Alternative investments/crowdfunding

Discussion in 'Business, Investing & Finance' started by BMF, Mar 12, 2019.

  1. BMF

    BMF Bad Mother....
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    Thanks to Ox and divits for starting this thread....

    I have a few questions on some financial topics I'd like to discuss w/ some of you, but I first wanted to talk about alternative investments.

    When I say "alternative" I'm talking about non FDIC type products, such as crowd funding.

    About two years ago I opened an account w/ Realtymogul.com - they are a REIT that invests in commercial realty (cliff's notes version). The REIT I'm in returns 8% interest, w/ dividends paid monthly. They do charge a fee, so it's closer to 6% than 8% (total value of the account). The money is locked up for several years, which is the biggest downside .

    I also put money into a few other crowdfunding sites.

    One site that I've been dumping money into lately is called Streetshares.com

    They are a veteran owned company that lends money (primarily) to veteran owned businesses. In late 2018 they partnered with USAA (as USAA does not do small business loans). On the investment side, it returns 5% interest. You can deposit as little as $25 (up to $500K). In February, they did a 2% President's Day bonus on each $2500 invested. You are allowed to take money out without penalty for 2 weeks during the year on your anniversary date of opening your account - otherwise if you take money out there's a 1% penalty. The interest accrues daily. Again, this is not FDIC insured so there is a risk. So far, I'm very happy with this account.

    I also opened a fundrise.com account. Another real estate investment company, returns around 8%-12%. I just got into this after doing a ton of research. When the realtymogul account matures I will probably transfer the entire value into fundrise.
     
  2. Gator By Marriage

    Gator By Marriage A convert to Gatorism
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    If you like REITs, I've been in an I-share ETF mortgage REIT that has done well over the years dividend wise (not so much share price wise). Ticker symbol REM (easy to remember for sure). Been in long enough that it has paid for itself, though the dividends used to be better.
     
    • GatorInGeorgia

      GatorInGeorgia Senior Member
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      BMF, not sure if you’ve seen things like Prosper.com or other peer to peer lending sites but if you’re looking for yield and are willing to take some risk then it may be worth a look. Basically you’re lending money to people that the site has screened and rated to some degree. The more risky the borrower or the reason for the loan, the higher the interest rate you get. The less risky the borrower, the lower the rate. Rates lenders (I.e. you) receive can range from let’s say 5% up to 30+%. If you haven’t heard of this google them or google peer to peer lending and check out the options and see what you think.
       
      • BMF

        BMF Bad Mother....
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        I've seen those sites and have some interest. I've got money spread out right now, I'm waiting for the realtymogul to mature so I can get out of it (it still has several more years). I may try one of these w/ a low amount just to give it a try.

        Here's a couple of good reviews of e-realty crowdfunding sites:

        The Best Crowdfunding Real Estate Investing Sites for 2019

        Crowdfunding Investment Website Reviews
         
        • BMF

          BMF Bad Mother....
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          GBM, I have a few reit's in my regular portfolio's....but I'm specifically talking about the higher risk crowdfunding sites. Just curious if anyone here has experience w/ them and have any recommendations.

          If you're looking for a safe 5% return I strongly recommend streetshares. So far, so good. Great customer service and with the 2% occasional bonuses I'll probably earn 5.5% overall. With the market being a roller coaster right now I'm fine w/ some of my money going into a safer return. Until CD rates climb above 4% it's hard to find a guaranteed 4 to 5%. (and I'm not advocating for putting a big percentage of money into these accounts)
           
          • BMF

            BMF Bad Mother....
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            Update on Streetshares: they are about to be acquired (bought out). I bought some class A shares last year and, if it sells for what they project I'll make a cool 60% return! I put in $50K into their last fundraising round. Of course I'm pulling for them to sell higher. I'll keep you updated.
             
            • FireFoley

              FireFoley Senior Member
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            • oxrageous

              oxrageous It's Good to be King
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              BMF is a smart man.
               
              • BMF

                BMF Bad Mother....
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                Not really! I lost some cash on that yourulz deal! Win some...lose some.
                 
              • FireFoley

                FireFoley Senior Member
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                I lost a lot of money in strip clubs and on hookers over the years, but in the long run always considered it a win b/c it was much cheaper and less aggravating than a wife!
                 
              • oxrageous

                oxrageous It's Good to be King
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                If that were true, do you really think I would call you a smart man? You haven't lost anything, and things couldn't be looking more up.

                PM me if you dare.
                 
              • BMF

                BMF Bad Mother....
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                I've got a buddy that uses a great analogy:

                The best $1 you could ever spend is at a titty bar. Think about it, you could get a bottle of windex or you could get a pair of tits shoved in your face!
                 
                • BMF

                  BMF Bad Mother....
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                  Really? PM is on the way. I haven't heard anything from those guys in a few years, figured it was down the toilet!
                   
                • bradgator2

                  bradgator2 Rioting
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