info!


      1. Thank you so much for sharing this information and as a total biginer who’s trying to contact some turnkey companies, I’d appreciate if you could PM the name of the company and contact information please? Thanks a lot!

        Clarence


  90. @Larry F.

    Hello, 

    A great 4part article. Thanks for the detailed report. Looking forward to the 4th quarter update next month. In the meantime, can you please send me a PM with the name and contact info for this crowdfunding group? Will be much obliged.

    Merry Christmas and wishing you A Very Happy New Year!


    1. Thank you, @Raja Panyala!  I have PM'd you that info.  And Happy Holidays to you as well!


  91. Hello Larry,

    Thank you for your generously sharing your experience , this is very helpful.   Could you please PM me the name of the company?

    Kind regards

    Jiten


    1. You bet, @Jiten Voralia.  I sent you a PM with that info.


  92. Hello Larry,

    Thank you for your thorough analysis, very intriguing. Could you please PM me the name of the company?


    1. Yes, you bet @Joel Fetherlin.  I have sent you a PM with that info.


  93. Thank you for this detailed analysis. I'm also very interested in which company you're working with. Can you please PM me? I appreciate it!


    1. Will do @Melissa S.


  94. Hey Larry,

    I have read all your updates and I am also looking at passive income streams. Can you please message me with the company name? Thanks!


    1. You bet @Evelyn Rojas.  I will PM you that info.


  95. Interesting series of articles. Thank you for sharing! Why is the name of the company not mentioned? I see a lot of people asking for a PM with that info. Why is that? Why not just have that info in the article? 


    1. @Dustin LewisI see you are new to BP.  The short answer for not mentioning the company name have to do with both rules guiding BP blog articles and SEC rules for this type of crowdfunding.


  96. @Larry F.

    Thanks for all of your write-ups!
    Could you PM me the name of the company?


    1. You are very welcome @Tomer O. I have sent you a PM with that info.


  97. Hi Larry, thank you for taking the time to log the journey of your investment with this company. I read through all the 4 parts and enjoyed all the details and experience you've shared. It seems that you've done your due diligence and are happy with the company performance. I have been searching as well lately to get a reputable company to invest. I heard about Cardone Capital, Origin Investments, etc, but have difficulties to get a real investor who vouched with their own experiences by investing to the company.

    Would you please PM me the company name? I will also request a Connection with you. Thank you so much for your share. Peace.


    1. Thank you, @Agus Hartono.  I accepted your request, and provided that info.


  98. I appreciate the detailed writeups--could you please send me the name of the company? Thanks!


    1. Sure @Kelly A. I sent you a PM with that info.


  99. Hi Larry, could you please PM me some detailed info? After reading all of your updates, I am very interested. Thank you!


    1. @Callie Brown Sure, I just PM'd you the company info.  Please let me know if that is what you were looking for.


  100. Hi Larry,

    Thank you for a great write up. Can you send me the company name as well? Thanks in advance.


    1. You bet @Alex A. Done.


  101. HI Larry! Great 4 part article, loved all the updates! It is great to see how the company and the profits have changed over time. Can you PM the name of the company please. I live in Mexico and would like to invest in the US, I see syndication a great tool for me to start in REI without traveling all the time to the US. Thanks again! 


    1. @Rafael Canedo I am glad to hear the articles were of value to you.  I will PM you that info.


  102. Larry, thanks for your 4-part series - hope you continue to issue more - very much appreciated. Regarding the company's disappointing performance for the last quarter.

    "company growing pains. The first was the annual and semi-annual hits on taxes and insurance payments'

    These two items are always givens, right at the top of the balance sheet as debits, and are never surprises or growing pains - they're given constants. Can you clarify how these two items can be unanticipated big hits? Thanks -


    1. Good question @Harry Johnson.  Please note that I was referencing what I was told by one of the co-founders of the company.  As best I understand it, the taxes and insurance weren't being tracked on a monthly basis in their accounting (and money set aside) so they got themselves into some over-extensions on previous quarterly distributions.  They have now changed their method of accounting I am told.


      1. Larry , Thank You for such an amazing and detailed post’s and update. Most detailed I’ve read to date. I have one single family rental, with positive cash flow and have been able to save about $20k, With so much content online and so many companies advertising to invest with them its mind boggling and nerve racking, being a  Husband, father of 4 and a regular 9-5 , I strive to avoid any investing mistakes,  I appreciate your detailed post. Can you dm me company name and do you have any experience investing with or have associates the have invested with Grant Cardone, his presence in social media is huge at the moment and sometimes your mind hear’s something and you want to jump in. Do you have other $ invested with a different company. I’m more interested in the passive income investment where I don’t have to do much , than the fix&flip due to job, family, kids sports etc. thanks for any insight info. 


