Sponsors & Platforms


Rating Explanation:
1 Very Bad Experience/Criteria
2 Below Average Experience/Criteria

3 Average Experience/Criteria
4 Above Average Experience/Criteria
5 Stellar Experience/Criteria

Broadmark Capital

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Type: Real Estate
URL: broadmark.com
Location: Seattle, WA
Niche: Lending
Prior: Real Crowd

Established in 1987, Broadmark Capital is a merchant bank providing direct investment opportunities for accredited investors, and financing and management services to emerging companies. Pyatt Broadmark Management is an affiliated company of Broadmark Capital and is the Manager of Pyatt Broadmark Real Estate Lending Fund I.

In late 2009 and 2010, we began an extensive due diligence process that included a review of many competitive real estate lending firms. We learned two things: first, we concluded small builders, developers, and real estate investors need short-term commercial financing; moreover, demand for this financing is even more acute today than it has ever been. Historically, this type of financing was supplied by regional banks. However post-credit crisis, many regional banks were either shut down completely, sold to larger competitors, or restricted from making these types of loans. Banks have not returned to this market since that time and we don't believe they will. Second, we concluded a relatively conservative real estate lending fund could be designed to mitigate many of the risks that have plagued this asset class. So we did, and built a fund we would be comfortable recommending to our friends and family. 

Atlas Real Estate Partners

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Type: Real Estate
URL: atlasrep.com
Location: New York, NY
Niche: MF, Office, Retail, Medical & Self-Storage
Prior: Real Crowd

Atlas was founded in 2009 by managing principals Arvind Chary and Alex Foster. The two founders bring over 25 years of institutional investing experience to the investment platform which gives Atlas its competitive advantage of identifying and executing on value-add opportunities. Arvind and Alex have known each other for over 15 years having both attended college at Tufts University and completing graduate school at Columbia University.

We acquire assets across the country with a primary focus on the Washington, D.C. metro, Southern Florida, New York metro, Boston metro, Chicago, and Texas, where Atlas has local partnerships. Typical investments are $10M-$35M in value, often falling below the institutional radar. Multifamily, student-housing, office, and retail. We will evaluate other assets classes on case-by-case basis.

Our target properties typically generate stable, in-place cash flow, offer opportunities to directly add value at the property level, and possess long term upside potential. Atlas has executed 35 deals since being founded in 2009, with a combined value of $650M+. Atlas has a perfect track record of closing deals that are under contract.

Atlas prides itself on best-in-class investor reporting. We're building software solutions that enable investors to view real-time reporting via secure online portal, sign investment docs online and receive distributions and K1's online.

Avistone, LLC

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Type: Real Estate
URL: avistone.com
Location: Laguna Niguel, CA
Niche: Multi-tenant industrial
Prior: Real Crowd

Avistone is staffed by professionals having over 60 years of combined experience, with expertise in asset acquisitions, structured finance and asset management. The firm has the unique ability to integrate extensive capital market knowledge with “boots-on-the-ground” commercial real estate expertise to successfully acquire multi-tenant properties that offer investors attractive yields and strong internal rates of return with low risk. This acquisition strategy, combined with our asset management expertise, serves to improve returns and enhances the risk profile associated with our portfolio of investment properties.

Avistone uses private investor equity, institutional capital and its own discretionary funds to acquire properties. This ability to access multiple sources of capital, including our own discretionary funds, reduces transaction risk and makes closings more efficient and certain.

Our core mission is to foster long-term relationships with our investors, clients and capital providers by always providing top-notch service, superior risk-adjusted returns and transactional best execution.

Fees and Other information about the sponsor:

1. Acquisition fee (typical) – 2%

2. Asset management fee (What is based? (Equity, Total Assets, or Revenue) 0.5% of purchase price annually

3. Management fee (typical) – 4% paid by the tenants with NNN leases

4. Construction fee (typical) – 5%

5. Sponsors Loan fee (typical) – N/A

6. Disposition fee (typical) – 1%

7. Promote & waterfall (typical) 8% Preferred Return, then return of original capital, then spilt profits 70% to investors 30% to Avistone

8. Does Sponsor have catch up fees in waterfall? - No

9. Years of experience/existence – In business for our years, principals have over 60 years experience

10. Number of deals sponsor has participated with outside investors - 12

11. Asset Value of Sponsor's Investments - $86 million

12. Average Investor IRR on completed deals (Low, high and median. If available) – Haven’t sold anything yet

13. Number of times exercise their callable right to investors - none

14. Typical co-investment by sponsor (% or equity) – 5-10%

MLG Capital

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Type: Real Estate
URL: mlgcapital.com
Location: Brookfield, W
Niche: Multi-Family
Prior: Real Crowd

MLG Capital is a Real Estate Investment Manager that utilizes the skills and expertise of the MLG Family of Companies. Since its inception in 1987 MLG has built a significant reputation in investments, brokerage, property management, leasing, development and advisory services.

