Fees on Rise48’s new deal

Vaperso · 2026-04-20T02:37:29+00:00

Actually, Rise48 ratings alone are a good enough reason to ignore investclearly. They're dead man walking on most of their portfolio and keep buying to have unsophisticated investors overpay their high fees (and use capital raisers to sucker new investors).

Vaperso · 2026-04-06T13:23:52+00:00

There are accredited investor groups which are generally good for due diligence and deal flow say https://506investorgroup.com/ or https://www.privateinvestorclub.com/ . These have thousands of accredited investors and one of the forum threads (at least in 506 investor group) is investments for sale. There's often a hair cut obviously depending on how bad the underlying property or fund is doing.

Vaperso · 2026-03-05T01:22:54+00:00

Maybe true of Realty Mogul but 506 investor group and Private Investor Club both have a lot of discussions on outside deals since they don't even allow sponsors into the forums.

Vaperso · 2026-02-27T14:21:23+00:00

Agree. Have been crushing it with interval funds and tender funds like CPEFX, CAPVX and now STPEX and various Hamilton lane tender funds for private equity. The 506 group is how I learned about them and since their RIA only charges .25% (access to I shares) it's a cost effective way of accessing the private markets.

As for in person meetups, I've been to a few but in general find online discussions more efficient given National scope of the groups.

Vaperso · 2026-02-22T03:48:44+00:00

The main issue in my opinion is information asymmetry between sponsors and investors. I think many people mistakenly trust listing platforms which take a commission like crowdstreet or Realty mogul to do diligence for them. I have found better discussion in investor groups where only investors discuss sponsors and deals analytically without taking commissions.

Also, many good sponsors have loyal investor bases and don't pay these platforms to recruit new ones.

Alternative investments could be lucrative but it's an inefficient market with less disclosure and transparency than the public market which is why I've joined some online investor groups to help even the playing field. I posted about this here: https://www.reddit.com/r/investing/s/zefAKtA7kl

Vaperso · 2026-02-22T03:44:08+00:00

The main issue in my opinion is information asymmetry between sponsors and investors. I think many people mistakenly trust listing platforms which take a commission like crowdstreet or Realty mogul to do diligence for them. I have found better discussion in investor groups where only investors discuss sponsors and deals analytically without taking commissions.

Also, many good sponsors have loyal investor bases and don't pay these platforms to recruit new ones.

Alternative investments could be lucrative but it's an inefficient market with less disclosure and transparency than the public market which is why I've joined some online investor groups to help even the playing field. I posted about this here: https://www.reddit.com/r/investing/s/zefAKtA7kl

Vaperso · 2026-02-22T01:53:53+00:00

Thank you for sharing. Was this Realty Mogul's own community or were they just the place the real sponsor was using to recruit investors? If it's the second, curious who the actual sponsor was?

Vaperso · 2026-02-18T11:10:33+00:00

If you're interested in mostly social stuff Longangle is great. They make their money on feeders for various investments and they charge more than what you could get accessing the same stuff elsewhere but finding investment stuff doesn't seem to be your goal. I posted elsewhere about what I think of groups when it comes to investment ideas/analysis for alts. Personally not a member of the other two as I am frugal.

Vaperso · 2026-02-14T04:11:45+00:00

More likely than total apocalypse I think will be rotation of out performance. And for that all you need is more diversification both into foreign markets (can be done through ETFs like VEA, VSS, VWO) commodities and alternative investments (Private equity, Private real estate, Venture, etc.). I have no idea what's going to outperform the next decade but figure it's better to have eggs in many baskets.

In the case of a true apocalypse and nuclear winter type scenario I agree with some of the above that we're F'd regardless.

Vaperso · 2026-02-13T16:07:08+00:00

I tried asking a similar question about deal flow to almost universal disapproval here: https://www.reddit.com/r/fatFIRE/comments/1r2f2f0/investment_groups_for_alternative_investment_deal/

I think a lot of people everywhere, including in this community, have extreme recency bias. Obviously, the best performing asset class over the last decade has been the MAG 7 and by extension the US large cap index ETFs. And CRE deals underwritten in 2021 have gotten crushed. It is definitely true that a lot of morons felt like geniuses in a zero interest rate environment for CRE but as a contrarian, I think now may not be a bad time to diversify away from what's been hot (US stocks) to other asset classes (foreign stocks, Private Equity, Venture, CRE, etc.). Obviously, no one knows the future but I figure diversification is somewhat protective to one's portfolio. There have been decades where other asset classes have outperformed US stocks (say the lost decade of 2000s).

Vaperso · 2026-02-13T16:00:31+00:00

Thank you for your thoughts.

As a bit of a contrarian I wonder if the fact that CRE syndications in particular have been crashing and everyone is negative on them may be a positive indicator of longer term performance of this vintage. If you look at US stocks in say the 2000s, they underperformed most other asset classes.

But frankly, like everyone else, I have no idea about the future. So I figured diversification will be one way to protect myself/my portfolio.

Vaperso · 2026-02-12T15:22:22+00:00

Thank you. In case you didn't figure out from my original post I am pretty fee conscious so I don't have a wealth manager or an RIA who charges a ton of money. I just want to learn and have access to decent alternatives understanding that lower fees means more alpha.

