With the recent hack of Equifax and perhaps 50% of all US resident’s personal information exposed, now is a good time to consider a freeze of your credit.  Since most readers of this blog are accredited, we have the most to lose. Marketers would like you to believe that a $50 credit monitoring service is the best course of action.  Why pay someone to tell you have a huge problem after the fact?  Then you have to spend time and money to try and fix this potential horror. A credit freeze can prevent a problem from ever occurring. Over five years ago, I froze my credit with the three largest credit agencies. It helps me sleep at night.  One less thing […]

I made my first crowdfunding debt investment with Patch of Land in March of 2014. Over the next 12 month I made an additional 15 investments on their platform.  My net returns were over 12% in 2014 and they never missed a payment.  A few loans were extended, but I never lost any principle and I made at least the advertised rate.  After a decade of earning less than 1% with CD and money markets, I thought I found the Holy Grail of investments. Over the next few years more debt platforms have popped up and the demand for “hard money” loans increased. This has put a downward pressure on rates and in my opinion a lower quality of sponsor […]

It’s time for my midyear report on the state of my real estate equity crowdfunding and syndication portfolio. This year 3 investments have gone full cycle. A RealtyShares retail in Las Vegas retail parcel sold in February and the 2-year hold netted a 28% IRR.  Also, the Real Crowd O’Donnell Phoenix industrial building project went full cycle in June of this year.  This 18 month hold also generated a 28% IRR. The last investment that went full cycle was iFunding’s Milwaukee fix and flip. This is my fist loss of principle on a deal. Including distributions my loss was 36% or about a -12% IRR. The sales price net of fees came out to a 56% haircut. Luckily, the home […]

There has been a lot of growth and changes at the 506 Investor Group. This is our private investor group that confidentially shares and discusses information on real estate crowdfunding investments.  The biggest news is the combined net worth of the 506 Investor Group members just surpassed the $1 Billion-dollar mark.  We now have over 285 members and the average member net worth is $3.7 million. We are now incorporated and the 506 Investor Group, LLC is part of CrowdDD. LLC. To manage our growth, we are developing a 506 Investor Group web site that should help organize all the valuable crowdsourced resources assemble by the group over the last 2 years. The Groups two-year anniversary is on June 25th. At the […]

Category: Real Estate   Written By: admin 2 Comments

Open Letter to Real Estate Sponsors

This is an open letter to all real estate sponsors.  Investors want better reporting.  Concise, short, informative, and easy to read reports.  Unfortunately, most sponsors do poor job of communicating results with investors. I have over 50 equity crowdfunding investments and the quality of the quarterly reports varies wildly. The poster child for good reporting is Praxis Capital lead by Brian Burke.  They have a one page report with graphs, relevant statistics, and a short write up of the past quarter’s results and commentary. They key features of their report are they inform the investor of the only 3 things investors truly care about. How much is MY distribution? What is the cash on cash return? What is it as a […]

Its Tax time! That dreaded time of the year for everyone, but especially for real estate crowdfunding investors. I’ve competed my own taxes for over 30 years and I’ve used TurboTax for the last 15+ years. After spending a mind-numbing week entering close to 100 K1’s into Turbo Tax and trying to determine which states to file a nonresident return, I have given up.  Next year a cpa will take over this chore.   With less than a week to go, I am missing 4 K1’s. I will have to file an extension. I used to think Turbo Tax was simple to use.  With Stock and bonds, it’s gotten easier. You give Turbo Tax your log in credentials and they […]

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