2017 Equity Real Estate Crowdfunding Returns - Cash on Cash 14.7%

Cash on Cash Returns 2017

My final distributions for 2017 are in now and I can share my cash on cash returns for my equity investments.  I had 59 active real estate equity investments during the year. Four of the investments went full cycle and meet or exceeded expectations.  As a result, my cash on cash return for the year was 14.72%. Cash returns were 9.6% in 2016 and 10.1% in 2015. If my baseline investment total was 100 for 2015, I had 180 outstanding in 2016 and 310 outstanding on average in 2017. I basically had 3 times more invested in 2017 in real estate than I did in 2015.


14 of the 59 investments did not have a distribution in 2017. 9 of the 14 were not forecasted to have cash flow.  Therefore, 5 out of the 59 are deals with issues. (5 different platforms) My Real Crowd underperforming investment was a CA multifamily that was slow to lease up. It is now 100% leased and, on the market, so it should have a good ending. This deal represents .9% of my RE equity portfolio. A Fundrise office deal in Chapel Hill, NC lost its major tenant. Time will tell if this one gets worked out. This deal represents .6% of my RE equity portfolio. A Peer Realty office project in Chicago is another lease up problem child.  They have made slow but steady progress.  They are north of breakeven but will be surprised if they make a distribution in 2018. This deal represents .6% of my RE equity portfolio. Realty Mogul’s dog is a Memphis Marriott deal.  Once again occupancy and poor management is the issue. Things are slightly better than a year ago, I would be happy to break even on this one. This deal represents .9% of my RE equity portfolio. The last underperforming deal is a Realty Shares retail center in New Orleans. This seems to be a clueless sponsor in a not so great neighborhood.  Luckily, this was my smallest investment at under .3% of the portfolio. Just over 3% of the portfolio is so troubled that they made no distributions in 2017.


Cash on cash break down by platform


Platform      % of portfolio @ platform   Cash on Cash %


Direct                     71%                                                  16.21%

Real Crowd             12%                                                   11.51%

CrowdStreet            6%                                                     4.75%

Realty Mogul            5%                                                     7.5%

Realty Shares           2%                                                    20.89%


Full Cycle Results


One of my four Realty Shares investments went full cycle which explains the high cash on cash return for RS.  This was a Las Vegas Retail Center that produced a 28% IRR during its 2-year hold. (.6% of portfolio) Real Crowd had one deal go full cycle, a Phoenix industrial building. (1.6% of portfolio) This 18 month hold also returned a 28% IRR. 2 Direct deals also made a final distribution in 2017.  A Post Preferred equity deal hit its projected 14% return during the 12 month hold period. (1.6% of portfolio) The final direct deal that went full cycle was a mobile home park in South Dakota. This 12 month hold produced a 55% return. It accounted for about 9% of the portfolio and accounts for most of the excess cash flow over 2016. CrowdStreet’s cash on cash return is low because 40% of its assets had 0 distributions as forecasted.

Investments made in 2017

During the year I made 14 new equity investments. 3 on CrowdStreet, 1 on Real Crowd and 10 direct with sponsors. 2 Hospitality deals, 3 ground up industrial deals/funds, 5 real estate funds, a self-storage deal, a mobile home park, mobile home park fund and a senior living deal. Its is a bit late in the cycle of hospitality and I suspect will regret investing in those deals. For the second year in a row, I made no investments with Realty Shares, Realty Mogul, or any of the lessor known crowdfunding platforms.


Asset Allocation:

Mobile Home Parks                                             24%

Self-Storage                                                       18%

Multifamily                                                         15%

Mixed Funds                                                       8%

Ground Up                                                          7%

Office                                                                  6%

Retail                                                                  6%

Debt Funds                                                          6%

Hospitality                                                           4%        

Industrial                                                             3%

Senior Living                                                        2%

Share with Email
Top 5 by Overall Rating
A Premier private lending company, we build healthy returns through real estate investing and lending opportunities.
Crystal View Capital is a real estate private equity firm which focuses on acquiring and managing underperforming self-s
Griffin Partners is an entrepreneurial commercial real estate investment, development, and property management firm. We
The RealSource Group of Companies benefits from their proprietary "Econometric Model" which has been in use since 1
To see feedback and discussions from actual Broadmark investors, join over 1600 accredited investors at the 50
Website - Real Crowd Fees - NONE Phone - 800-286-1602 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, r
Website - CrowdStreet Phone - 888 432-7693 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, which is essentially synd
To see feedback and discussions from actual Fund That Flip investors, join over 1600 accredited investors at the 506 Investor Group. 506 Group negotiates lower fees and better terms versus investing direct. URL - Fund That Flip Fees - 2% to
Website - Holdfolio Fees - Various Phone - 317-440-1515 SEC REG - USES neither 506b or 506c Holdfolio was founded on the principle of creating profitable partnerships. We believe individuals need to earn above average return
Website - Brelion.com Fees - Various Phone - (888) 564-3213 SEC REG - TBD Brelion is owned by the same company that owns Smartland sponsor and Peer Realty crowdfunding platform. As real estate developers ourselves, we underst