@funwhilelost Each club is a localized llc, and at the moment we just share deal leads, but have aspirations to create a "club of clubs" that each club might put a % of their assets into that would pursue larger-scale opportunities.
@mattcropp That's very cool! How do you handle risk-assessment or help people understand what their repayment structure will look like? (Sorry if I'm in the weeds already, maybe there's something on the interwebs I can check out)
@funwhilelost There is a diversity of practices, but in our club we have members review the documentation and rate the investment on a matrix on a variety of factors. Then the club votes on whether to add the investment to the "Approved Investments List," and then members dot-vote the AIL to allocate the available liquid funds.
Members invest $20-200 monthly, and the expectation is the funds are illiquid, but they can be liquidated on a case by case basis under certain circumstances.
@mattcropp Sounds great. I'm sure there are lots of challenges in evaluating these types of investments since they don't fit the long-running paradigms. Are these matrices something you share publicly?
An investment platform co-op is a great idea, but it remains to be seen whether it would be legal. As Matt (Cropp) mentioned, the investment clubs have to be LLCs, for reasons I'm still not entirely clear on. That said, there's lots of precedence for LLCs being internally structured as co-ops.
Our co-op is an LLC structured with an operating agreement that's co-operative. We modeled it after the one shared publicly by Feel Train and then modified it with a law firm's help in Seattle. It appears to hold up fairly well. It specifically calls out some things as "will be defined by the members" which we collected in a book of procedures. Seems to work for now.
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