NYC startup to buy Miami condos at a discount and open to investors
[{"id": "f5tkfpn", "text": "This is not a new idea. This is the same model that residential real estate funds use, except it sounds like this will neither be diversified geographically, nor by asset type.\n\nA 17% IRR would be good but far from unseen in the world of private real estate fund investing.\n\nI don\u2019t see why the company couldn\u2019t generate these returns. I just think this is improperly connoted as a new concept when in reality this is a tried and true investment strategy.", "replies": [{"id": "f5ugpc8", "text": "&gt;I just think this is improperly connoted as a new concept when in reality this is a tried and true investment strategy.\n\nThird paragraph:\n\n*Yorio compared it to Blackstone\u2019s* [*strategy*](https://therealdeal.com/national/2019/05/30/blackstone-sells-1b-stake-in-single-family-rental-business-amid-high-pricing/) *of buying over 10,000 single-family homes that it ultimately took public as Invitation Homes.*", "replies": [], "depth": 2}, {"id": "f5wkk4p", "text": "Totally agree.  I think though they 've built legitimacy and transparency around an investment strategy that wealthy people have been using since condos were invented.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f61dknx", "text": "I don't understand how an accredited investor (1 or 2MM min net worth) can't afford to buy a 450k investment condo on their own rather than buying 45k of shares. Then again, if there's a market for this type of investment god bless.", "replies": [{"id": "f6j3mjl", "text": "What if a person doesn\u2019t want to take on all the work of finding and managing a property themself? Managing real estate investments in distant cities is not something everybody wants to take on themselves.  Small dollar increments allows a person to create portfolio diversification and to spread investments across multiple properties and even multiple cities.", "replies": [], "depth": 2}], "depth": 1}]