Tyler Crowe

And three,

We can't give personalized advice, so always ask kind of generic questions.

So what would an investor do, or what do you think about a stock?

We can't necessarily tell you what you should do with your portfolio.

We don't want to get in trouble with the SEC, like Andrew Left did.

So with that in mind, here is the question from Matt.

Hi, Motley Fool team.

I have questions about whether syndicated, crowdfunded private equity and real estate should have a place in my portfolio.

Basically, the rest of it goes as, could you share your thoughts on how to safely invest in and evaluate these funds?

What specific red flags or metrics should I look out for as I compare for them?

Thanks for all the great content.

So, Lou, I want to start with you.

Private equity, real estate, this was a really popular thing, I think, 2019, 2020, where a lot of the regulations changed, where instead of having to be what was called an accredited investor, where you had to have enough either money or income to invest at a certain level, they brought down those thresholds and made what they said was democratizing private equity.

It's had some mixed results.

And I think that's kind of what we're getting at here.

So when you're looking at this particular part of the market, what are you looking for?

Just do your homework.

yeah matt i'll let you do the final words here but in a previous life for me at motley fool i did some work on some scoring and rating of crowdfunded real estate funds and in my assessment the better ones were at best you know you get a percentage point or slightly more on a net basis after fees than publicly traded reads and you had to lock up your capital in these illiquid securities and at worst

They were launderers of fees that basically they could pitch massive yields and huge growth to the investors.

But they just bought and sold a bunch of stuff within the portfolio to rack up transaction costs and management fees.