The Real Estate Crowdfunding Review April 2019 Update
Updated: Feb 11
Deep-dive review of the newly revamped FundRise, Broadmark funds roll-call, Grubb feeder onboarding and industry news.
(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.).
FundRise Fundrise is a website that specializes in commercial and residential investments in both equity and debt offerings. Investments are generally available to all investors (including non-accredited). And it recently revamped it's entire investing process in a way that experienced investors may find off-putting. On one hand, Fundrise has one of the largest variety of non-accredited investor funds in the industry. It's one of the few sites that puts full-fledged bankruptcy protection on every fund, which gives investors extra peace of mind. The $500 minimum on one of its options is one of the lowest around. It has an extremely polished and easy to use website. And the relatively high projected returns may be be appealing to certain aggressive investors. On the other hand, under the revamped system, even slightly sophisticated investors may be quite put off by how difficult (or impossible) the platform now makes it to understand exactly what they will be investing in, before purchase. And conservative investors may find the underwriting standards of at least some of the offerings unsuitable. (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. New members can apply here.)
Broadmark Funds Investor Roll-call Are you invested in one of the Broadmark funds? If so, please fill out this confidential roll-call so we'll collectively know how much we've invested with them. (Read more...)
Club-only Feeder Fund Updates
Feeders allow club members to access funds that significantly lower minimums than direct investment. They can also offer better diversification and simpler taxes.
Grubb Properties Feeder fund (upcoming 2nd and final closing) Diversified office and multifamily value-added and development fund in the SouthEast with unusual add-on strategy. Sponsor has multiple cycle experience with only 2 deals with lost principal.Target total return in the mid teens.| (More...)
More News and Analysis
RealEstate investors remain reluctant to jump into Opportunity Zone plays, per latest Preqin research, due to uncertainty surrounding program regulations and the inherent risk of investing in low-income and distressed neighborhoods. https://buff.ly/2YBRKJW
Thanks for the interview LifeBridge Capital: "How Private Investor Clubs Help with Real Estate Deal Flow, Deal Analysis and Capital" with Ian Ippolito. https://buff.ly/2YLGQl8
New York City retail downturn extends into Q1, with rent drops in 10 of `12 neighborhoods and growing vacancies and online competition. https://buff.ly/2UEU9ok
SEC says wildly popular Direct Lending Investments inflated returns for years and investors could lose 25 (or more) of their money. Also: how the "roach test" saved me from investing in DLI, and how it might help you avoid a catastrophic mistake. buff.ly/2KIveMS
How to Invest in Passive Real Estate Without Paying a Penny of Tax (Legally): Part 3: The Power of "Passive-Pairing". Dramatically cut or even wipe out your investment tax bill with "passive-pairing". https://buff.ly/2IqJyXh