The Real Estate Crowdfunding Review October 2018 Update
Updated: Sep 8
Newcomer Holdfolio has a shaky start in the rankings. Plus two funds slash minimums exclusively for club members, three funds give private club webinars, and two club feeder funds are created in alternative investments with low minimums.
(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.).
Hold Folio Holdfolio specializes in equity investments in multifamily value-added deals (and formerly single-family residential rentals although they appear to have moved away from that). Each deal is a single property (i.e. there are no multi-property funds). Projected returns vary from 15 to 19% IRR. Very low sponsor experience and very low skin in the game may be a deal-breakers for some. Volume is exceptionally low compared to other platforms and minimums are higher. (Read more...)
Private Investor Club Updates: (Membership in the club is free, but requires verification that the investor has no ties to platforms or sponsors.)
Special Reduced Minimums
Hard money loan fund: Reduced minimum from $25,000 to $15,000 (Off platform fund. Name withheld by request on public website). Hard money loans to fund residential acquisition and rehab (fix and flip) in the western United States. Currently very conservative 60% max ltv. 6 month lockup + 3-6 months to redeem. 8% target return. No leverage, owner occupied only, and first position lien only.
Commerical Real Estate Access Fund: Reduced minimum from $1,000,000 to $2,500 (limited time only) (Off platform fund. Name withheld by request on public website). Diversified general commercial real estate fund. 30 to 50% in other private equity funds. 30 to 50% in direct real estate.
Private Club Webinars
River Rock life settlements Tuesday October 14th at 1pm Eastern / 10am Pacific Life settlements are not directly correlated to the business cycle and provide good diversification in a downturn. Largest and most experienced operator in their niche. This was rescheduled from last week, and login information is not yet available but will be posted here in the forum once it is:
Self Storage: Rockledge Florida (name withheld by request on public website) October 17 at 1 PM Eastern/10 AM Pacific
Experienced self storage sponsor with rare, full-real estate cycle experience and no losses to date. Conservative debt at 65% LTV and very low execution risk. Dial-in number (US): (563) 999-2090 Access code: 454907# International dial-in numbers: https://fccdl.in/i/edbens Join the online meeting: https://join.freeconferencecall.com/edbens More info and discuss in the forum.
Coastal Community community bank start up: October 18 at 4 PM Eastern/1 PM Pacific
Community banks target an underserved market and new regulations help their profitability. This bank is in the larger market of Fort Lauderdale compared to a previous bank some club members invested in in Sarasota. Click here to access the meeting (Connect using Google Chrome for the best experience) : https://anw.li/wQAfaIiu • Web login: 951319249 • Participant PIN code: 6 391 942 Join the conference using a phone 1. Dial one of the following numbers: United States 404-260-1415 (Toll) / 866-866-2244 (Free) Click here for the full list of international access numbers: https://anw.li/6Ofyx0Hj 2. Enter the participant PIN code: 6 391 942 # More info and discuss in the forum.
Private Club Feeder Funds
Life settlements feeder fund Life settlements are not directly correlated to the business cycle and provide good diversification in a downturn. But minimums range from $250,000-$5 million. This fund allows access to this asset class at just $25,000. Click here for more info.
Litigation finance feeder fund Litigation finance is also not directly correlated to the business cycle and can provide good diversification in a downturn. Again, minimums range from $500,000 up. This fund will allow access to the asset class at just $25,000. Click here for more info.