Our programmers have hit a few snag on changing the focus of CrowdDD 2.0 to evaluating real estate sponsors. Hopefully in a few weeks we will be ready for our re launch.
Meanwhile the private email group for accredited investors I co-founded is hitting on all cylinders and realizing the potential of crowd sourced due diligence. After steady growth the group seems to have hit critical mass.
t seems size does matter after all.....
As the group has grown so has the capital invested per deal. Our members invested over $2 million in one deal and $1 million in another. Some of the sponsors have taken notice and offered to reduce fees or drop minimum investment criteria to invest in certain investment classes. So what we perceive as a good deal gets even better. Capitalism at its finest. Good sponsors fund quickly and investors find good deals with better terms
Our group invested over $2 million in a mobil home park fund and they retroactively gave all group investors the best terms offered to any investor. Another fund we are investigating offered to waive certain fees if the group hit certain investment thresholds. The crowd can have influence and power after all.
Here are some of my latest ratings on 506c investments: (5 is a no brainer...1, you should run away)
Real Crowd Ames Holiday Inn 4.5 Great location, 25% equity by sponsor, assuming debt (below market rates), high cash flow and another 5% a year in principle pay down. Almost a no brainer except for the added risk of being a motel investment which is riskier than most other RE classes. believe it sold out in less than a day of going public on RC. Our investor group invested about $1 million into it.
Virtua High Growth Fund III
Putting a 4 rating on this fund. 15% preferred return and then a 50/50 split. Unique fund that rescues TIC'S and DST's that have 10 year loans coming due from the bubble of 2007. I am in fund II and pleased to date. A $100 million vulture fund that feeds on the mistakes of DST & TIC investors. One person's pain is another investor's gain.
CrowdSteet Fairfield Inn 3.5 rating. Being in the oil patch brought this down a notch but numbers looked good.
CrowdSteet Courtyard 3 rating. Same location as Fairfield but is underperforming the Fairfield for some reason,