  103. pm info please. thanks


    1. @Albert ZavurovI sent you a PM with that info.  All best!


  104. Great write up. Can you send me the company name as well? Thanks in advance.


    1. Thank @Izabella W..  I will send you a PM.


  105. Hey can you send me the name of the company as well.


    1. You bet! PM sent!


  106. PM me info also please...Thanks


    1. You bet, Rick. Done!


  107. @Larry F.  Thanks so much for the write-up and consistent updates.

    I also would love a quick PM with the name and info of the firm you invest with.

    Thank you!

    Joel


    1. You bet, @Joel O'Leary. I sent you a PM with that info.


      1. Hi,

        Great article! I would like the name of the company as well! Also, do you have to be an accredited investor to participate?

        Thanks,

        Shea


      2. Shea, the investments with this company are open to non-accredited investors.  I sent you a PM.


  108. Hi Larry,

    Could you PM the name of the firm you work with to me as well?

    Thank you


    1. You bet @Jonathan Lim. Done!


  109. Larry, 

    Great article. I appreciate all the work that went into it. Can you please PM the name of the firm you're working with. 

    Thanks again,

    Ian O.


    1. Hi Ian, thank you for the comment and for reaching out.  It was good to speak with you today as well.  


  110. Larry - thank you for the write up and detailed explanation of what was learned thru the process.  Could you PM the name of the firm to me?

    Thanks, Brady 


    1. You are welcome, @Brady Frederick. I sent you a PM with that info.


  111. Larry, thank you, this had to be a ton of work. Will you please send me the company info? 


    1. You are welcome @Jon Paszkiewicz.  I went ahead and sent you a PM with that info.


  112. Hi Larry, 

         I read all the parts. I appreciate your time and effort in sharing your experience. I enjoyed reading your article and posts.

      If you can PM me the company name and your turnkey investment, lending investment, I will appreciate it. 

     I have self directed 401 k and I want to invest.

    I need professionals like CPA or attorney that are doing the Self Directed 401k if you can send PM of their contact information, if you can recommend a lawyer and CPA. 

    Thanks.

    Florentina 

      


    1. @Florentina Ronquillo Thank you for reading.  I will send you a  PM and colleague request.


  113. Hi Larry, 

    Great posts - very thorough, clear, and intriguing. I would love to know the crowdfunding firm you are working with and look into their opportunities myself. If/when you can, please PM me the contact info. 

    Thanks much,

    Bobby


    1. Thank you @Bobby Coffey for the kudos.  I PM'd you the info.


  114. Many thanks for your time and effort in sharing all this information. Would you be so kind to PM the company info? Thanks again. 


    1. You bet, Ana.  PM sent!


  115. Good write-up! Can you please PM me the company info so that I can research? I would be concerned about safety of my investment should the company go belly up. Thank you.


    1. @Jim Robertson Thank you.  I will PM you that info.  The company as a whole going belly up is certainly a risk factor to take into consideration.  I believe there are a number of elements in place that mitigate that risk.


  116. @Larry F.

    Fantastic write-up. fascinating to spend a few minutes recapping what you've been through over the course of several years, and what you've learned along the way. Could you please message me the contact info for this crowdfunding group? Thanks.


    1. Will do @Dave Lawrence! And thank you for reading.


  117. Hi Larry. Thank you for taking the time to post this series of articles. Your efforts towards continuous due diligence is priceless, especially for someone like me who is new to real estate investing. Can you PM me the company information?

    Thank you, Charles.


    1. Thank you @Charles Steinmetz for reading.  I went ahead and sent you a PM of that info.


  118. Hi Larry! Thank you for posting about this. Would you be able to PM the company name? This is very appealing to me.


    1. @Richard Anderson I sent you a PM.  Thanks for reading.


  119. @Larry F. , This is an incredibly open and honest series of articles on passive investment opportunities and their performance.

    Instead of requesting you to PM me the info on this company what I would request is your thoughts for someone starting to look at passive RE to actually identify similar companies and some details on conducting DD.


    1. @Sandeep Anand Thank you for reading and for the kudos.  That's a pretty big ask, but in brief please keep in mind that early on I identified this company as quite unique in many ways.  So identifying "similar companies" would be a challenge from that perspective from the get go. If you are simply talking about other companies that are offering syndicated apt. offerings, there are many of those, although the bulk of them are typically open to accredited investors only. Feel free to PM if you have more specific questions.


  120. Excellent information!  Thanks for sharing.


    1. Your welcome, Leah.  Thank you for reading.


  121. Thank you Larry for sharing your experience with this!  I have a multitude of passive real estate investments.  Nothing in SFR, but I do in retail, multi-family, office, industrial, etc.  I'm always looking for quality opportunities.  

