2015 CrowdFunding Real World Cash Returns - Over 10%

I asked for feedback from our readers on their experiences with real estate crowdfunding.  We received quite a bit of feedback and over 95% of it was positive.  Most projects have performed as expected and no one has reported the loss of principle.  There are a few troubled projects on almost every platform and the platforms are working to resolve all of the issues.  As one would expect (since the industry is so new) most of the problems investments have been short term debt deals.  It is crucial for all debt investors to only invest in low loan to value deals.  The advantage to investing in real estate debt is the underlying real estate is used as collateral and the foreclosure of that property is what should ensure most investors do not lose equity.  The platforms have stepped up on every bad deal and are being proactive in taking over the collateral.

I personally started to invest in real estate crowdfunding deals in January of 2014.  2015 is the first year I was fully invested and I now have diverse data on how my investments are performing. Over the next few months, I will give detailed reports on my investments from each of the real estate crowdfunding platforms.   I thought it would be helpful to our readers to see my actual cash on cash returns from both my equity and debt crowdfunding investments from 2015.

In 2015 I had 20 different debt investments outstanding for at least part of the year.  My debt cash on cash yield was 12.38% for the year.  For reporting purposed I time weighted my investments.  For example, if I had a $10,000 investment that was paid off after 6 months, I counted that as a $5000 investment for the year.  If it paid $600 in interest, the yield would be 12% (600/5000).  The yield ranged from 0% to 25%. One Realty shares loan only paid back principle and two Realty shares loans paid an interest bonus at close if they hit certain goals. This resulted in their time weighted return to exceed 20%.

I had one Fundrise Brooklyn debt investment and it yielded 14%.  All eleven of Patch of Land loans paid on time each month and my yield was 12.4%.  A number of the loans asked for extensions and paid extra points for the privilege which were passed along to investors.  My two iFunding debt investments yielded 12.55%.  WI  came in at 11.76% and Almonaster at 14.58%. My six Realty Shares debt investments yielded 12.77%.  Normandie’s 0% yield was boosted by Pullman’s 25% yield and the Fix & Flip Fund 2 yield of 23%.

On the equity side, I had 34 investments outstanding during 2015.  My portfolio’s cash on cash return from equity distributions was 10.01%.  Eight of the investments had no distributions in 2015 as projected.  My overall returns were boosted from 5 investments that yielded over 20% each.  Here is a summary of all my equity investments.  Again they are time weighted.  If a $20,000 investment was outstanding for only 3 months, it was considered a $5000 investment for the year.

 You can discover, rate, and review patch of Land investments at CrowdDD.com.