MLG Capital has successfully owned and operated 61 income properties, totaling 8,100,000 square feet.

MLG Capital’s investment committee is comprised of 7 individuals averaging more than 20 years of industry experience, including two Co-Founders and a CEO who has been with the firm since 1989. Tim Wallen (CEO) was previously a CPA and Manager with Price Waterhouse in San Francisco, CA and Milwaukee, WI.

Inland Pacific Companies

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Type: Real Estate
URL: ipcompanies.com
Location: Broomfield, CO
Niche: Hospitality
Prior: Real Crowd

The Company’s original roots date back to 1973 as a small opportunistic development company run by Leonard O’Byrne to develop hospitality, single family and multi family projects. Timothy O’Byrne joined the company in 1993, when he left his real estate focused law career with Stoel Rives, a large private law firm located in Portland, Oregon, and took on the Inland Pacific Companies branding. Since 1993, IPC has continued to develop hospitality, multi-tenant office, mixed-use retail and single-family / multi-family residential. IPC has widespread knowledge in “turn-key” projects, encompassing all facets of development from land acquisition and entitlement to construction and asset management.

Top 5 by Overall Rating


CrowdStreet

Website - CrowdStreet

Phone888 432-7693

SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed

CrowdStreet allows accredited investors to purchase real estate investments through their platform. Investors can from a wide variety of choices, sign legal documents online and maintain their portfolio. Unlike many sites, CrowdStreet features both debt investment and equity opportunities. These include a wide variety of projects including retail, office, industrial and land.

CrowdStreet reviews every potential opportunity and rejects those that do not meet their strict standards. At this time only accredited investors can look at the investments on CrowdStreet.

Usually, these are wealthy individuals interested in real estate investments, but are interested in combining their resources with other investors. The site benefits accredited investors because now they can see opportunities that were potentially only available to institutional investors were private individuals.

Because they provide wide access to new opportunities, a larger pool of real estate options becomes available. Investors can put their money into a variety of properties across a wide geographic range with a small capital outlay.

Investors see a return on their investment when CrowdStreet distributes the money. Distributions depend on whether the investor has selected equity, debt or a form of hybrid investment. Investors receive distributions in the form of a share of profits for equity investors. Debt investors receive their distribution at a previously agreed-upon interest rate. Both investors would also receive distributions when a property is sold.

There is no fee to join the platform and get involved with investment opportunities. There is a minimum investment for individual opportunities, and some are very low-- in the area of $10,000.

CrowdStreet may open their platform to nonaccredited investors in the future depending on the outcome of the Security and Exchange commission's decision on updating regulations of the JOBS Act.

 

CrowdStreet announced in September of 2014 and they had received $800,000 in seed funding from a group including Green Visor Capital and Seven Peaks Ventures with additional participation from the Portland Seed Fund. They have posted real estate properties worth more than $100 million.

 

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Real Crowd

WebsiteReal Crowd

Fees - NONE

Phone800-286-1602

SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed

Real Crowd is a private, secure, and simple-to-use online platform for accredited investors to assess, review, and invest in commercial real estate opportunities across the nation. It gives investors the tools to browse, compare, and invest with real estate companies. The company was founded by four real estate experts in Silicon Valley. Adam Hooper, Roman Rosario, JD Conley, and Andy Norburg started the company in February 2013. It was built on the Founders' collective capital which was obtained from quality underwriting and transaction experience. Because of their years in working with the best real estate operators, the founders bring consistent and attractive deal flow to their customers.


This company is ideal for accredited investors seeking to diversify their investment portfolio with real estate. RealCrowd is free for investors. By simply creating an account on their website, investors can be connected to the best private real estate companies that are looking for new partners. These private real estate companies pay RealCrowd in order to use the company's platform while investors are not charged.

RealCrowd has been involved in the successful funding of over $110M in deals throughout its platform. What sets this website apart from others is that it is one of the most active institutional-quality commercial real estate investment platforms in the United States. RealCrowd provides access to industrial, retail, cashflow, and multi-family investments from coast to coast. Deals are done from San Francisco to Colorado, Arizona to Washington. RealCrowd’s platform is built around SEC Rule 506(c). To date, RealCrowd has raised over $1.6M in the real estate industry. Investors include Y Combinator, DCVC, Initialized Ventures, Andreessen Horowitz, and General Catalyst.

