Self Storage Investment - 16% IRR Net Return after Slow Start

In my recent blog post about Realty Mogul, I mentioned that a Mini Storage was under contract.  It did close on Nov 6.  The sale price was about $600k higher than the purchase price.  The 18 month hold will result in a 16.4% IRR.  The estimated IRR on the 10 year hold of this facility was 16.29%.  While the investment was not performing up to expectations during its first 12 months, Realty Moguls management team put enough pressure for its investors to not only exit the deal with the complete return of their principle, but the investors also netted a 16.4% IRR.

It turns out this was Realty Moguls first equity investment that was completed from start to finish. Happy to be a part of Realty Moguls first completed investment and thankful that their team was able to turn around a potentially poor investment. For the month of November, Realty Mogul is giving new accredited investor a $150 Amazon gift card when they successfully complete the investor registration process at RealtyMogul.com

 

David C

Member Since: 2015

Nov 18,2015@06;36 PM

 

I know what you mean, but I like that the investment is diversified across hundreds or even thousands of small business loans with an average default rate of around 5%. I don't like the lending club model either for the reason you stated.

Mark Robertson

Member Since: 2017

Nov 18,2015@02;29 PM

 

I have not researched that fund. However, I am not a big fan of the Lending club or prosper model. I like to have some sort of asset backing the loan. I use patch of Land and Bolstr for my debt investments because they have either real estate or company assets as collateral. If it's a small portion of your investable assets, it may be a good way to get exposure without the hassles of picking individual loans.

David C

Member Since: 2015

Nov 16,2015@09;20 PM

 

Great. Any opinion on their Direct Income Lending Fund? Looks like a good track record so far although only established about 3 years ago. Business model makes sense although I haven't verified the claims that during the last recession the defaults (for loans with the same risk profile?) only went to 10% (currently the default rate is less than 5% if I remember correctly). They say you won't lose principal until defaults go above 20%.

Mark Robertson

Member Since: 2017

Nov 16,2015@11;30 AM

 

Yes I invested in Sliced Investing's long/short fund. It's beaten the S&P by about 4% so far. I've spoken to the founders a few times and they are very sharp.

David C

Member Since: 2015

Nov 11,2015@07;16 PM

 

Thanks for the update on that investment and glad it worked out well. Do you have any experience with SlicedInvesting.com?


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