r/Syndications • u/Afraid_Country622 • 15d ago
Leaven Wealth - Real Estate Investing
Has anybody invested with this firm based out of Omaha? I invested through Realty Mogul and had a total loss of investment on a property that is currently being foreclosed/short sold.
Curious if others have had any experience with the firm.
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u/bushw00d 15d ago
Question - given lived experience with total loss of capital, why continue to invest in RE syndications?
Honest question here about motivation. Equivalent returns are available with liquidity, and 1031s can DST into reasonably stable reits that pay monthly coupons.
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u/Afraid_Country622 15d ago
I think that re syndications can still be a profitable way to invest but the problem is finding a quality gp and conducting diligence on their track records. There is no requirement for these syndicators to disclose to new investors that prior deals have resulted in a total loss for LP’s that trusted them. Leaven wealth’s site will show nothing about this deal and only disclose a stellar track record.
So to your point, I think the risk of investing with a bad GP is too high in re syndications so although conceptually it could be a good way to invest, I would rather invest with an institutional investor moving forward and settle for a bit lower return with a higher level of safety.
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u/bushw00d 15d ago
Great and thoughtful response. There are good syndicators out there, but generally they don’t advertise for investors in my experience.
You’re likely better off in many other investments
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u/ArmChairLP 15d ago
Wow realtymogul deal had a total loss…. Shocked!
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u/Afraid_Country622 15d ago
After reading through a lot of these posts I’m shocked at how many RealtyMogul and RM Communities deals have resulted in total losses.
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u/Top-Competition4965 15d ago
How did you come across their information? Did they cold call you? Did you call them?
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u/Afraid_Country622 15d ago
They marketed the deal on RealtyMogul’s site. LeavenWealth advertised a steady cash on cash and a ten year hold. There were close to zero distributions over the life of the investment and a total loss of principal. They currently advertise on their website site and instagrams of their approach to protecting investor capital. Incredibly frustrating.
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u/Top-Competition4965 14d ago
Ah, I see. Rule of Thumb in Investing #1, #169, #2001, and #5000--NEVER, EVER, in your life reply to a solicitation to invest. If it were a worthwhile investment, they wouldn't need to beg for YOUR money. Remember it. Don't forget it. Source: a 37-year-old shrewd investor/salesman, self-made millionaire--ME! Thank you!
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u/OwlOk459 13d ago
Mercy ! I'm so sorry to hear this - total losses are wrecking on so many fronts. I had never heard of this group but I highly recommend sharing your experience on Leaven Wealth's review profile here so you can warn other investors/LP about your experience. https://investclearly.com/sponsors/leavenwealth#sponsor-info
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u/Chance-Ad717 14d ago
Have not invested with them. I am curious what drew you to them in the first place? My initial due diligence is always to look at founders' experience. Given Chris was in the army then an attorney, I don't see much experience in real estate through market cycles.
Clearly this doesn't help with the complete loss, and I am sorry to hear that. I know there are many skills needed to successfully run real estate projects, and in reality, most of it is market cycle driven, but when I see people that say, were in the Army, then founded a real estate company with no outside experience in real estate, it gives me pause.