Acquire Real Estate:
Review and Ranking
What is Acquire Real Estate?
We had been very disappointed with the trend with Acquire Real Estate this year. After having such high hopes and them ranking as high as #5 a year ago, all of the investment volume completely dried up and this year and it's rating was going to have to be removed. We had hoped that maybe they would take our previous advice about changing their uncompetitive compensation structure, but this never happened.
Then (perhaps as not too much of a surprise) it was announced that it was acquired by Realty Shares, for undisclosed terms. the old review is being left below, for historical purposes.
It specializes in commercial real estate debt and equity, with a mix of funds and direct investments.
It is the Bentley of the industry in numerous ways. (Bentleys are ultra high-end cars, starting at a minimum of $180,000 and up).
It's one of the few crowdfunding sites to offer coveted core plus investments, which are part of the bedrock of a diversified portfolio. It's one of the few sites that puts true "skin in the game" by co-investing in every deal, which is a tremendous testament to its confidence in its due diligence. And it has numerous other first-class investor protections (with pre-funding), ultralow minimums ($2,500 versus $10,000 average), good investment volume, and the safety of $6 million of venture capital investment.
So why is it ranked only number 5? The problem is that (just like a Bentley) it costs more than competitors. It charges a base fee that ranges from 0.7% to 2% per year. Then, if the investment is successful it charges another 5% fee when capital is returned at the end of the investment. On an average investment lasting five years, this equates to an additional percentage point per year. (This would be more on shorter investments, and less on longer). So on a successful five year investment, the total Acquire Real Estate fees range from 1.7% to 3% per year (versus 1% average).
On top of this, there are additional underlying sponsor fees to consider as well. For example, a recent investments has the sponsor giving the investor a preferred 8% return, and then charging 35% of everything on top of that.
If it were not for the fee structure, Acquire Real Estate, would be ranked in the "best of the best", and possibly even #1. So we strongly hope that the site reconsiders its pricing in the future, so it can be rated higher than it is today.
Fitting for its Bentley-esque persona, Acquire Real Estate also gives away the best swag in the top 10 to it's investors. It has run generous promotions where investors get $500 for every friend they refer, or receive an iWatch for making their first investment.
Advantages: core and core plus investments, investor protection with investing, pre-funding, ultralow minimums ($2500 versus $10,000 average), good investment volume, $6 million of venture capital.
Disadvantages: Fees are expensive (1.7% - 3% on a successful five year investment; more for a shorter and less for a longer period) versus 1% average.This fee is paid on top of the fees the investor must pay to the underlying sponsor as well. Also, limited bankruptcy protection.
Accolades: #1 for core and core plus investments. A top site for low minimums.
Where can I discuss other Acquire Real Estate deals?
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Who are Acquire Real Estate Competitors?
Here are the reviews and rankings for other similar sites.
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Previously #1 for core and core-plus investments.
The Exited (1 out of 10 stars)
None (out of 100+) Last year ranking:#5.
Have you used the above site before? What was your experience?
This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed.