“CROWDFUNDING” REAL ESTATE INVESTMENTS
By: Larry D. Hudson
His activities in business led Rod Yarger to become an “accidental syndicator,” and he told Greater Dayton REIA’s January First Wednesday meeting (1/4/17) he’s been building on the idea ever since.
He was no stronger to real estate investment, even as a child, he told the group. His family owned a few apartment units, and young Rod was tasked with cutting the grass and doing odd jobs, he said.
But later, when he worked in asset management for a corporation, he learned the fundamentals of investing with the power of funding behind him.
“The fund is the fuel,” Yarger told the group.
Crowdfunding varies in form from needs-based campaigns on the internet (for people with business ideas or people who need help with medical bills) to what he called “investment grade funding.”
Today, Yarger is involved with a real estate investment hedge fund that is backed by capital from investors. For the investors, it’s like “owning the bank,” he said.
With adequate capital in hand, the hedge fund is always ready for a good real estate investment purchase, Yarger said. “Our gun is always loaded,” he added.
As a result, hedge fund buyers are always in the hunt for suitable investment purchases – from houses to apartment buildings to large commercial properties.
It may not be for novices, Yarger implied, but real estate hedge funds offer substantial advantages, including favorable tax treatment, for more experienced investors who have substantial funds to invest.
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