The Real Estate Crowdfunding Review November 2018 Update
Newcomer platform Cadre refuses to answer public questions, but Mr. Google still has plenty to say. The private investor club joins the billionaire club. And 3 feeder funds with reduced 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.).
Cadre Cadre is a platform that claims on its public website to specialize in commercial real-estate (CRE) investments. Unfortunately, it also refused to answer all our questions for this public review. (Joining a small group of platforms that on the whole have ended up having "less than stellar" track records). So, forced to go with Mr. Google, I found some very interesting articles on Cadre from Fortune Magazine and Bloomberg Business News alleging financial improprieties. (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.)
Thanks to everyone who completed the new club survey. We've grown from $500 million to over $1.35 billion in investable assets, which helps a lot in negotiating special deals for members. If you haven't completed your survey, please help us get more deals by doing so. (More info...)
Private Club Feeder Fund Updates
Conservative Core+ NNN (Triple Net Lease) feeder fund This is one of the rare core+ funds available to mere accredited investors. (Name kept confidential on public web site). It invests in long-term, low-management triple net leases (NNN) in recession resistant and Amazon resistant industries (medical, fast service restaurants, industrial etc.). Principals have full real estate cycle experience in this strategy with no losses and the fund currently has a very low default rate. It also has a rare investment grade rating and over $74 million of insider "skin in the game". It is heavily diversified (558 properties, 42 states, 118 brands, 44 industries) and conservatively leveraged at 40% LTV. It's currently returning 9-11% net (including feeder fee).The minimum for this fund is normally $200k (reduced from $500k for the club). By popular request, we're creating a feeder fund to reduce the minimum further to just $25k. (Feeder fee is 1% and already included in net calculations).. (More info...)
Life settlements feeder fund Life settlements are not directly correlated to the business cycle and can provide good diversification and protection in a downturn. Update: After surveying the industry, the club has voted on the best fund for it (name kept confidential on public website). It has a $5 million minimum, but the feeder fund will allow access at just $25k. There will be a private webinar for this confidential fund next week. (More info...)
Litigation finance feeder fund Litigation finance is also not directly correlated to the business cycle and can provide good diversification and protection in a downturn. Minimums are normally from $500k up, but this fund allow access at just $25k. Update: The club has identified a candidate fund (name kept confidential on public website) who will be providing members with a private webinar in mid-to-late November. (More info...)