Tier:

Awards:

#7 (out of 100+) Last year ranking: none

Contenders (6 out of 10 stars)

Most volume for a hard money loan site.

What is Zeus Crowdfunding?

 

Zeus Crowdfunding specializes in first position short-term residential debt investments (hard money loans) ranging from 50 to 75% LTV. They also offer light commercial and construction loans.

 

It has incredible volume for a newcomer, with over 60 open investments currently, making it one of the largest selections in the industry. Additionally, it's one of the few crowdfunding platforms that offers conservative investors loans below 65% LTV. It has a 2.1% uncured default rate (4 foreclosures out of 190 loans originated). The rate drops to 1.3% excluding 2 properties that were flooded in the hurricane. (The top platforms and funds typically have a 2% or less uncured default rate for construction loans and 1% or less for acquisition and light rehab).

Zeus also boasts some innovative features that are unique in the industry. All other platforms lock you in for the entire term of the loan (which is generally one year, but could be a little longer or shorter). Zeus is the only one to offer a semi-liquidity option, where investors may redeem and recover their principal early. Like all liquidity options and illiquid investments, it's not guaranteed. However, Zeus says that every investor who has requested liquidity so far has received back their money within 90 days of the request.

It's also the only site that has a "guarantee" feature that you pay for by getting a slightly lower return. If the borrower defaults, they guarantee that they will pay you back your original principal. (Note: The site is not under any legal obligation to do so, and even if it were: any legal obligation would only be good as the solvency of the company). The site claims that this is happened to 4 investors in their history, and all 4 received back their money.  

They also pre-fund every loan which forces them to give the loans extra due diligence. And they do coinvest in some of their loans (although not all). The minimums are average for the industry at $5000. While the platform itself is relatively new, the company behind Zeus Crowdfunding was founded in 2003 (specializing in both short-term loans and traditional mortgages ). 

The one flaw with the site, is their bankruptcy protection. While they do have a backup administrator/trustee and a mechanism for voting in a new one if there is a problem, only loans over $1 million are set up in a bankruptcy remote structure. This means that if the company went bankrupt, smaller loans would get sucked into the bankruptcy. At the very least, investors and their money would be stuck in limbo for a long time (perhaps years). And investors could lose some or all of their money in the end. If it weren't for this flaw, Zeus Crowdfunding would have been ranked in the top 4. So we hope that by the time the next review, they will have addressed this issue.
 

 

  • Advantages: One of the largest selections of hard money loans in the industry. One of the few platforms offering conservative loans below 65% LTV. Default rate of 1.3% (excluding hurricane damage) is very good. Only platform with a semi-liquidity option and guarantee. Pre-funding and co-investing.
     

  • Disadvantages: Bankruptcy protection does not apply to loans less than one million dollars.
     

  • Accolades: Most volume for a hard money loan site.
     

  • Alleged problematic investments (as reported by investors)
     

    • None.
       

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 Zeus Crowdfunding 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 Zeus Crowdfunding 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)
Debt Investing Tutorials:
 

Looking to learn more about debt (hard money loan) investing? Here's our 4-part step-by-step series.


Related:
 

How to pick? Check out our step-by-step guide.
 

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Zeus Crowdfunding:

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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. 

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