On this episode we talk with Ian Ippolito who runs a real estate crowd funding website which is a valuable resource for those who are interested in this space.
We talk about Ian’s approach to real estate investing.
- Evaluate sponsor first (experience through a full business cycle)
- Lots of sponsors right now have not gone through a downturn
- Look at the deal itself
- Leverage (65% leverage or less)
- Sponsor has invested also (skin in the game)
- What is the deal structure (how does sponsor make money)?
- Locked in long term debt (at low rates)
- Different types of niches in crowdfunded real estate (land, farms, self storage, mobile homes, hotels)
We talk about the difference between public crowdfunding deals vs private network deals.
Finally we discuss where Ian thinks we are in the cycle (physical and financial and he explains the difference between the two)
His blog is at the therealestatecrowdfundingreview.com and is full of useful information you should look at prior to investing with one of the crowd funded companies.explains the difference between the two)
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