The Real Estate Crowdfunding Review June 2018 Update
Updated: Sep 20, 2023
5 new comprehensive platform reviews, latest industry news, new deal library, and 5 new off-platform deals.
(Usual disclaimer: I'm just an investor expressing my personal opinion and not a financial advisor, attorney or accountant. Consult your own financial professionals before making any financial decisions. Code of Ethics: We do not accept any money from any sponsor or platform for anything, including postings, reviews, referring investors, affiliate leads or advertising. Nor do we negotiate special terms for ourselves in the club above what we negotiate for the benefit of members.).
Hope your summer has been going well. So much is happening with the site right now, that I'm temporarily reviving the monthly update. Here's the latest:
5 new comprehensive platform reviews
I'm doing a massive overhaul of all the platform reviews, and diving deeper and looking more comprehensively than even before. New topics include behind-the-scenes mechanics on how the platform works, much more info on the pros and cons, summary of the legal aspects, and a detailed due diligence of a sample platform deal. Here are the first 5, with more to follow later:
Latest industry news
Retail troubles accelerate. Strip malls hit 10.2% vacancy, the highest in 9 years. Indoor malls hit 8.6%, the highest in 5 years. REIS does not expect improvement anytime soon.
Will Re-Defaults of Mortgage Modifications Undermine Housing Markets? Banks have been playing a shell game with delinquent mortgages. However, the game could be up with 45% of these loans re-defaulting for Bank of America, and 46% for J.P. Morgan bank.
New Deal Library (Note: this material is for private investor club members only. Membership is free but requires verifying that the candidate member has no conflicts of interest first. Click here for more info on the club or to signup). When you're doing due diligence on a new deal, it's really useful to know if the terms (fees, waterfall, etc.) are out of line or not. But this is really difficult for a single investor to get a feel for. So several people have asked that we create a library of deals that members have invested in, which will allow us to do that quickly and easily. And it will also allow us to quickly see the sponsors that are doing well (and the ones that aren't). I've added info on all my deals, and invite you to add yours.
5 New Off-platform Deals (Note: this material is for private investor club members only. Membership is free but requires verifying that the candidate member has no conflicts of interest first. Click here for more info on the club or to signup). All of a sudden I’ve discovered a slew of off-platform deals. If you're interested, here are links to the ongoing due diligence:
Reliant Self Storage: Midgard Key West: Operator claims full real-estate cycle experience with no losses. 551 units with an approved 208 unit expansion plan on the island of Key West.
Cole Net Lease: Long-term double and triple net leases, 147 properties, 14 years of claims experience, 44.3% debt, no lockup and can redeem daily (2% penalty if withdrawn in first year).
Oxygen Factoring (Not real estate but alternative finance so including it for those that might be interested). Claims no losses since 2013 with $21 million of total receivables. Pays 12% APR. Appears to be a much more experienced company with a better performing portfolio than p2bi (which some club members are invested in).
Gulfside bank (Not real estate but alternative finance so including it for those that might be interested). The creation of a new bank with rare authorization from the Federal Reserve in Sarasota Florida. 28% skin in the game by principals. Run by banker with 10x lower loan charge-offs than the average community bank during the great recession.
Pelorus Medical Cannabis Hard Money Loan Fund: 65% loan-to-value, first lien, no debt.
What's next?
I'm currently gathering extensive data for comprehensive reviews of 5 brand new platforms to the rankings, and will post once they are finished.