    Could you PLEASE PM me with the name/details of this particular investment group?

    Thanks again!

    - Brian


    1. You bet @Brian Worden.  I PM'd you that info.  Thank you for reading.


  122. Thanks for all the great incite Larry...can you PM me the name of this investment group? 

    Thanks,

    Anthony


    1. Thank you @Anthony Hay. I sent you a PM.


      1. @Larry F. Could you please also PM me the name of the company you went with?

        Thanks,

        Kevin


      2. @Kevin Coggins I PM'd you that info.


  123. Hi Larry, 

    Great series. All 4 parts were informative and interesting. I appreciated reading about your understanding/education/perspective during the different phases of your investing. Also, so interesting to read about the different ways investing is structured within these companies. I'm considering this sort of crowdfunding investing, would you mind sending me the company name through a PM, please? Thanks again for this series. - Elizabeth 


    1. @Elizabeth Yoshida I am so glad you found these articles informative and enjoyable.  I have sent you a PM with that info.


  124. @Larry Fried I appreciate this four-part series.  I am interested in reading more about this company - could you please PM me their name?  Thank you for providing so much information and analysis.


    1. @Steve O'Keefe Thank you for making your way through all four parts.  I sent you a PM with the info you requested.


      1. Thank you!


      2. can you PM me also please.  Thanks!


      3. Will do @Mike Verna!


  125. Larry 

    That’s an awesome deligent work you did there. Can you PM me the company name as well.

    Thank you

    Awais 


  126. @Larry Fried, Love the four part series tracking your portfolio performance.  Could you please DM the company name to me please?  I am very interested in following this type of strategy because of my current job and the travel required.


    1. @Tyler Kaye I am really glad you enjoyed my articles so much.  I have PM'd you the info you requested.


  127. Great post Larry, thanks for sharing your experience.  Could you please DM me the info on the company you invested with?  Or you can email me at [email protected]

    Keep the stories coming!

    Jerry


    1. Thank you, @Jerry Limber for reading.  I went ahead and PM'd you that info.  


  128. Hi Lary, thanks for the four-part series. They're incredibly well written! I'm interested in learning more about this specific group, would you mind sending me a PM with additional info?
    Thank you.


    1. @Samantha W. Thank you for the kudos.  I am glad you found them useful.  I have sent you a PM with that info.


  129. Hi Larry--thanks for the time you put into a 4 part review.  Your writing and explanations are very clear!  I am a fellow Eugenian contemplating entering the world of REI.  I have gone from the idea of buying rentals for cash flow but am concerned that Eugene is not the best market for that (but what do I know, newbie that I am).  I would appreciate your thoughts on this as well as the the name of the CF real estate company you have been writing about.


  130. @Larry Fried Than kyou for the article! Can you please share the company name? Do i need to be accredited investor?


    1. Oh, and I sent you a PM.


    2. @Soomin Kim You are welcome, and thank you for reading. No you do not need to be an accredited investor. Thus far the company's offerings have all allowed for up to 35 non-accredited investors in each of their portfolios. 


  131. @Larry Fried  Thanks so much for sharing your experience in this excellent article! I have been searching for a relatively passive RE investment strategy to get into and found this very helpful. Would you be able to share with me the name and information of this crowdfunding company? 


    1. You are very welcome, @Rhesa Nathanael.  I appreciate your reading and the kudos.  I have sent you a PM/colleague request.


  132. Larry,

    Loved the documentation of your investment and as most interested in who you are working with....can you PM me the name....

    Congrats on your passive investment.....


    1. You bet, @Chris Welch!  I will send you a PM!


  133. @Rudy Ramirez Thank you for reading. I am glad they were helpful to you.  I sent you a PM with that info.


  134. Great read as always @Larry Fried, we all appreciate your level of candor in sharing your portfolio activity, as well as your attention to detail. I find your Holy Grail series especially helpful in keeping up to date with the present returns available in the market. Thanks again for keeping us all in the loop!


    1. I thank you for your kudos, Keith. I am delighted you are finding them helpful in specific ways I didn't even think of.


  135. Thanks for sharing your experiences with this crowdfunding platform! Please PM me with the company name and contact information.  Angie


    1. Hi Angela,

      I got your email and replied to that with the info you requested.


  136. Very interesting and informative write-up, Larry, especially for those who have invested with this company.  I appreciate how well you compare and contrast the previous offerings with the current ones. It's an interesting metamorphosis and one that seems to indicate an ability to change strategy as the market changes - likely the sign of an astute and flexible management team.  Good qualities indeed!


    1. Exactly!  Thank you, Chris.


      1. Thank you for your detailed and informative series of articles. Can you PM the name and contact info for this crowdfunding group. Thanks again. I look forward to reading more of your articles in the future.