All Forum Posts by: Ethan G.
Ethan G. has started 9 posts and replied 345 times.
Post: investment to get monthly income
- Attorney
- Katy, TX
- Posts 397
- Votes 215
I can get you that, are you willing to have a 100% draw down risk? Sorry, just joking around.
Post: investment to get monthly income
- Attorney
- Katy, TX
- Posts 397
- Votes 215
mREITS have all kinds of interest rate and stock market risk. Completely different animal than a private loan with a local operator (who you can easily vet) and a local property (that you can foreclose on and own if you don't get paid back)
it's not the same at all
Originally posted by @Tushar P.:
Publicly traded mREITs in liquid stock market (no barrier to entry, 100% passive) give 10-15% monthly dividend, so it makes sense for the returns from private lending to exceed at least 15%. Not sure if the risk with private lending is higher compared to mREITs...
Post: investment to get monthly income
- Attorney
- Katy, TX
- Posts 397
- Votes 215
Originally posted by @Tushar P.:
@Ethan G. what kind of returns can be achieved via private lending?
12% to 18%. Closer to the former now. Lots of competition now. If done correctly, it's a thing of beauty, very little work, decent return, very little risk. If done improperly, it's not great - one big loss or mistake can wipe out the earnings from many other deals.
Post: investment to get monthly income
- Attorney
- Katy, TX
- Posts 397
- Votes 215
private lending
Post: CPA/Accountant for Real Estate
- Attorney
- Katy, TX
- Posts 397
- Votes 215
Yes, I have one but we aren't allowed to post it so you have to PM.
Post: Help me put my cash to work! (Please)
- Attorney
- Katy, TX
- Posts 397
- Votes 215
I'd argue you should absolutely vet the sponsor and the deal. The crowfunders won't do it properly. If you truly don't have the time and don't care to do the work, invest with a local hard money lender with a good track record instead and accept a slightly lower yield. Way safer.
Post: Help me put my cash to work! (Please)
- Attorney
- Katy, TX
- Posts 397
- Votes 215
There’s tons of crowdfunders. Patch of Land is one. I have had a horrendous experience with them. They all have the same problem - they try to be national, they have no real expertise and their incentive Ian to just place money, they don’t give a crap when they lose your money (and they definitely will)
Post: Wanted to say Thank You! And ask for some Katy "Need To Knows"
- Attorney
- Katy, TX
- Posts 397
- Votes 215
Yes, we did, if you send me your contact info, I can add you to my email list.
Originally posted by @Kristie S.:
@Ethan G. Hey if you guys end up organizing a meet up let me know. My husband and I are looking to get our start in Katy / Cypress, flipping at first. We live out here, in Grand Oaks...
Post: Help me put my cash to work! (Please)
- Attorney
- Katy, TX
- Posts 397
- Votes 215
There are some bigger hard money lenders that will guarantee your investment, even if they pay a lower yield. I'd recommend those instead.
Post: Help me put my cash to work! (Please)
- Attorney
- Katy, TX
- Posts 397
- Votes 215
Hard money lending/private money lending is a good way of going but you have to make sure the deals and the borrowers are both good. I did a lot of it a few years ago and it was how I got started in real estate. I was able to manage it easily while working a super long hours type of job at a big law firm downtown once I found the right couple of folks to lend to. Rates have come down and borrowers are borrowing more money (more risk) these days so I don't make many loans at this point. If you want to learn more, happy to talk to you about it.