Cadre: Comprehensive 2018 Review and Ranking

Awards:

Tier:

None

What is Cadre?

Cadre is a platform that claims on its public website to specialize in commercial real-estate (CRE)  investments.
 

Unfortunately, Cadre refused to answer all questions for this public review. 
 

Almost every other platform is overjoyed when they're considered for a review and usually bend over backwards to answer everything they can.

A few are similar to Cadre and go with "no comment". As a group, these others haven't had the most spotless or stellar track record
 

  1. iFunding: Ultimately declared bankruptcy and became unable to properly administer investor money in their fund. More recently accused by the SEC of defrauding and misappropriating $1.17 million of investor money 
     

  2. Fundrise "v1.0": (This was the first version of the company that used to offer accredited investor deals). The CEO was ultimately ousted, fired and/or resigned. The CFO was ultimately accused by the company of blackmailing them over alleged financial improprieties in the company and fired. And the entire accredited offering business model was ultimately shut down and abandoned.
     

  3. Harvest Returns: A newer platform that investors allege appears to have significant "investor interest" challenges. (Review coming shortly.)
     

So since I cannot post anything about Cadre from my own
experience, I am instead focusing this review on what Fortune Magazine and Bloomberg News have to say about them.


Fortune Magazine: "Falsely Boosted Profits"
 

In March 2018, Fortune Magazine published an article about Cadre which claims the company benefited from falsely boosted profit on one of its claimed proof-of-concept deals.
 

"Real Estate Company Filed False Documents to Boost Its Profit"
 

Kushner Cos. filed at least 80 documents for 34 properties across New York City, including three buildings in a gentrifying neighborhood in Queens that the company bought in 2015. The paperwork, filed between 2013 and 2016, claimed that none of the units were rent-regulated, however more than 300 of the units were rent-regulated, according to tax documents.
...
For Cadre, the project with Kushner Cos. was the first deal it handled from start to finish. The startup’s role in working on the three buildings in Queens, which sold in 2017 for nearly 50% more than Kushner Cos. paid for them, was touted as a proof-of-concept for its business model."

 

Bloomberg Financial: "Benefited from Misleading Rent Filings"

Bloomberg Financial News reported even more information on this deal:


"Cadre Startup Benefited From Misleading Rent Filings"
 

Cadre, the real estate investing startup co-founded by White House senior adviser Jared Kushner, was the primary beneficiary of a property-flipping investment that may have been less profitable if it had fully complied with New York City disclosure rules about rent-regulated tenants.

Cadre owned about 60 percent of three rent-regulated buildings in Queens sold by Kushner Cos. in April 2017. The $59 million price tag was an 80 percent premium over what they paid in January 2015, property records in New York show. It was the first known deal that Cadre, then a fledgling company, took from purchase to sale, and the high rate of return in a short time was touted as a proof-of-concept for its web-based investing platform.

Kushner Cos., Cadre’s operating partner at the properties, told the city the buildings had no rent-regulated tenants when applying for construction permits to update the buildings in 2015 but tax records filed later showed almost 100 such residents, according to a report by the Associated Press. The number of tenants fell precipitously prior to the buildings’ sale, the wire service reported.
 

Residential buildings with rent controls are worth less than those without and can merit greater oversight by New York City during construction.

 

How does Cadre work?

Unfortunately, Cadre refused to provide the answers to this for a public review.
 

What are CrowdStreet Pros and Cons?

  • Advantages: Unfortunately, Cadre refused to provide the answers to this for a public review.
     

  • Disadvantages: Significant negative info in financial press. Unfortunately, Cadre refused to provide the answers to anything more for a public review.
     

  • Accolades: none
     

For more raw data on other sites (including investor and sponsor fees, legal structure etc.), or to easily compare competitors, see the feature by feature comparison matrix.​​

Is Investing In Cadre Legal?

Unfortunately, Cadre refused to provide the answers to their legal structure for a public review.

What does a Cadre deal look like?

 

Unfortunately, Cadre refused to provide the answers to this for a public review.
 

For those investing in Cadre, you may wish to see how I pick deals in general at:  The Conservative Investors Guide to Due Diligence.

Where can I discuss other Cadre deals?


You can do this with thousands of other investors in the private investor club. While the club is free, membership is restricted to investors who have no business connections to sponsors or platforms. Also, all members must agree to keep all club info confidential by signing a nondisclosure agreement. Click here to join or get more info.

 

Who are Cadre Competitors?


Here are the reviews and rankings for other similar sites.

 

How do I invest in equity and/or debt?

Looking to learn more about real-estate investing?

Related:

How to pick? Check out our step-by-step guide.
 

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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. 

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