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"Rich Uncles" platform


saltybit

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I haven't heard from them but took a quick look.

 

Snazzy website. Looks like a private REIT (an alarm bell goes gets warmed up to ring). Almost everywhere I try to go on their website they require me to create an account with the company. That's weird. Now the bell rings.

 

Ok on to the SEC we go to look them up. Yea ok they're a ripoff gang.

 

Their properties earn 7.4% gross rent yield. Gross rent/value of properties. Then there's the advisor.

 

The advisor receives.

1. 3% of the value of property purchases (read your capital) up front

2. 1.2% of property values per year (they list it as 0.1% per month. clever.)

3. 1% of all mortgage financing

4. Maintenance fees: all mentainance costs reinbursed plus 1.5% of gross rents

5. 6% of gross rents for being a leasing agent

6. etc

 

There's probably more fees but I gave up since I got the gist of it. Fees to affiliates in 2016 were almost as much as rent. General and Admin were almost 2x rent. No wonder these uncles are rich, they have all your money.

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