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RealCrowd's Crowdfunding Investment Beats Forecasted Returns
I just wanted to add a quick update on one of my crowdfunding investments from last year on the RealCrowd platform. In May of 2014 I invested in industrial and office building development. The project was a ground up development and they estimated that the property would be ready and sold by September 2015.
The investment had a forecasted IRR of 18-20% and the terms were 8% preferred and then a 60/40 split in favor of the investor. The project was completed ahead of schedule and went under contract in June of 2015. They closed the sale on July 9 and investors received their final distributions on July 15. RealCrowd’s investors realized a 1.35x return on their investment, which over the 14 month hold period represented a 29% IRR. As with all RealCrowd investments, there were no platform fees deducted from our returns. It’s nice to see a professional developer under promise and over deliver to its investors.
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