E356 – How Can You Tell If A Sponsor Is Misleading You?

Like many of you, I’m extremely bullish on the world of private real estate deals.

As people continue to have success investing in the space, it will continue to grow and grow. If this continues, it might be highly favorable for us as early investors. (Yes, we are still VERY early!)

If this happens as I think it might, it’ll likely mean more buyers and sellers in the space (more liquidity), lower exit cap rates, and generally, a more precise marketplace. Of course, it might get a little competitive as well!

However, one thing that can slow that growth is for passive investors to have poor investment experiences.

Sure…

Some deals simply have challenges. That’s the nature of investing in real property which is occupied by real tenants.

But some of the challenges in the space are related to the operators themselves.

So, how can we limit the likelihood of investing in deals with poor operators? 

Today, we are joined by Byran Ellis, who is an experienced real estate operator and who has raised tens of millions of dollars of private equity from investors. Over his decades in the industry, he has developed systems and processes to conduct accurate and efficient due diligence for passive investors.

In this episode, we are going to discuss…

  • Several tips and tricks for how passive investors can “trust but verify” without breaking the bank
  • A wild horror story that could have easily been avoided!
  • How real estate sponsors can create a principle-based business, so that you are never concerned that you are going to be “found out” by your investors

If you are a passive investor who’s looking to increase your level of sophistication, this is an excellent opportunity to learn from one of the best!

Take Control,

Hunter Thompson

Resources mentioned in this podcast:

1. SelfDirected.org

2. His Podcast “Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA’s & Solo 401k’s”

3. His new magazine “Accredited IQ

4. For a free year’s subscription to Accredited IQ text “COMP” to 678-888-4000

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Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.

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