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Fund That Flip

URL - Fund That Flip

Fees - 2% to 4% loan points as an origination fee deducted from loan funds at loan closing, plus 1% to 3% interest rate spread taken from loan repayments over the course of the loan. There is no cost for investors to sign up and review deals.

Phone - (646) 895-6090

SEC REG - USES 506(c) Open Investments can be advertised and publicly discussed

Fund That Flip specializes in funding the rehabilitation of homes by re-developers. All funding is by debt, not equity investment. Investors are secured with a first-position lien on the underlying real estate.

Loans are given only to qualified re-developers with a minimum of six successfully completed previous projects. The minimum equity investment required of the re-developers seeking the loan funds is 20% of the real estate property's acquisition cost. In some cases, this requirement may be higher. Up to 100% of the construction costs are financed, with holdbacks that are released upon successful achievement of construction milestones, subject to physical inspection. Loan-to-value must be less than 65% of the value of the property after repairs are made.

Investors invest in a Borrower Dependent Note (BPN). This is a security issued by Fund That Flip, which represents a debt investment in the fund. The proceeds less the transaction fees of 2-4% are used to invest in a first-position mortgage note on the property. Investors invest in a specific loan on a specific piece of real estate for a specific borrower. The performance of the investment is directly correlated with the performance of the underlying borrower note (mortgage). Annual returns for investors are in the range of 8% to 14%. There is no indication of how much they have raised so far. The minimum investment is US$5,000.

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Equity Multiple

Website - EquityMultiple.com

Fees - .5% annual asset management fee on equity + 10% carry

Phone - (646)-844-9943

SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed

EQUITYMULTIPLE is the only online investing platform backed by an established real estate company - Mission Capital, a leading national real estate capital markets firm. Since 2002 the firm has advised and managed transactions across commercial and residential loan sales and arranged project financing.
Our national network of real estate companies is constantly seeking opportunities across the country and across property types. They diligence each project and invest with their own funds, aligning their interests with EQUITYMULTIPLE investors and providing a first layer of diligence. 
For projects that survive initial due diligence, we stress test underwriting assumptions, review key legal documents and third party reports and consider transaction structure. A select few are presented on our platform.

We strive to:

Offer a highly curated set of deals, presented comprehensively and transparently
Collaborate with the sponsor or lender to optimize risk-adjusted returns for our investors
Ensure that all investor questions get answered by our dedicated team of investment specialists

Once an equity investment has been made, EQUITYMULTIPLE charges investors a small annual fee — typically 0.5% of the aggregate amount invested — that is paid periodically to cover ongoing investor reporting, tax preparation and communications relating to the investment. EQUITYMULTIPLE also receives 10% of investor profits after investors have received all of their initial investment back.


For preferred equity and debt investments, EQUITYMULTIPLE typically takes a servicing fee in the form of a “spread” between the interest rate being paid by the sponsor or originating lender and that being paid to investors. EQUITYMULTIPLE also generally charges the lender an origination fee and other charges typically associated with initiating a real estate loan or preferred equity investment. In the event of default, extension or other special circumstances, certain fees and charges payable by a borrower or Sponsor will be shared among EQUITYMULTIPLE and investors, as such situations involve increased servicing duties on the part of EQUITYMULTIPLE. Details as to such fees and sharing arrangements can be reviewed in the applicable investment documentation.

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Yieldstreet

Website - Yieldstreet.com

Fees - 1-4% annual management fee

Phone844-943-5378

SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed

YieldStreet’s technology connects investors to asset-based opportunities presented by best-in-class originators. And, its as easy as buying stocks.

YieldStreet investments are debt based alternative investments. YieldStreet Originators take out a loan for a project or need that is collaterized by an underlying asset the originator has, such as a real estate property or legal settlement.

Our offerings currently concentrate in three primary alternative asset classes; real estate, litigation finance and commercial finance. You can learn more about each of our asset classes on YieldStreet University. YieldStreet seeks investment opportunities that provide investors with low correlation to the broader stock market, and target annual yields between 8-20%.

As originators make principal and interest payments during the term of their loan, distributions are paid out directly to investors in the offering.

All YieldStreet offerings are asset-based, meaning your investment is backed by strong collateral such as vehicles or real estate. This collateral acts like insurance in the rare case a borrower defaults.

Our team does an initial review of the opportunity according to the five criteria set in our Investment Philosophy:
Asset-based with strong collateral
Low market correlation
Established asset managers
Short duration (1-3 years)
Attractive yield (8-20% annual target returns)

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