What is SBRE Funds?
IMPORTANT COVID-19 UPDATE: this info was posted before anyone knew we would be facing a global pandemic in the spring of 2020. So it may be missing crucial information necessary to making an effective investment today. Some of the information in it may be dated, no longer accurate and/or irrelevant. For information on analyzing investments in this new era, see: "How will Covid-19 / Coronavirus Affect my Alternative Investment Portfolio?"
SBRE Funds (which stands for Small Balance Real Estate) is a newcomer to the rankings that made a strong initial splash. It features an impressively diverse universe of investment options spanning from equity to debt, commercial to residential, and across numerous asset classes and strategies.
And despite its freshman status, it had one of the largest volumes of available investments during the sampling period (10, which placed it in the top 4 of the entire industry). The platform also gets kudos for co-investing in some of the deals, which is an additional alignment of interest when it occurs (deals with co-investment are notated in the deal notes).
It's the only site currently that allows an investor to filter new deals by investment strategy. This is an extremely handy feature and something that will hopefully become an industry-wide standard.
Investors pay no platform fees for many of the investments when they are funds (fund level fees are charged by the sponsor). On property specific deals there can be platform fees.
If it were not for a major flaw, SBRE Funds would have ranked even higher than it did. Unfortunately, the site does not have any bankruptcy protection should it go out of business. The principals claim that they have a strong business outside of the platform that makes this highly unlikely. However there is no way for investors to verify or deny the validity of this claim. And even if they could, there's no guarantee the situation wouldn't change tomorrow. We hope that by the time of the next review, SBRE Funds decides to strengthen this part of their offering.
The other issue for some is that the minimums are high compared to other options ($50,000-$250,000 compared to an industry average of $10,000). It would be nice to see them reduce this to allow more investors to participate.
Advantages: High investment volume, diverse asset classes and investment types, very helpful investment filtering by strategy.
Disadvantages: no bankruptcy protection. Minimums are high ($50k-$250k versus industry average of $10k).
Accolades: Top new-comer award (highest ranking by a newcomer to the rankings)
For more raw data on the site (including investor and sponsor fees, legal structure etc.), or to easily compare it with the data of competitors, see the feature by feature comparison matrix.
Where can I discuss other SBRE Funds deals?
You can do this with thousands of other investors in the private investor club. While the club is free, membership is restricted to investors who have no business connections to sponsors or platforms. Also, all members must agree to keep all club info confidential by signing a nondisclosure agreement. Click here to join or get more info.
Who are SBRE Funds Competitors?
Here are the reviews and rankings for other similar sites.
How to pick?
Check out our step-by-step guide.
Real Estate Tutorials:
Looking to learn more about real-estate investing?
Up-and-coming (5 out of 10 stars)
Top newcomer award (highest ranking by a newcomer)
Review and Ranking
#8 (out of 100+) Last year ranking: none.
Code of Ethics: To maintain objectivity, I do not accept any money from any sponsor or platform for anything (including affiliate ads, advertising etc.). See code of ethics for more.
Personal opinion only: All info is my personal opinion only as an investor. I am not a registered financial advisor, attorney or accountant. Always do your own due diligence and consult with your own licensed professionals before making any investment decision. Information is believed to be correct but may have errors, so use at your own risk. If you find an error, please let me know.
Rankings/rating are general: In my opinion, every investor comes from a different risk tolerance and financial situation, so there's no such thing as a single investment or platform that's great for everyone. There are many deals that aggressive investors love, which I won't touch, and vice versa. And every investor has their own way of doing due diligence. I believe there's no one right way to do it.
So, the site rankings/ratings are based on criteria which I feel are important to the broadest range of investors (transparency, volume, bankruptcy protection, etc). And even though I have my own personal, conservative, due diligence method (and talk about how the site's deals measure up in the "deep dive section"), I don't use my personal criteria as a factor in the rankings. So for example, a high ranking/rating doesn't mean that I would personally invest in a site (and vice versa). Click here to see what's in my own portfolio.
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.
Have you used the above site before? What was your experience?
This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed.