Need inputs in group investment

[killerspin]

Hello brothers & Kaka’s

Need some suggestion on syndicate investments. Looking at commercial syndicate investment where we got one property with good CAP rate(9%).

only issue is not flexible on exit. It seems bit difficult to exit and take your part. Any downside on these kind of investments? Emanna irukka potaya money?

 

 

[Thokkalee]

Bank lo vesthe 5-6% vastundi kadaa.. why risk for an additional 3-4% return?? 
most of these investments are based on the assumption that they generate enough revenue (without any vacancies) and the property value also increases.. numbers from 1-2 years ago don’t apply in this market with decreasing valuations of properties.. 

[killerspin]

@Thokkalee bank vallu ippudu bagane istunnaru but 2-3 years tarvatha we dont know kada. And property may appreciate. 

[Thokkalee]

9 minutes ago, killerspin said:

@Thokkalee bank vallu ippudu bagane istunnaru but 2-3 years tarvatha we dont know kada. And property may appreciate. 

You can invest for 5 years @5%.. this is if you want to just park the money.. otherwise buy a rental home if you can afford, with a positive cash flow..

Last 1-2 yrs lo real estate valuations baga paddaayi… watch out 

[killerspin]

1 minute ago, Thokkalee said:

You can invest for 5 years @5%.. this is if you want to just park the money.. otherwise buy a rental home if you can afford, with a positive cash flow.

That was done. Dont want buy more rental properties. Its heck of job

[JackSeal]

4 minutes ago, killerspin said:

That was done. Dont want buy more rental properties. Its heck of job

Anni investments chesi malli DB lo investment opinions adguthunnav ante, middle class dbians ne helena cheyadanike kada ?

[killerspin]

5 minutes ago, JackSeal said:

Anni investments chesi malli DB lo investment opinions adguthunnav ante, middle class dbians ne helena cheyadanike kada ?

Adem ledu bro. Nenu bhi middle class ne..ee syndicates loudalo panchayats idea ledu..evari kanna idea vundemo ani

[Genuine11]

Usually any investment principal amount should be guaranteed and should be able to exit if the expected returns are not fulfilled. I don’t recommend if it’s difficult to exit

[Konebhar6]

4 hours ago, killerspin said:

Hello brothers & Kaka’s

Need some suggestion on syndicate investments. Looking at commercial syndicate investment where we got one property with good CAP rate(9%).

only issue is not flexible on exit. It seems bit difficult to exit and take your part. Any downside on these kind of investments? Emanna irukka potaya money?

 

 

Got curious and did some google search. Commercial real estate baga drop ayyindi coz of WFH. It will pick up with Return to office mandate in many places. If these syndicate investments are for commercial real-estate its not a bad option. Start with a small investment. Diversification of investements is always good. 

But residential real estate might be in trouble. See how wide the gap has become. The green line will drop soon. Nothing goes up contineously.

What's the tenure of investment? I mean when can you exit? 

[Konebhar6]

I would still prefer US Equities. More control on when I want to get it and when I Want to exit. 

[rmJU72]

I prefer an investment where I have control on exit. See if that syndicate is worth the hassle when you can just put money in S&P and relax.

[neekunuvvetopu]

9 hours ago, killerspin said:

Hello brothers & Kaka’s

Need some suggestion on syndicate investments. Looking at commercial syndicate investment where we got one property with good CAP rate(9%).

only issue is not flexible on exit. It seems bit difficult to exit and take your part. Any downside on these kind of investments? Emanna irukka potaya money?

 

 

Cap rate high may not be always good bro - again depends on the property type, location etc.  Google it - you will know.

 

https://ibb.co/vmhtWLy

 

 

[killerspin]

7 hours ago, Konebhar6 said:

Got curious and did some google search. Commercial real estate baga drop ayyindi coz of WFH. It will pick up with Return to office mandate in many places. If these syndicate investments are for commercial real-estate its not a bad option. Start with a small investment. Diversification of investements is always good. 

But residential real estate might be in trouble. See how wide the gap has become. The green line will drop soon. Nothing goes up contineously.

What's the tenure of investment? I mean when can you exit? 

Thank you for more insights🙏

[killerspin]

3 hours ago, neekunuvvetopu said:

Cap rate high may not be always good bro - again depends on the property type, location etc.  Google it - you will know.

 

https://ibb.co/vmhtWLy

 

 

Ala generic ga em cheppalemu..CAP rate chala vati meeda depende ayi vuntadi kada..if you get good deal CAP rate will also good

[vkk]

23 hours ago, killerspin said:

Hello brothers & Kaka’s

Need some suggestion on syndicate investments. Looking at commercial syndicate investment where we got one property with good CAP rate(9%).

only issue is not flexible on exit. It seems bit difficult to exit and take your part. Any downside on these kind of investments? Emanna irukka potaya money?

 

 

Speak to other stakeholders  in the syndictae structure and see whether there are any exit plans chalked out or what are the terms and conditions if one wants to check out in few years. One of my acquaintances invested in a to be constructed strip mall. venture wasnt going anywhere. He was able to collect his investment but took quite a bit of effort.