What Do You Think About Connect Invest?

Debbie wrote to me and asked a question. If you have any side hustles you’d like to suggest, click here.

Debbie said, “Not sure if this qualifies as a side hustle but wondering if this is legitimate and produces results. Connectinvest.com

“Through Short Notes, you’re investing in a diverse portfolio of real estate debt securities that fund residential and commercial real estate projects with zero overhead, liquidity, and no account fees. Earn high-yielding monthly fixed income with investments starting as low as $500 and commitments as short as 6 months.”

Thanks for Asking Debbie

These types of questions are always tough to answer. The problem is that the secret sauce has less to do with the company and more with the individual.

Two people can find the same side hustle opportunity and have two completely different results.

Let me give you an example. I spent two hours today doing incredibly boring research and training courses on an arbitrage side hustle. Another person might not do that and fall flat on their face.

But Here is What I Can Do For You

I visited the Connect Invest website to see what they had to say. I then researched using the steps I laid out in this guide. You’ll find that is an excellent step-by-step approach for doing independent research.

Let’s start with the basics.

Company Location: I could not find a company address on their website, but they linked to a BBB page that did give an address.

The address is 6700 via Austi Pkwy STE E, Las Vegas, NV 89119-3547.

It is a great location to catch a flight in and out of Vegas.

The State of Nevada says Connect Invest Corporation is a Delaware corporation formed in 2015.

There is also a second company named Connect Invest II LLC which was formed on 10-29-2020.

No company can be without some issues if they’ve been around long enough. Not all people agree, and that can lead to conflict.

I found a suit against Connect Invest Corporation that was filed on February 17, 2020; it named Todd Parriott, listed as the CEO and founder of Connect Invest on their website. – Source

That looks like it was not fun for anyone. The case is now closed.

So What Does Connect Invest Do?

They say, “Our real estate short notes are designed to provide you with monthly passive income. Short Notes fund collateral-backed loans that yield interest at higher rates than what you would get from a bank. “

“Over the investment period of your short note, you will automatically earn interest and principal payments. You will accrue interest either on the 1st or 15th of each month, depending on when your investment cycle started. Upon the maturity of your short note, you will be paid out your invested principal in full.”

Not Sure Connect Invest is a Side Hustle

I’m not sure Connect Invest would qualify as a side hustle since it appears to be passive investing.

But while it is passive, there is always some risk. Connect Invest is open about this on their FAQ page, where they say, “No investments are guaranteed; there is risk in all investments.”

It does appear Connect Invest has a process in place to allow investors to sell their notes before the maturity date. See this document.

It’s Your Call

From a Connect Invest Securities & Exchange Commission (SEC) filing, I found this Connect Invest statement, “A part of our business strategy is to provide financing to acquirers or developers of real estate, mostly in the form of short-term, bridge loans, which necessitate underwriting standards that are less restrictive than traditional mortgage lenders and a loan approval process that is faster than traditional lenders. Substantially all of the real estate loans that Connect Invest funds are expected to be “balloon payment” loans, which are loans requiring the payment of all principal at the maturity of the loan. Balloon payment loans are non-investment grade and, therefore, carry a high risk of default. Balloon payment loans are also riskier than amortizing loans because the borrower’s repayment depends on its ability to refinance the loan or sell the property.”

If you want to invest less than $10,000 a year, you might want to research U.S. Government I Bonds from the Treasury Department.

These bonds are guaranteed by the government and currently pay 9.62%. That is almost as no risk as you can get with a decent rate of return.

For more information, visit this page.

Here is My Opinion

If you want to get involved with Connect Invest, be aware your money is at risk. I feel they will try their best, but the underlying loans carry more risk than I bonds do.

It’s your call. You do you.

Thanks for asking.