Impact Housing REIT: Review

Category: Non-accredited investor funds
Honors: None

2018-11-26: Impact REIT says that it is shutting down. They claimed they were only able to raise $2 million of the $3 million required for their first acquisition. This is a little bit puzzling, considering the claimed experience. They say that all investors received back their money. 

More discussion in the private club here: Impact REIT.

 

Impact Housing REIT is a commercial real estate fund that seeks to acquire and renovate distressed and/or neglected apartment community in “B/C” locations nationwide.

 

In addition, it has partnered with the Healthy Apartment Property Initiative (HAPI) Foundation, a 501C-3 non-profit, to provide free food and health and wellness programming, as well as fitness education and activities to kids and families living in its communities. (This earns it our "most socially conscious" award).

The sponsor's team says they have acquired and transformed over $3 billion in multifamily properties since 2001 (either as principal or advisor) and raised approximately $260M from private investors. Their 7 year track record is claimed to be a 8.55% annual cash on cash, and IRR of 24.74% on 28 projects containing 40 properties.

The leverage target is a maximum of 80% of purchase price which is aggressive.

They are one of the few non-accredited funds that have  bankruptcy protection. If they go bankrupt, shareholders can vote to select a new manager, which is a great feature.

On the downside, they do not have any quarterly liquidation like competitors in the industry have. This means your money will be locked up for 5 to 7 years until the fund sells all its assets and winds down. So this needs to be long-term money  that you don't need for a while.

 

In addition to performance fees they are one of the few non-accredited funds to charge a 1% disposition fee on the total sales price of the property (the average is no fee). They also charge 1% financing/refinancing fee which is unusual (the average is no fee), as well as construction management and miscellaneous fees which are also unusual.

We are still waiting to hear back on further information regarding target yield and all fees, and will update this review then.

The minimum investment is $1000 (which matches the industry average).

  • Advantages: Considerable track record claim by the sponsor, provides free food health and wellness programming and fitness education to kids and families in its communities through partnership with the nonprofit
     

  • Disadvantages: disposition fees, financing/refinancing fees, construction management and miscellaneous fees are charged (which the average fund doesn't do).
     

  • Accolades: Most experienced sponsors, Most socially conscious.

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

Where can I discuss Impact Housing REIT?


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.

Other Similar Investment Sites:


Looking to compare this site to its competitors? Here are the reviews and rankings…
 


How to pick?
 

Check out our step-by-step guide.
 

Impact Housing REIT (on CrowdStreet)
Get notified of updates
join our mailing list

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. 

  • White Facebook Icon
  • White Twitter Icon
  • White Google+ Icon

© 2015-2018 By Exhedra Solutions, Inc. All rights reserved. Use of this site constitutes your acceptance of it's terms and conditions.
 

Code of Ethics: I do not receive any money from any sponsor or platform for anything including guides, tutorials, postings, reviews, referring investors, affiliate leads or advertising. Nor do I negotiate special terms for myself above what I negotiate for the benefit of members. For clarity: I do receive monetary compensation in 2 ways. Site members can send donations (and a $200 donation entitles them to access my personal low-level due diligence notes on investments I've put money into). And if the club chooses to create a feeder, I take a fee as manager (and keep the excess beyond expenses). Additionally I receive the same non-monetary compensation all club members do: access to otherwise inaccessible sponsors, millions of dollars of special deals and discounts, the satisfaction of giving back and helping others, and more.

We are just investors expressing our opinion, and are not licensed financial advisors, nor attorneys nor accountants. Always consult with your own licensed professional before making any investment decision. All information provided is personal opinion only, and does not constitute professional, financial, tax, legal or other advice.