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Old 05-23-2010, 04:12 PM
 
1,632 posts, read 3,326,784 times
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Suppose I had saved up a chunk of change and wanted to get involved with a private equity/venture capital/investment group... are there any clubs/groups in Houston that are open to outsiders without millions of dollars?

If so, how much would you need? I'm not talking about an equity group like KKR or Goldman, but maybe a group of people who want to pool funds and buy an apartment complex, a small chain of restaurants, land for development, a tree farm, etc...
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Old 05-23-2010, 06:03 PM
JL
 
8,522 posts, read 14,535,626 times
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Quote:
Originally Posted by Texascrude View Post
Suppose I had saved up a chunk of change and wanted to get involved with a private equity/venture capital/investment group... are there any clubs/groups in Houston that are open to outsiders without millions of dollars?

If so, how much would you need? I'm not talking about an equity group like KKR or Goldman, but maybe a group of people who want to pool funds and buy an apartment complex, a small chain of restaurants, land for development, a tree farm, etc...
I know there are ones like Amway, Vector, etc. They would love to have your $ .
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Old 05-24-2010, 06:04 AM
 
Location: Spring, TX
460 posts, read 2,427,392 times
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You might consider asking for suggestions from the Boglehead's forum

Bogleheads Investing Advice and Info
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Old 05-24-2010, 10:22 AM
 
Location: Pearland, TX
3,333 posts, read 9,173,790 times
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Quote:
Originally Posted by Texascrude View Post
Suppose I had saved up a chunk of change and wanted to get involved with a private equity/venture capital/investment group... are there any clubs/groups in Houston that are open to outsiders without millions of dollars?

If so, how much would you need? I'm not talking about an equity group like KKR or Goldman, but maybe a group of people who want to pool funds and buy an apartment complex, a small chain of restaurants, land for development, a tree farm, etc...
If you have venture capital (generally requires 30% return hurdle), then you better steer clear of apartments, restaurants, raw land and tree farms.

Just sayin'...

Ronnie
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Old 05-24-2010, 12:48 PM
 
Location: Pearland
799 posts, read 2,441,458 times
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I can see that ending 1000 ways badly, and possibly one way well.

Too many chiefs, not enough indians.
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Old 05-24-2010, 04:03 PM
 
497 posts, read 1,485,564 times
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I know of a couple of hedge funds that are investing in commercial real estate - but they are not based in Houston. I'm not sure what their minimums are for investors - I don't have that kind of cash. But I'm looking into them to work as a broker.

They only do large deals (one has a $4 million minimum). They will buy most any type of income producing property and buy on current numbers - never a pro forma.

Personally a hedge fund would make me nervous - I want more control over my dollars, i.e., I don't trust someone else to "manage" them. Real estate is where all the big money is going right now and there are several ways to invest with minimal risk and excellent returns. PM me if you would like more info. I'm not selling anything. Well, I do sell notes but you would want to study for several months before you started buying them. :-)

Recommend you join this group - we meet regularly, are a non-profit, are very large, and have been around for 30 years: The Realty Investment Club of Houston
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Old 05-24-2010, 10:05 PM
 
12,671 posts, read 23,806,411 times
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What about Stocks?
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Old 05-24-2010, 11:32 PM
 
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I got out at 12800 around 3 years ago. The federal government is in chaos right now with significant new regulations coming out weekly - and I'm talking about real estate, IRS rules, financial 'reform' - many areas. These are not well thought out and are leading to serious market (I'm talking about the economy as a whole here) distortions and huge wealth transfers. Until things settle down and issues like cap and trade get finalized I would suggest that only professional traders should be in stocks. Normally, you could buy low and hold. I think the market now is both overpriced and vulnerable to a huge down draft.

With real estate at present you can take advantage of these wealth transfers with minimal risk. Stocks? Dangerous. The country is very divided politically and culturally and I don't see that improving for some time. That makes for a very difficult business environment. Another reason to have something tangible like property backing up your investments.
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Old 05-24-2010, 11:40 PM
 
497 posts, read 1,485,564 times
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Quote:
Originally Posted by HoustonRonnie View Post
If you have venture capital (generally requires 30% return hurdle), then you better steer clear of apartments, restaurants, raw land and tree farms.

Just sayin'...

Ronnie
I agree regarding the restaurants and raw land. Tree farms and apartments that are both very large and can be purchased at a price that can be easily supported by current cash flow can be viable - with professional management. A tremendous wave of commercial foreclosures is just starting up. There will be more bargains available than buyers. Now is one of the best times ever to have cash - combined with knowledge.
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Old 05-25-2010, 05:16 PM
 
12,671 posts, read 23,806,411 times
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Any Stocks investments club?
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