All Forum Posts by: Brittany Barchalk

@Brittany Barchalk Welcome to bigger pockets! Have you read "the hands off investor" by brian burke yet? That's a great one to learn more about investing passively in syndications. Even though you're not accredited, you can invest in 506(b) syndications as a 'sophisticated' investor. 

Another option is investing in real estate via joint venture deals. You can't technically be completely passive in those, but you can have role that suits your strengths and keep the regulators happy. Just make sure you're chatting with any attorney about it so you don't get in any trouble! 

Another way you could invest passively is to do private lending to people doing active real estate deals, like brrrr's and flips. These operators always need capital and are willing to pay a pretty solid interest rate for the capital! 

Good luck and keep us all updated on your journey!

Brittany,

There are 506B projects out there. you just need to remember per the SEC, 506B offerings allow for only 35 non-accredited spots, so these are limited. Our group has had several multifamily projects open for non-accredited investors in 2022. You just need to be ready to act as there are fewer open spots. 

The operator has the choice to bring their project forward as 506B or 506C. 506C allows them to advertise but to accredited investors only. 506B allows the operator to add friends and family (non-acc), but they cannot advertise.

Glad to chat and share some past projects to give you some guidance. 

Regards,

Joe

There are ways for syndicators to file/structure their deals that allow non-accredited, but "sophisticated" investors to participate; up to 35 sophisticated investors. This is done via private-placement memorandum, not openly marketed, so you have to have a relationship with those syndicators. Are you in any clubs or REI groups that have that type of syndicator that you can meet and get to know?

@Brittany Barchalk

there are various platforms that are syndication-like and I believe don't require accreditation.  Fundrise, Arrived Homes, or even just publicly traded REITs.  

disclaimer: i have a non-trivial amount in Starwood and a couple other REITs.  they pay high dividends.  i haven't invested in anything like Fundrise that isn't publicly traded.

but just curious - as someone starting out, what about this appeals to you?  to me syndication makes the most sense as a diversification strategy.