Full Cycle Crowdfunding Real Estate Returns - Equity 23.75%

I  made many post over the years showing the yearly and quarterly results of my crowdfunding investments.  While that information is useful, the most important metric is the final results once an investment has gone full cycle.  I’ve invested online for over 3 years now and of the 95 real estate investments, 31 have gone full cycle.

IRR Returns for Investments going Full cycle

 

15 Debt Deals  -      Average IRR 11.56% - projected 11.50%

10 Hybrid Deals -   Average IRR 11.15% - projected 18.02%

6 Equity Deals  -     Average IRR 23.78%, projected 19.25%

 

Debt Investments

I had a 15 Debt deals go full cycle. Most were on Patch of Land and a few on Fund That Flip A lot had extensions etc. and some delays, but they all paid and I averaged about 11.56% over the past 3 years.

 

Hybrids Investments

 These deals that  have an "interest" payment a kicker at projects completion - I have 10 of these go full cycle and 80% of them missed projections (all IRR's ). The average return was 11.15%.  Almost all of these deals were single family fix and flips. A typical structure was 8% interest paid monthly and the a 9% kicker once the property sold. As you can see, many of the equity kickers did not materialize.

 

20% projected IRR at iFunding realized 10%

13% projected IRR at iFunding realized 13%

18% projected IRR at iFunding realized 14%

20% projected IRR at iFunding realized 16%

20% projected IRR at RealtyShares realized 0%

20% projected IRR at RealtyShares realized 13%

20% projected IRR at RealtyShares realized 15%

17% projected IRR at RealtyShares realized 12%

15% projected IRR at RealtyShares realized 3%

13% projected IRR at Fundrise realized 13%

By Platform iFunding  13.7% IRR, Fundrise averages a 13% IRR, , and Realty Shares 9.2% IRR.

 

Equity Investments

Six equity deals have gone full cycle and overall, they have outperformed. The weighted return for my equity investments was 23.7%.  The average term on my equity investments is 5 to 7 years.  I should have more data on the equity investments in the coming years.

 

21% projected at Realty Mogul self-storage realized 16%

28% projected at RealtyShares office realized 18%

18% projected at RealtyShares fund realized 20%

15% projected at RealCrowd MF realized 28%

20% projected at RealCrowd Industrial realized 29%

15% projected at RealtyShares retail realized 29%

 

RealCrowd returned a 28% IRR, Realty Mogul averaged 24% IRR, and Realty Shares averaged 21.5% IRR.

I have equity 3 investments under contract for a 25% to 30% IRR. 2 investments have returned all of my capital with a refinance, but I still own my portion of the asset.

I currently invest exclusively in straight equity and debt deals now. If you look at the sponsors with the worst ranking at CrowdDD, they are all did hybrid investments.

 

 

Steve Settlage

Member Since: 2015

Apr 19,2017@07;00 PM

 

Thank you for taking the time to do the analysis, very informative. My concern is that all of these operators were during a rising tide (market is going up) so it's easy to perform well. My big question is how did they perform during the last great recession.

Benjamin Cooper

Member Since: 2017

Mar 20,2017@02;50 PM

 

Pretty amazing returns when you consider the worst set of deals still returned an average of 11%.


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