Site ranking:

Tier:

#6 (out of 100+) Last year ranking: #22

Contenders (6 out of 10 stars)

None.

What is Sharestates?

 

Sharestates specializes in commercial and residential real estate debt.

Sharestates says that it plans to release it's performance history publicly, very soon. If it does so, that would be great for investor transparency and would move them up the rankings.

Temporarily, they agreed to send me their statistics, and if accurate they're very impressive. They claim to have an uncured default rate of 0.76% in 2017 (1 out of 131 loans) which may be one of the best in the industry (note: we are still waiting to see the uncured default rate through history to make a final determination. See further information below.). Additionally, they claim that on 1 of those uncured defaults, investors got back all their principal and interest, and the 2nd  foreclosure is still pending.

On the downside, the vast majority of their loans are made in New York and New Jersey which are states which do not have a nonjudicial option for foreclosure. Investors who do experience foreclosures in these states face the possibility of extremely lengthy (years instead of months) and expensive (have to pay to fight it out in court) processes. The site says they intend to expand into other states in the future.  If so, investors may wish to cherry pick only the loans from states that have nonjudicial foreclosure.

Their investment volume is adequate (5 open investments when we looked). Although, investors with a large portfolio will need to find other options, such as a hard money loan fund

(They claim that they're one of the largest originators in the industry and that in the sampling month they originated 67 deals. However, they also claim that the vast majority went to institutional investors and only 18 were made available on the platform to retail accredited investors. Since this website is from the point of view of an accredited investor, that is how they are being judged on volume).

They have a fairly low investment minimum of $1,000.

 

 

 

  • Advantages: Low investment minimum of $1,000.
     

  • Disadvantages: Mostly lending in states without a  nonjudicial option,, which means significantly more expensive and time-consuming foreclosures..
     

  • Accolades: None.
     

  • Alleged problematic investments (as reported by investors)
     

    • 2017-11-01: June 2016 loan at 224 Erie Street, Elizabeth, NJ 07206 went into default, uncured default and is now in foreclosure.


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 ShareStates 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 ShareStates Competitors?

 

Here are the reviews and rankings for other residential debt sites:
 

OR...if you're looking for more volume and/or more conservative LTV's than most crowdfunding sites provide, then a fund might be a better choice for you. If so, here is our Guide to the Top 15 Hard Money Loan Funds (and honors)

How to pick?
 

Check out our step-by-step guide.
 

Real Estate Tutorials:
 

Looking to learn more about real-estate investing?

Sharestates:

Review and Ranking

Awards:

Get notified of updates
join our mailing list

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. 

  • White Facebook Icon
  • White Twitter Icon
  • White Google+ Icon

© 2015-2018 By Exhedra Solutions, Inc. All rights reserved. Use of this site constitutes your acceptance of it's terms and conditions.
 

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.

We are just investors expressing our opinion, and are not licensed 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.