Realty Shares - shutting down

[Lance Tokuda]

Hello, this is an update on Realty Shares in case you were curious about the service.  They just announced that they are shutting down new deals and using remaining funds to service existing investments.  

I invested in approximately 15 deals with Realty Shares over the past 3 years.  The highest return is over 30% and many deals exited at over 10% annualized.  One deal was fraudulent (loss of capital) and made national news:  https://www.nbcnews.com/politics/justice-departmen...  3+ other deals are in jeopardy and risk loss of capital.  At this point, I would guess a 7% return overall when everything is done.

Realty Mogul claims to be solvent and my contact there said that they were more conservative on deals leading to a lower default rate.  Some deals that appeared on Realty Shares were passed up by Realty Mogul.  Check you Realty Mogul if you are looking for crowdfunding deals with at 15%+ return potential.  You must be an accredited investor.  

I have also invested in the Fundrise growth fund but won't know the actual returns until they exit (5-year holding period).  

[Michael T.]

@Grant Rothenburger to be honest I'm not sure as there are a few established companies such as; Realty Mogul, PeerStreet and Fundrise that will most likely endure, however, there are other smaller companies that have either recently gotten into the space or are trying to get into the space and just won't make it based on today's margins.

Don't get me wrong I think the real estate crowdfunding space will stick around and numerous companies will come out successful, however, the companies that are full of generalizations, estimations and marketing will close fairly quickly.

Since I have very limited investments in this space I'm not sure which ones will consolidate and which ones will close in the near future.

FYI, I have no affiliation with Realty Mogul, PeerStreet or Fundrise.