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by 7Figures2Commas
4718 days ago
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1. In a REIT, you have an ownership stake in a company that owns real estate. In a RealCrowd LLC, you have an ownership stake in a company that owns real estate. The number of properties owned by the company may differ, but that's no justification for implying that there's a real structural difference in what the investor actually owns. 2. Every REIT will tell you the same thing about their managers. 3. I'm not sure that's solving anything. You're asking your investors to perform the same function as experienced professionals who get paid to manage real estate investments. Might some of your investors do well with this approach? Sure, but there are plenty of individual traders who handily beat hedge fund managers too (not hard these days). But that doesn't mean it's a good idea for the average investor to become an active trader. 4. The goal is not always to go public and not all non-traded REITs are successful in going public even if they want to, but it should be noted that recent liquidity events for non-traded REITs have generally been boons for the investors. Even so, at the end of the day, unless you're buying and managing property on your own, you should feel confident that the people managing your investment are going to do what's best for your investment or you shouldn't invest. Generally speaking, the more options they have, the better. I could easily argue that a vehicle with no option to entertain a public listing is potentially disadvantaged. 5. Fair enough, but calling shares in a REIT a "financially engineered product" is an odd angle for a company targeting investors who are likely to be more sophisticated than average. REITs are not exotic financial instruments so in my humble opinion, this description is over-the-top and doesn't help your positioning. |
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Our structure provides you the control to choose which assets you invest in, can provide substantially higher cash returns than REIT yields and allows the investor control over where they put their money.
In addition, our structure requires a substantial amount of money co-invested by the real estate operator so their interests are financially aligned to maximize the value of that asset as well. The better the asset performs, the better we all do.
-ah