All Forum Posts by: Dennis Boettjer

Michael, why would you invest in UNSECURED note funds when you can buy notes SECURED by real estate that are currently paying 10% for 2 or 3 year interest only terms? I don’t sell anything on BP. I’m just an investor.

@Dennis Boettjer be careful about basing your decision solely on past deal performance. Certainly track record is very important, but track record is so much more than deal performance.

The last decade was a consistent bull market so almost anyone could put some runs on the scoreboard while learning little to nothing.  And when a rising tide is lifting all boats, groups that amplified their results by using risky high leverage could score some massive returns until the music stopped, then will subsequently struggle to keep the rest of their portfolio out of foreclosure. There are a lot of groups out there right now that had made-for-TV track records that will likely not be in business in a couple years.

Focus on the experience of the team, how long they have been in the business, how many market cycles they’ve survived, their philosophy on leverage, and how many properties they bought in 2022/2023 (a good answer would be few, a great answer would be none).

And do yourself a favor and read The Hands-Off Investor (in the BP bookstore) before you invest a single dollar in a syndication.