Gyroscopic Investing

Kbg wrote: ↑Tue Sep 06, 2022 3:53 pm
Do some Googling and read up on how to pick one. And, there are several reputable places that one can access via online but most of them will also vet you so that they have a sense you understand what you are getting into and have the appropriate financial wealth to participate.

And if they all returned 15-20%, then everyone would be doing this.

Be careful, be informed.

Or buy a REIT or buy the stock "BAM"

jason wrote: ↑Tue Sep 06, 2022 2:50 pm
I have multiple friends and relatives who have invested in private real estate funds (totally passive investment). The way it works, the fund gathers many millions (hundreds of millions, typically) of dollars, buys a plot of land, builds an apartment complex, fills it with tenants, then they sell the building, and then they pay the investors. Some variants of this include buying an existing building and renovating it rather than building a new one. From what I have seen, the expected annual returns on this type of investment are 15% to 20%, and I've known people who did incredibly well, getting these types of returns with these types of funds, even during covid (covid reduced the returns a bit but they still did great). Is anyone aware of a way to invest in these types of funds and also diversify fairly well? I'm paranoid of Ponzi schemes so they would need to to be very well-vetted. I would feel comfortable buying something like this through a broker at a big brokerage firm like Morgan Stanley, etc. because I trust them to mostly be able to weed out scams, but I probably would not do this through one of the investing crowdfunding websites, for example, unless they have an amazing vetting process that I don't know about.

vnatale wrote: ↑Tue Sep 06, 2022 8:32 pm

jason wrote: ↑Tue Sep 06, 2022 2:50 pm I have multiple friends and relatives who have invested in private real estate funds (totally passive investment). The way it works, the fund gathers many millions (hundreds of millions, typically) of dollars, buys a plot of land, builds an apartment complex, fills it with tenants, then they sell the building, and then they pay the investors. Some variants of this include buying an existing building and renovating it rather than building a new one. From what I have seen, the expected annual returns on this type of investment are 15% to 20%, and I've known people who did incredibly well, getting these types of returns with these types of funds, even during covid (covid reduced the returns a bit but they still did great). Is anyone aware of a way to invest in these types of funds and also diversify fairly well? I'm paranoid of Ponzi schemes so they would need to to be very well-vetted. I would feel comfortable buying something like this through a broker at a big brokerage firm like Morgan Stanley, etc. because I trust them to mostly be able to weed out scams, but I probably would not do this through one of the investing crowdfunding websites, for example, unless they have an amazing vetting process that I don't know about.

I asked a friend if he was doing something roughly similar to this. His response:

"Very similar.

one big caveat-we do not invest in any offer that we do not personally know a principle investor and management, and a couple other investors. this limits us considerably, but think there is safety doing that.

Need to be an accredited investor if the offering is not SEC approved.

Accredited investor -income greater than $200,000 each of last two years and anticipated that level going forward OR

net worth excluding primary residence of $1M

sometimes we just need to sign a document stating the above

one investment there was an independent company hired and documents were submitted to show qualifications.

We have been fortunate. two brothers from Atlanta who [X & Y] met in college and law school are involved in management. their father, whom we know, is always the largest investor.

The results of individual investments vary, we are satisfied. No investments last two years because markets are currently crazy price wise.



Investing though a large brokerage firm is fine, there are just more layers of expenses, which reduce return on investment

jason wrote: ↑Wed Sep 07, 2022 9:53 am

vnatale wrote: ↑Tue Sep 06, 2022 8:32 pm

jason wrote: ↑Tue Sep 06, 2022 2:50 pm
I have multiple friends and relatives who have invested in private real estate funds (totally passive investment). The way it works, the fund gathers many millions (hundreds of millions, typically) of dollars, buys a plot of land, builds an apartment complex, fills it with tenants, then they sell the building, and then they pay the investors. Some variants of this include buying an existing building and renovating it rather than building a new one. From what I have seen, the expected annual returns on this type of investment are 15% to 20%, and I've known people who did incredibly well, getting these types of returns with these types of funds, even during covid (covid reduced the returns a bit but they still did great). Is anyone aware of a way to invest in these types of funds and also diversify fairly well? I'm paranoid of Ponzi schemes so they would need to to be very well-vetted. I would feel comfortable buying something like this through a broker at a big brokerage firm like Morgan Stanley, etc. because I trust them to mostly be able to weed out scams, but I probably would not do this through one of the investing crowdfunding websites, for example, unless they have an amazing vetting process that I don't know about.

I asked a friend if he was doing something roughly similar to this. His response:

"Very similar.

one big caveat-we do not invest in any offer that we do not personally know a principle investor and management, and a couple other investors. this limits us considerably, but think there is safety doing that.

Need to be an accredited investor if the offering is not SEC approved.

Accredited investor -income greater than $200,000 each of last two years and anticipated that level going forward OR

net worth excluding primary residence of $1M

sometimes we just need to sign a document stating the above

one investment there was an independent company hired and documents were submitted to show qualifications.

We have been fortunate. two brothers from Atlanta who [X & Y] met in college and law school are involved in management. their father, whom we know, is always the largest investor.

The results of individual investments vary, we are satisfied. No investments last two years because markets are currently crazy price wise.



Investing though a large brokerage firm is fine, there are just more layers of expenses, which reduce return on investment

Thanks. I do qualify for alternative investments. Just not sure how to proceed from here as I don't personally know anyone who runs these types of investments.