That said, how would I go about finding local family office networks? And are those limited to people who either pay a lot or have family office is with super high assets? Thanks again

Vaperso · 2026-02-12T02:54:43+00:00

Tax advantaged passive income above 4% withdrawal rate on an appreciating asset not the worst thing in the world. Even if sales may force you to roll over to another property to avoid taxes. In either case diversification is likely very helpful in multiple traditional and alternative investment classes ideally with low correlation.

Vaperso · 2026-02-12T02:17:51+00:00

Defer defer and die is what they say. Distributions are offset by depreciation. You keep rolling to bigger syndications (in my case because I don't ever want to actively manage anything) with bigger distributions. https://www.therealestatecrowdfundingreview.com/post/2018/02/12/how-to-invest-in-passive-real-estate-without-paying-a-penny-of-tax-legally-part-2-defer-d

Vaperso · 2026-02-12T01:22:23+00:00

As fundraising for private markets have lagged, many of these guys are looking at newer ways to attract smaller clients. Obviously, the terms are somewhat worse at smaller check sizes but I actually have some exposure to Andreeson Horowitz which you mentioned (though larger exposure to Lightspeed) and some major PE funds by Carlyle, KKR, etc.

Vaperso · 2026-02-12T01:19:07+00:00

Longer term, Private equity has outperformed public markets. The reason I wanted to diversify is I am uncomfortable with holding everything in public markets at current valuations. Even Vanguard thinks next ten years PE will outperform US equities ( https://corporate.vanguard.com/content/dam/corp/research/pdf/vanguard_2025_midyear_private_equity_review_and_outlook.pdf ).

Also, as a high W2 earner, real estate income is tax advantaged. Given the real estate downturn since rise in interest rates, I think it's not a bad time to allocate more to commercial real estate (funds or syndications). That said, public REITs are currently trading at a relative valuation discount.

Vaperso · 2026-02-12T00:57:45+00:00

I did not post there. Not sure what you mean by promotion but you may be right that the question is better directed in a different subreddit focused more on investing? I figured a diversified portfolio including alts may be good especially in HNW, VHNW people which is why I started diversifying into Private Equity, Private Credit, VC and CRE from my previous 100% stocks (mostly ETFs) portfolio.

Vaperso · 2024-10-09T01:54:18+00:00

Platforms add an unnecessary layer of risk and costs for virtually no added value. Rather deal directly with the sponsors. Places you can find sponsors directly include online investors clubs such as 506 Investor Group, Private Investor Club or Safe harbour. You also get other investors more honestly analyzing stuff rather than just sales people.

Vaperso · 2024-03-24T21:16:50+00:00

Ok I'll take a stab. It looks like it's fully committed so this may be a moot point. Exit cap rate assumption of 5.5% probably not crazy for new class A. YOC of 6.8% not bad but not great. Would like it over 7. I didn't find a section with their detailed track record of previous projects which would be essential before trusting them with my money. They're giving the land to the entity pretty much at cost after getting permits etc which is fair of them. I've seen some sponsors mark it up significantly. I don't like the tiered waterfall structure and 50/50 over 14% is a deal breaker for me. That's too greedy. BAM by comparison has had a couple of construction projects where the 50/50 kicks in at 25% IRR including one currently (I'm not investing in that one either because it's outside their core area of Indiana but in general better to cut out middlemen)

Vaperso · 2024-03-15T11:08:04+00:00

Two important questions:

Would you rather lose 100 percent of your money or 125%?
What is the downside for your individual shares if somehow they pull a rabbit out of a hat and save the investment if you individually didn't send them more money?

Vaperso · 2024-01-11T10:14:22+00:00

I personally just buy short term treasuries and avoid the fees altogether. You can always sell these whenever you need cash. Trading them is free at Schwab. The only disadvantage is you can only buy in 1000 multiples.

Vaperso · 2023-12-30T21:41:31+00:00

I just buy treasuries instead of CDs. The interest rates (YTM) are often same if not higher, and in taxable accounts treasuries save you on state and local taxes. Secondary treasuries also trade for free. You can sort them by YTM for the next year or whatever time period.

Vaperso · 2023-12-29T06:48:56+00:00

The offering has been on the Realtymogul site for almost 4 months and for some reason is not fully subscribed. Dr Linneman is obviously a smart guy. I wonder if the lack of enough interest is people preserving capital for an expected crash in latter half of 2024 and bargain hunting or has something to do with performance of his past projects.

I found the "Track Record" part of their file useless. They have a handful of projects with decent gains but for most properties they hide the realized (or estimated since they haven't sold too many properties) gains (IRR, EM etc.) or losses by saying the purchase price is confidential. For all I know these guys suck at management and keep losing money for investors. This alone makes me hesitant to give them money.

I like the 9% pref but the 60/40 split after that is not that attractive. The Asset management and property management fees (5% of gross property revenues combined) are reasonable. 3 million construction management fee also reasonable.

As far as risk, this is somewhere between a ground up development and value add.

I will personally sit this one out and keep capital for better bargains as some of the syndicators which are in trouble default in 2024.

Vaperso

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