The Real Estate Crowdfunding Review June 2019 Update
Updated: Apr 2, 2020
Comprehensive review of Equity Multiple, extension to club feeder and latest news on Prodigy Network, etc.
(Usual disclaimer: I'm just an investor expressing my personal opinion and not a registered 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.).
New Comprehensive Review
Equity Multiple Equity Multiple specializes in commercial real estate debt and equity. It's one of the few sites that co-invests in every investment. This gives them true "skin in the game" and one of the industry-leading incentives to do maximum due diligence. They also were one of the first sites to reveal their performance on many (although not all) deals. So they get kudos for transparency. On the other hand, they charge a double layer of fees and profit splits compared to other platforms. This may make their deals difficult for some investors to swallow versus competing options. Also, volume is very low. (More on these in the "pros and cons" section). (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.)
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.
Closing Extended/last call: Broadstone Net Lease + others: multi-fund feeder
The deadline for onboarding has been extended to next Friday, to accommodate club members who asked for more time. This diversified multi-fund feeder-fund invests in:
Broadstone Net Lease: A conservative triple net lease fund with conservative leverage, an investment grade rating, and full cycle experience with no investor money lost.
A value-added multifamily fund with conservative leverage, high skin in the game and claims multiple cycle experience with no investor money lost. Plus 1031 exchange option to all investor to avoid paying taxes via “defer, defer and die”.
A hyper local focus sponsor that does value-added commercial real estate in Los Angeles and has audited results showing multiple cycle experience with no investor losses. (More...)
News and Analysis
Investors Allege 40% Gut-punch Loss on Prodigy Network Deal, Amid Problematic Deals, Allegations of Misappropriation of $2.5 Million of Investor Money and that the Platform is "Broke"... https://buff.ly/2X7qQIS
Crowdfunding firm Prodigy is broke, former exec claims in defamation lawsuit. Complaint by ex-COO Vincent Mikolay alleges crowdfunding platform has “cash difficulties” https://buff.ly/2W3Pwoz