RealCrowd on Allocation Mix

Paul Kaseburg, Chief Investment Officer at MG Properties Group, shares how he thinks about allocation within the real estate asset class on a recent RealCrowd podcast. He spends a majority of the episode discussing strategies to increase diversification within a real estate investment portfolio.  I found his discussion of vintage diversification as a strategy to mitigate market timing risk particularly interesting.  Individual investors can leverage crowdfunding platforms to implement many of these strategies in their own real estate investments.

RealCrowd is a real estate crowdfunding platform for accredited investors. However, they do have a lot of free learning resources available to the public.

RealCrowd on Hard Money Lending

Broadmark Capital's Adam Fountain shares his insight regarding the role of hard money lending in Real Estate investing in this podcast episode. I found his strategies for mitigating risk particularly interesting.  

While most of us do not have the liquidity of a multi-million dollar fund to make multiple loans at the same time, there are still ways we can use diversification to reduce risk.  One strategy is to invest in a fund like Broadmark Capital. Alternatively, investors can use crowdfunding sites to purchase portions of debt offerings to spread their investment capital out over several loans. 

My personal strategy is to make multiple investments of equal amounts so that the total investment income will be greater than any single investment. For example, if my average return is 10% and my investment unit is $1000, I will make at least 11 investments of $1000 so that my investment income can make up for a failed loan. 

RealCrowd is a real estate crowdfunding platform for accredited investors. However, they do have a lot of free learning resources available to the public.