I remember the first time I ever walked into an Anthropologie store, back when I was in college. It was a new store, near Rittenhouse Square in Philadelphia, the flagship store.
As soon as I walked in, I was taken aback by a feeling of coming home. Everything in the store seemed light, airy, and decidedly distinct. Anthropologie caters to women who want to express their creative side, and one of the most fun parts of shopping at Anthropologie is the sense of discovery and wonder.
Anthropologie buyers and designers “travel the world collaborating with talented artisans to bring you a unique selection of women’s clothing, accessories, home decor, beauty, gifts, and more.”
In many ways, this is just like what we do at Goodegg Investments.
We go out and find the best real estate syndication deals on your behalf. We take the time to vet the partners, the deals, and the markets, so by the time an investment opportunity makes its way to your inbox, you can be assured that it’s of a certain caliber, meets our rigorous criteria, and is a deal we would personally invest in ourselves.
In this article, we’ll go behind the scenes and take a closer look at exactly what we do at Goodegg Investments, how it all works, and why you should consider working with us.
In short, we help people invest passively in group real estate investments, also known as syndications. We have two parts to our business: the education side and the investing side.
The education side of Goodegg Investments includes this article you’re reading now, as well as our dozens of other blog posts, videos, online courses, books, and other offerings.
Before we got into this business, we spent hundreds of hours trying to wrap our heads around the “black box” of real estate syndications.
It seemed that all the information available out there was either hard to understand, unreliable, or just not there. We pieced together a basic understanding of how it all works, then took a leap of faith and invested passively ourselves.
Because we went through that experience, we want to do everything we can to open up that “black box” so that you can see exactly how it all works. No jargon, no fluff, no complicated schematics. Just plain language and simple-to-understand concepts.
Then, once you understand how it all works, have a good grasp on your investing goals, and are fairly certain that real estate syndications can help you reach those goals, we work with you to invest your money in great deals.
We work with you every step of the way, from the moment you first lay your eyes on a new investment opportunity, through signing the PPM (private placement memorandum), wiring in your funds, and continuing to communicate with you every month throughout the lifecycle of the project.
We are there by your side to answer all your questions, share all the information we find, and to be your ally in finding and vetting investment opportunities on your behalf.
As mentioned earlier, Goodegg Investments is sort of like Anthropologie. We don’t make the clothes, but we stay on top of the trends, find the best artisans, and select the best products to bring to the store.
In other words, we don’t directly manage the assets ourselves. We partner with asset managers who do the day-to-day operations for each property. However, we do stay on top of market research, find and vet different partners, and choose which deals to open up to our investors.
In this way, we’re able to look across different markets and opportunities to choose the cream of the crop for our investors.
In the Anthropologie example, if you were to go into a store and buy a dress, Anthropologie gets a portion of that, and the artisan who made the dress gets a portion of that.
Similarly, when you invest in a deal with us, we are part of the general partnership on that deal, so we share in the splits that are allocated to the general partnership.
For many of our deals, after the 8% preferred return, there’s a 70/30 split – 70% goes to the passive investors, and 30% goes to the general partners (also referred to as the sponsors).
For our work in educating our investors, helping them invest in the deal, and managing the ongoing investor relations, we share in that 30%.
You should also know that you don’t pay us any direct fees.
If you were to invest $50,000, you just wire in $50,000; no additional fees are needed on top of that. Any fees or splits to the general partnership are already written in to your investment amount.
And while we’re on the subject of money, you should also know that we don’t ever touch your money.
You don’t ever wire money directly to us.
Instead, once you sign the PPM (private placement memorandum / hefty legal document), you wire your funds directly into the account for the property. You never write a check or wire money directly to Goodegg Investments.
Once you start to familiarize yourself with the world of real estate syndications and crowdfunding, you’ll realize that there are a lot of different sponsor/operator teams out there doing deals.
We’re certainly not the biggest, and we haven’t been around the longest. So why work with us?
One of the biggest values that we provide is our focus on YOU, the investor.
The teams who are actually acquiring, underwriting, and managing the assets are focused on making the properties perform. Their daily work consists of renovating the property, meeting with contractors, going through financials, etc.
Our daily work consists of serving YOU, our investors. Our main focus is on ensuring that you have everything you need to make an informed decision about these investments, so you can invest wisely, create passive income for your family, and reach your investment goals.
We work hard to provide a world-class investing experience that leaves you feeling welcome, never rushed, never pressured, always listened to, and always part of the community.
Because our focus is on you, rather than operating deals, we can provide that all-in-one full-service experience.
We do all the behind-the-scenes research, vetting, and due diligence, so that we don’t waste your time with risky or low-performing deals. When you invest with us, you enable us to create more great content for you and to continually bring you more and better deals.
That being said, we know that you might still be feeling your way around the real estate syndication world, and we absolutely invite you to explore your options.
If you’re accredited, you might consider signing up for some real estate crowdfunding sites, like RealtyMogul and RealtyShares.
If you’re curious how our partners operate, we invite you to sign up directly with them – just let them know we sent you.
Oh, and one more thing.
Your projected returns are the same, whether you invest with us or directly with a sponsor/operator.
As mentioned, we don’t add any fees on top; we just share in the fees that are already written in.
So it’s completely up to you. If you’d like to see what it’s like to work with us, we invite you to sign up for the Goodegg Investor Club, and we can take it from there.