All Forum Posts by: Howard R.

This is a great discussion.  I appreciate the collegial nature of the responses; I was a little worried there would be some hard feelings on one end of the spectrum or the other.  I will heed the advice above and take it slow, with plenty of research.  Not sure that I will ever get over the trust hump, but we'll see. 

Quote from @Darius Ogloza:

Having handled a good number of securities cases, I too have seen a lot of fraud and the one thing that resonates most with me most is that relatively few fraud artists start out that way.  In many cases, it is well meaning and experienced operators who begin by fudging numbers to "make the quarter" with the full intent of making up for the fudge in a subsequent quarter who in no time at all get neck deep in a Ponzi scheme.   In addition to vetting the operator, you have to be able to vet the deal itself.  Some never get over the trust issue.    

Very true re: Ponzis. 

I really appreciate people's suggestions to talk to sponsors.  But the idea of just reaching out to and relying upon random investment advisors -- with no centralized database of prior complaints or performance to rely upon -- is incredibly concerning.  Anyone who has dealt with fraudsters knows that they are best at conveying an air of success and competence.  That's why they are good at what they do.  It is a lot like asking someone if they can tell someone is lying.  Answer: they cannot.  

So, maybe looking at this from a different angle:  is there any database of performance or sponsors that can be checked (like FINRA's BrokerCheck)?

Hi.  I am new to BP (former FatWallet member though!).  I have been investing in RE for ~10 years and hold 5 properties.  They have not been time-intensive, but I'm always interested in smart financial options.  The Google led me to this site from a different question (are there no companies that do all the work that mortgage servicers do without the mortgage part?), but the first forum post I saw was on real estate syndications.

Reading through the various threads on BP gave me a good overview of the concept, but very little information about the process and the risk.  In my other (professional) life, I work for a federal agency and have seen a lot of fraud.  Like, a lot.  And it usually comes in the form of people seeking investments and trusting individuals based on their pitch and purported credentials, which may or may not be honest/legitimate.  So the apparent word of mouth approach to syndications, frankly, raises a lot of questions in my mind.  

I know a ton of folks on BP are big fans of passive investing via syndications.  Can some of you provide some comfort -- or ways to get comfort -- about the approach and, as importantly, the people who are doing the managing?  In other words, how do people get past the trust issue?

Following this topic out of interest.  Since several responses suggest syndications, it may be helpful to the OP (and others) to provide some additional details on how to find good ones.   That said, no desire to hijack this thread -- so I'll let the OP respond.