[duedue]

I'm surprised I couldn't find a thread on this. Has anybody here invested in this with success? The Financial Samurai can't recommend it enough.

[Bill Brasky]

I've looked into this. Wall Street Playboys have Realtyshares.com in their Approved Products section.

While I would love to get into something like this, thus far I have only found companies that require you to be an accredited investor ($1Million+ in net worth or $250K+ per year).

[True Balla]

(08-24-2017 10:37 PM)True Balla Wrote:  

Well, it definitely seems like this has evolved into a REIT thread. I saw a post earlier on the different types of REIT's, and questions about fee's etc. which all differ depending on the REIT's.

As far as crowdfunding goes, RealtyShares (my fav) is really great, RealtyMogul, CrowdStreet, Fundrise, iFunding, etc. PM if more needed. I actually don't invest with any of these guys, but am on the other end. My has partnered with Realty Shares to raise 3M in Equity in one of our hotels. We've partnered with Realy Mogul to raise millions in Equity as well. We were going to partner with iFunding on a deal, but it fell through and I'm not a fan of them. CrowdStreet may work with soon as they do New Build hotels, where as the other platforms do not. Fundrise would only touch Major markets / NYC deals which wasn't our appeal. NYC hotels went down in value anyway. Anyway, it's a public forum so if more knowledge is needed just PM me. Realty Shares and Realty Mogul are both very very impressive to work with and are very good in how they underwrite their deals. They were strict with us, and it really helped us stay on top of our game.


As far as the original topic, and what I do. I have an Officer position in essentially a Private REIT (SEC 506C offering). We concentrate only on Hotels (which may change in the future) and that is our bread and butter. We have 5 year holding periods, so investments are typically illiquid up to 5 years. We pay out an 8% or so annual return off Hotel Cashflow, and sell at the end of 5 years returning a net total to our investors of 20-30% annual ROI. Historically we've done in excess of 50-100% but obviously we had the 09' to now appreciation behind us for those types of returns. But if any of you are interested in investing privately into Hotels (accredited investors only with 50-100k minimum), feel free to PM me.

Otherwise, REIT's are great. Hotel's wise, they buy nice hotels and pay good money for those hotels. They milk the cash flow and pay it out to investors at about 8% and make their fees. For example, if they manage 5B worth of assets, they can take a 3%(most likely higher) management fee yearly. When its time to renovate the assets, they usually sell off and recycle money into good products.

What my company does is buy hotels in need of a renovation typically. For example, a typical Courtyard by Marriott in need of a new refresh. We buy it at a discount, do all the construction / renovations and stabilize cash flow. At the end of 5 years, we sell for a Premium back to the REIT's, so that they can milk the cash flow for the next 10-15 years to return to their investors and collect their management fees. At the end of the cycle they sell off at a discount back to guys like us.

Figured some of you guys were interested in the back of house knowledge

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[Danile]

probably not any one on roosh is rich enough?