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All Forum Posts by: Bobby Shell

Bobby Shell has started 18 posts and replied 152 times.

Post: Wired money to BAM & Open Door Capital

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126
Originally posted by @Ronald Rohde:

Appreciate the open and honest answers! Did you have a lawyer review the docs before signing? Did you have questions? 

 I did not have a lawyer review. I did have questions for the GP's that i reviewed.

Post: Facebook will now let some employees work from anywhere

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126

Our organization with 500 people is now allowing people to work remotely, we also have an open office that allows people to come in when they have the desire allowing full autonomy in terms of where to work. We live in Fort Collins Colorado, so there is less incentive to get out of here, where there is more incentive to get out of SF from what I have heard and learned.

I see there being a long term impact of pay for small/mid companies, but larger companies with VC funding or higher profitability/cash on hand will pay premiums and attract the best talent.

^ while that is purely speculative and may not happen, I see that happening....

Overall I think the markets we have seen grow over the last 5-7 years will continue to have good performance as these workers rebalance across the nation with the newly allowed work from home culture happening.

Post: Multifamily Investing on the Blockchain - has anyone started?

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126
Originally posted by @Evan Polaski:

@Bobby Shell, you have piqued my naiveté.  Besides the smaller investment amount, what are the benefits?  

I always assumed the benefit of blockchain was anonymity with security.  But with that anonymity, are you still able to enjoy tax benefits of most real estate investments?

Please forgive my total lack of understanding of blockchain technology.  But I do appreciate any color you can provide.

That is one misunderstanding, it is not anonymous. The reason why is because you can track the transfer of value sent from one address to the next. (Meaning if you transfer to your bank account which is the on and off-ramp they can tell the original source of funds). It is "pseudo-anonymous" if that makes sense.

The attorney of the company I am considering investing with is going to get a lot more info for everyone as to how it works, etc. These are some of my questions I have been posing to their teams :)

I think most people who invest this way right now has less education overall on how syndications work.

Post: Multifamily Investing on the Blockchain - has anyone started?

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126
Originally posted by @Will Fraser:

Hey @Bobby Shell, I have not invested with any of these yet, but the inner nerd in me in intrigued!  I'm following closely :) 

 What is cool is you can buy fractional shares anywhere from $50-140 for token for instances. Meaning you are not forced to put 50k+ in a deal with increments of 10k.

I am actually going to invest in a few deals with less than $500 and see how they do over the next year. The partner I am looking at focuses in Detroit and section 8 areas. So I love the ability to invest small amounts in more volatile assets. 

THAT SAID... because the money printer goes BRRRRR, I would not be surprised if section 8 does incredibly well because the government will quickly pay those bills with all these UBI talks going on!

Always eager to learn more myself :) Thanks for chiming in!

Post: Multifamily Investing on the Blockchain - has anyone started?

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126

There are providers who allow real estate investing on the blockchain where 50k is not the minimum. you do have to be accredited. I am actually in the process of getting approved. Has anyone else started investing with any of these companies? 

I know their names but don't want this post to get flagged for bringing them up when I have no care whatsoever to advertise for them. 

Cheers!

Post: Wired money to BAM & Open Door Capital

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126

@Daniel McNulty

Amen bro. Thanks for the reply. Praying for our communities and that our officials do the right things

Post: Cash flow = NEGATIVE $2,000 per month

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126

Right now SFH deals are way overpriced. I agree this will not work, and Boulder is not likely to work.

For perspective we just sold a SFH in Fort Collins and we got tons of offers from investors that were 50-75k UNDER current selling prices. You are going to have to lowball a ton of people or buy offmarket deals from desperate sellers.

I would try to find a duplex that you can repair and fix up outside boulder or look out of state.

Post: Wired money to BAM & Open Door Capital

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126
Originally posted by @Daniel McNulty:

@Bobby Shell

I have had numerous convos with BAM / Ivan. I like them a lot and they are well regarded in the community here.

It's an exciting time to put $ to work for sure. I'll be interested to see how this vehicle fairs compared to their others. 

 Thanks for sharing Daniel! I hope the city is safe and things are going well? How have the riots and protestors been in the local news for you? And how are you feeling overall the city is doing over the last week

Post: Wired money to BAM & Open Door Capital

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126
Originally posted by @Account Closed:
Originally posted by @Steve Vaughan:

I can see being attracted to passive fund investing living in an extremely expensive market.  

I can see the advantages of passive investing as a long-time DIY self-manager.

I always wondered about leverage in these.  Say you invest $100k. If I do that in direct ownership RE, I can conceivably purchase $500k worth of RE.  Does your $100k stake translate into more equity because the fund is getting financing? With 9verhead and fees, I wouldn't expect 5:1, but maybe 3 to 1 when your % is figured out?

Commercial financing scares me.  Are your funds using agency debt or are their loans callable and /or expire after a few years?

I understand why you sought these asset classes, but did you find these sponsors superior to others in the same class?  Barrett I believe has been around a while.  Have either of these sponsors weathered a storm or recession before?  

Thank you for any insight and for starting this thread👍

You ask why would someone take $100K and put into a syndicate rather than buy a 500K property. I can think of many reasons

1. No liability or debt other than the investment itself. No need for reserves

2. No need to manage it. Totally passive. The GP provides the expertise.

3. A different asset class. A 200 unit apartment is a different beast than a fourplex.

Of course you give up control and liquidity so vetting the sponsor is the most important thing here which the OP seems to have done.

Agreed 100% -- There are many people that are far smarter than me that said they wish they had done syndication/funds sooner. I also had 1 nightmare property and I do not want to manage homes at all right now when my W2 pays so well and I am likely having a child within the next 1.5 years (Lord willing).

Post: Wired money to BAM & Open Door Capital

Bobby ShellPosted
  • Investor
  • Fort Collins, CO
  • Posts 165
  • Votes 126
Originally posted by @AJ Shepard:

When looking at syndications, are you mainly looking at funds or at projects?  What type do you prefer to work with and why?  

I am not educated enough to be bias towards one. The reason I chose the funds is because those were the two best deals that became available by 2 of the top 6 syndicators I am choosing to partner with based on my 1st year of research.

I am not against a syndication. I am not only about funds either. More concerned with the deal and the GP. I like the idea of the fund right now during economic issues because I want some diversity within different classes in Indianapolis, as well as geographic diversity in the MHP fund