Has anyone worked with Realty Shares?

Question

Hi BP community!

Has anyone worked with Realty Shares for funding your investment properties? If so, can you share your thoughts and experiences with this company and/or this type of fund?

Thanks for any input-

Kelly

Jim Groves · Answer

In the case of Realty Shares, the platform is only facilitating the offering so there technically is no credit underwriting outside of screening deals to protect the platforms reputation.  In cases where the platform does not underwrite on the investor's behalf, you'll want to look into who the equity co-investors are and that the sponsors have sufficient equity at risk.

Account Closed · Answer

I was wondering the same thing as I heard Brandon and Josh mention it on a recent podcast, namely that they were the "sponsor" for the podcast.  Also wondered how it stacked up against Fundrise, Realty Mogul, CrowdStreet, or Collaperty - which are other crowdfunding websites.  According to Realty Shares, they distinguish themselves by offering lower fees, complete transparency, a seamless investment process, and access to a wider range of investment opportunities. Anyone know if that's true?

The qualifications you must have according to their website are as follows:

A net worth or joint net worth with the person’s spouse exceeding $1 million, not including the value of the primary residence, and / or (2) annual income of $200,000 in each of the two most recent years, or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income in the current year.

In addition, you must have a minimum of $5,000 to contribute to a project, although some investments may go as low as $1,000. There is no maximum investment amount, and you can even qualify as a foreign investor.

Anyone out there who has invested with them care to weigh in?

Timothy Li · Answer

@Jim Groves, you are right. We do things a bit differently here. We underwrite all of our deals with credit committees. We reject 95% of our deals. Our Chief Credit Officer Megan Goodfellow was the commercial real estate risk officer from JPMC for man years. We take pride in our investments made to protect our investors.

Thank you!Tim

Timothy Li · Answer

@all

Whatever you guys choose, make sure you ask who is in charge of their credit department. Do they have the experience and staff to handle complex commercial real estate deals. Another note, make sure that they have the legal and compliance background to negotiate favorable outcomes for retail investors such as yourself.

Thanks

Tim

Has anyone worked with Realty Shares?

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