• Ian Ippolito

The Real Estate Crowdfunding Review June 2019 Update

Updated: Feb 11

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 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...)

  • Want more? Here's a list of all of the other current club feeders. (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

  • Thanks for the interview #TheRicherGeek . I got to talk about how to earn passive income through crowdfunding, as well as strategies and things to watch out for. https://buff.ly/2EITEjY

#accreditedinvestorverification #qualifiedpurchaserverification #feederfunds #FundRise #Broadmark

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About Ian Ippolito

Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.

 

Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.

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Code of Ethics: I do not receive any money from any sponsor or platform for anything including guides, tutorials, postings, reviews, referring investors, affiliate leads or advertising. Nor do I negotiate special terms for myself above what I negotiate for the benefit of members. For clarity: I do receive monetary compensation in 2 ways. Site members can send donations (and a $200 donation entitles them to access my personal low-level due diligence notes on investments I've put money into). And if the club chooses to create a feeder, I take a fee as manager (and keep the excess beyond expenses). Additionally I receive the same non-monetary compensation all club members do: access to otherwise inaccessible sponsors, millions of dollars of special deals and discounts, the satisfaction of giving back and helping others, and more.

I/we are just investors expressing our opinion, and are not registered financial advisors, nor attorneys nor accountants. Always consult with your own licensed professional before making any investment decision. All information provided is personal opinion only, and does not constitute professional, financial, tax, legal or other advice.