[cdoan]

Has anyone try these kinds of investment, e.g. yieldstreet, crowdstreet?  They look attractive, but I have no experience with those.  Any opinion?  I need to diversify.

[Vâng]

Hi doc,

Giàu nhiều quá củng là 1 cái nhức đầu ha

[cdoan]

It is a nice problem to have.

[Vâng]

It is a nice problem to have.

Dónt be biting your tongue, Doc

[Hoàng Hạc]

Has anyone try these kinds of investment, e.g. yieldstreet, crowdstreet?  They look attractive, but I have no experience with those.  Any opinion?  I need to diversify.

Nếu muốn góp tiền đầu tư chung (crowdfundings) về real estate  thì Realshares hay Fundrise more popular than crowdstreet. Yieldstreet seems to be more diversified but into deals that seem to be riskier.

Mình có thể tin được con số return mà họ post trên their sites không? (8-20% for yieldstreet)

Vài năm trước, Lending  Club claimed their average return was 9-10%, mới đây họ revised it down to 4-6% :-(

Với Dow, Nasdaq, and S&P 500 near all time highs, rất nhiều người đang tìm cách diversify như CDoan, and me too . Về real estate thì ngoài việc đầu tư vào SFH (single family home) or Multi Family investments, thì bây giờ còn có thêm hình thức đầu tư vào private lending which I am seriously looking into. Syndication cũng là một hình thức crowdfunding về real estate

Nếu muốn đầu tư vào mua nhà cho thuê thì bây giờ hơi khó: Một ví dụ là mình mua một căn nhà out of state từ một công ty turn key nào đó rồi cho thuê lại, nếu mua A hay B class property thì return hay còn gọi là cash on cash, hay cap rate bây giờ chỉ là từ 2-5% thôi 

I am looking into private lending opportunities that return a fix annual rate of 9% for a 5-year term. The nice thing about this is the return rate is fix and it is also relatively low risk...

[cdoan]

Yieldstreet does not have many deals and their deals have no issue of being funded. I tried to get in a deal which raised multi millions dollars and it took one minute (literally one minute) to fully fund it.  Yieldstreet does the background check on sponsors, making sure the deals are legitimate.  On the other hand crowdstreet is just a platform to connect sponsors and investors. Just like a dating site, you don’t blame the site if your date turns out to be “fake”.  So it is harder to do any deal on crowdstreet.  You must do your homework. 

We also join a local real estate investors group, kind a joining a country club, to get to know others and deals they have.  The membership is a little pricey, but it opens the door to many real estate deals.  Just being a passive investors, for shorter deal like a year or less, 10% return is the norm.  Longer deal like 5 years or more, the annual return is about 20%.  The group has many experts in many fields: laws, taxes, construction, etc.  so you can have answers to any question you may have.  It is a good idea to join one

[cdoan]

One more note on private lending, you need to hook up with a realtor and/or loan officer.  For some people, because of their shaky work history or credit report, they cannot qualify for any loan from a bank.  With a good down payment, you can loan them as a private lender.  Remember to be the first lien holder.  In case they forfeit the loan, you can take over the property and make more profit.  However this route requires more homework, to make sure the loan is right for the value of the property, go to court, etc. and we simple don’t have time for it.

[Hoàng Hạc]

One more note on private lending, you need to hook up with a realtor and/or loan officer.  For some people, because of their shaky work history or credit report, they cannot qualify for any loan from a bank.  With a good down payment, you can loan them as a private lender.  Remember to be the first lien holder.  In case they forfeit the loan, you can take over the property and make more profit.  However this route requires more homework, to make sure the loan is right for the value of the property, go to court, etc. and we simple don’t have time for it.

You are right about the traditional private lending which requires you to do a lot of work. What I have found is private lending through a middle-man partner company that takes care of all the logistic and legal matters for you. This is truly a passive investment and the borrowers will pay for that middle man company . 9% is pretty decent return nowadays for a truly passive and relatively safe investment.

Here is the company that I am talking about. They have a good FAQ section that explains how they operate:

http://safeguardcapitalpartners.com/faq/

I do not have as deep a pocket like you so paying for a REI club membership is not how I operate. If I see any interesting talk from some big shot in RE world, then I rather pay one time admission fee for his talk rather than paying annual fee for the club.

Bigger pockets is probably the best RE investment site that I go to for RE related resource. You may want to give it a try

[cdoan]

Not an anual fee but one time fee.  There is not one formula for all, so pick and choose what is good for you.  We were approached a few times by realtors and loan officers to fund someone who already have more than 30% for down payment but not qualified for a bank loan.  The agents wanted their cut in the purchase and willing to go out of their ways to close the deal.  Just wanna pass on the experience.  What is not for us may be for someone else.

We are already involved with local real estate investors in local deals, which we can see, walk through and feel, and best of all we know one another.  The return is already above 20%, so we are kinda okay with them, except deals like these are about two or three a year.

[Hoàng Hạc]

20% is awesome!! Next time if you have similar deal and looking for more investors to joint, please let me know. I am an accredited investor, and if the minimum investment amount is not too crazy, I will fore sure joint you. If the deal is something I can NOT walk away but minimum is higher than the cash I have now, I still could do 1031 on some rentals that I have in the Bay Area and other state.. So keep me in mind would yỏu   :face-with-stuck-out-tongue-and-winking-eye4:

Back to the diversification goal, I totally agree with you. Holding the high flying FANG stocks could be nerve racking nowadays . The only one stock that I have now is Apple, the rest are mutual funds and target funds just to be safe ..

[cdoan]

Another deal at yieldstreet got funded today.  They have no problem raising millions of dollars in minutes if not hours. Still skeptical about it though. 

20% deals I have are for inner circle only. It is like I have a deal but do not have enough money to get it, I put some in and ask for the rest. Others put in the money if they think it is good.

[cdoan]

Two to three years later, a friend directed us back to crowdstreet. It is amazing how the platform has grown. We already put in 500k in several deals within less than a month

[SugarBabe]

Two to three years later, a friend directed us back to crowdstreet. It is amazing how the platform has grown. We already put in 500k in several deals within less than a month