All Forum Posts by: John Fortes

Finding out exactly what the sponsors role is on a project is critical to passive investors. 

Congrats on the decision to scale and move forward through partnerships. In the future, try not to broadcast the amount of funds you have available. Not that I've come across anyone on this site but you don't want to attract the wrong kind of individuals. Vet them accordingly and trust your gut. Good luck and I hope you find the right partner. 

My guy @Dave Van Horn could provide great insight on this as he did write the book on note investing!

Pending on the structure of the deal, once the capital is returned your returns could go from 80/20 return split to 50/50 return split in a waterfall structure. Or in some cases as well, the returns stay on that original split once the capital is returned. Each sponsor sets it up differently. 

I agree with @Ned Carey per the high risk = high potential return. This is where you are thoroughly vetting deals either via sponsors or where ever you decide to source them and see if they come as close to or equal to what you are seeking for returns. Looking at these opportunities will set some sort of expectation on what is available in the current market. 

Don't know if this contributes to the conversation but we been contacted by outside vendors to change our payment collection service to them. If we did decide to do this, they would have to work hand in hand with our PM company. Our PM already has a nice system in place so we passed. 

Hello @Matthew McGoldrick!

Depending on how you characterize it, you can do so via these popular tactics listed below.

• Crowdfunding site (accredited and non-accredited) 
• Syndication as a LP
• Lending as hard money to fix and flippers for percentage and/or points on top of the deal for lending
• JV partnership where your partner(s) manage the opportunity but you have a say in management but choose to be hands off.

I'm sure I'm missing one or two more options but these are the most popular versions of passive investing. All depends on what you are looking to do and how you want to go about it. Please feel free to reach out if you want to dive in more. 

Thank you for sharing @Joe Fairless! Love the tips and definitely could and should be rules of thumbs, especially as one tries to scale. Clarity for the sellers intentions are vitally important as for the case you mentioned about building right next door. Knowing ahead of time, you can plan and adjust accordingly. Proper planning is all about the amount of information you can go on at that moment of time. I appreciate you and God bless!

Learn as much as you can about syndications and from there buckle down on the market and the returns you are seeking. Determine if you plan to be a sponsor yourself or looking to be passive. Figure out exactly your goals are first before moving in a direction. As soon as you figure that out, you will then find clarity in where and how to tackle it. 

Have you considered going with a sponsor in syndicated deals outside of crowdfunding? I'm interested going the performing note route myself.