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Old 05-04-2019, 03:14 AM
 
Location: Henderson, NV
6,644 posts, read 6,732,700 times
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Quote:
Originally Posted by MinivanDriver View Post
Commercial real estate that is managed by a third party.
Bingo. That’s almost everything I own - apartment buildings, senior housing, office complexes, office buildings, and hotels are all passive income. I have absolutely no say in any of them, I just get the income when distributions are made or wait for them to be sold, etc.
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Old 05-06-2019, 06:22 PM
 
6,918 posts, read 3,120,859 times
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Quote:
Originally Posted by JonathanLB View Post
Bingo. That’s almost everything I own - apartment buildings, senior housing, office complexes, office buildings, and hotels are all passive income. I have absolutely no say in any of them, I just get the income when distributions are made or wait for them to be sold, etc.

Yup. We get quarterly dividend checks (Got one this weekend in fact) for literally doing nothing while our equity grows at about 10% a year.
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Old 05-06-2019, 07:43 PM
 
Location: NY/LA
3,930 posts, read 3,204,057 times
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Quote:
Originally Posted by JonathanLB View Post
Bingo. That’s almost everything I own - apartment buildings, senior housing, office complexes, office buildings, and hotels are all passive income. I have absolutely no say in any of them, I just get the income when distributions are made or wait for them to be sold, etc.
Quote:
Originally Posted by MinivanDriver View Post
Yup. We get quarterly dividend checks (Got one this weekend in fact) for literally doing nothing while our equity grows at about 10% a year.
Are these syndication deals or are they funds? Are you guys using an online platform (ex. Crowdstreet, Cadre, etc.), or are these "offline" deals?
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Old 05-06-2019, 08:19 PM
 
6,918 posts, read 3,120,859 times
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Quote:
Originally Posted by Mr. Zero View Post
Are these syndication deals or are they funds? Are you guys using an online platform (ex. Crowdstreet, Cadre, etc.), or are these "offline" deals?

See my remarks earlier in this thread. Most substantial commercial real estate companies are always scrounging for investors in individual properties. We invested with one company that was forming a private REIT that specializes in industrial and distribution properties. Not sexy like shopping malls or Class A office space, but the sector that's exploding right now, given the juggernaut of online shopping. If it goes public in a couple of years, we might be able to retire.
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Old 05-07-2019, 04:00 AM
 
80,244 posts, read 78,594,179 times
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Quote:
Originally Posted by MinivanDriver View Post
Yup. We get quarterly dividend checks (Got one this weekend in fact) for literally doing nothing while our equity grows at about 10% a year.
investors have to be careful that they understand many of these deals . we owned a private reit and they paid great dividends . to bad they sustained them with borrowed money , money that was supposed to fund new properties as well as a return of your own capital... on the outside it looked wonderful ..if you knew how to read the quarterly report it showed quite a bit of money distributed was coming from non business sources .

eventually the reit was sold and taken public at whch time we dumped it .. it is many years later and it still sells per share for less then we paid when it was a private venture ... there thing was hotels .

one of the most profitable investments we owned was a stake in commercial lease rights in manhattan .. we owned a 10% stake in these 50 year lease rights owned by mogul bernard spitzer .. with just 20 years left they were sold to the ashkenizy investment group for 18 million dollars ....these were just the rights to collect the rent , no property ownership at all . it spun off fabulous income and i was sorry to see it get sold but we had no say .

Last edited by mathjak107; 05-07-2019 at 04:11 AM..
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Old 05-07-2019, 08:22 AM
 
6,918 posts, read 3,120,859 times
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Quote:
Originally Posted by mathjak107 View Post
investors have to be careful that they understand many of these deals . we owned a private reit and they paid great dividends . to bad they sustained them with borrowed money , money that was supposed to fund new properties as well as a return of your own capital... on the outside it looked wonderful ..if you knew how to read the quarterly report it showed quite a bit of money distributed was coming from non business sources .

eventually the reit was sold and taken public at whch time we dumped it .. it is many years later and it still sells per share for less then we paid when it was a private venture ... there thing was hotels .

one of the most profitable investments we owned was a stake in commercial lease rights in manhattan .. we owned a 10% stake in these 50 year lease rights owned by mogul bernard spitzer .. with just 20 years left they were sold to the ashkenizy investment group for 18 million dollars ....these were just the rights to collect the rent , no property ownership at all . it spun off fabulous income and i was sorry to see it get sold but we had no say .



Right. This is indeed good advice. My wife is the CFO of a sizable commercial property company, so she knows how to look over financials. There are areas in CRE in which fools play where angels fear to tread. I mean, I saw a retail REIT looking for investors the other day. Not for all the tea in China. Retail has been overbuilt for years. Amazon just collapsed that house of cards. I'm also a bit skeptical of multi-family at this point.
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Old 05-07-2019, 08:53 AM
 
5,973 posts, read 9,369,278 times
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Quote:
Roi is about 13% per year and my initial investment has almost tripled in value in 5 years.
If you bought 5 yrs ago was that near the bottom of the slump? So the numbers might no look so good if you bought today. I'm kind of curious, what percent down payment?

For me, 2-4 plexes have a higher rent/price ratio. But this kind of residential can be labor intensive - or at least not true passive income.
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Old 05-09-2019, 03:35 AM
 
Location: Henderson, NV
6,644 posts, read 6,732,700 times
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Quote:
Originally Posted by Mr. Zero View Post
Are these syndication deals or are they funds? Are you guys using an online platform (ex. Crowdstreet, Cadre, etc.), or are these "offline" deals?
Family business, in my case. The investments are open to any accredited investors at this point but earlier deals were family only, no other ownership. Now with larger projects like hotels and high rise office buildings, these are $100M+ projects so even with solid bank financing you need $30-40M in equity. Investors for projects like that need to be accredited ($200K annual income or $1M+ net worth) but realistically nobody investing is probably worth less than $5-10M because the minimum buy in is around $250-500K, so these are people who can afford to lose that much if things go south but expect a substantial return normally speaking. As with any business, they carry risks, but if you trust the developer and their reputation there can be a lot of money to be made in real estate.

The effective taxation is also usually very low if it exists at all most years because depreciation offsets a lot of the income so even if you’re making money, as far as your tax returns are concerned, you’re not. I see why people go into real estate - my company is a services (B2B) company and I can’t avoid taxes no matter how you cut it, we don’t own anything, we just provide services to businesses so if I made $50K profit, I report $50K. In real estate I may have made $120K but my tax return says I lost $20K. It’s rather beautiful lol.
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Old 01-14-2020, 11:50 PM
 
Location: Illinois USA
438 posts, read 242,988 times
Reputation: 383
Quote:
Originally Posted by Arya Stark View Post
Real Estate Crowdfunding has worked pretty well for me. I invest in Groundfloor and Peer Street. 7 is percent returns.
can you please elaborate on your experience ?


if anyone else has real estate crowd funding experience please share
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Old 01-14-2020, 11:52 PM
 
Location: Illinois USA
438 posts, read 242,988 times
Reputation: 383
patent trolls make a lot of "passive income" not the most morally upright way to make a living
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