URL:
Location:
Seattle, WA
Niche:
Lending
Prior::
Real Crowd

Overall:

Communication/Reporting:

Track Record/Performance:

Sponsor Fees:

To see feedback and discussions from actual Broadmark investors, join over 1000 accredited investors at the 506 Investor Group. 506 Group negotiates lower fees and better terms versus investing direct. Members of the 506 Group have invested over $20 million with Broadmark.

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. 

Due Diligence & Discussions

Share your experience. Rate and comment!

Earl Novendstern

Jul 12, 2019

From a discussion I had with Broadmark today (and I invested $150K), they will no longer be taking private equity after today.   They are in the process of trying to go "public," due to banking regulation limitations on the number of investors.   Once they go public, current private investors will be given the option of liquidating or converting to the public shares.   Interest rates they pay will then be based on how the market evaluates the public offering.

Does anyone know of other private funds similar to Broadmark that allow liquidation after one year?   I don't want to tie up funds for a number of years.  Thanks.

Daniel E

May 05, 2019

Good communication, fair reporting and OK fees.  There are concerns regarding LTCs that are never mentioned in the reports and the future of the fund. 

Torgeir Willumsen

Dec 22, 2017

Have been invested a few months now. Very happy with the performance so far and just decided to increase my investment.

Alberto BigG

Dec 15, 2017

Edwin Lichtig

Nov 02, 2017

I have been a Pyatt Broadmark investor for several years now.  Introduced to them via my angel investment group.  As part of the due diligence team, we compiled about a 60 page report on this company. 

I am very pleased with this fund.  I invest only in real estate lending funds.  Like the monthly income and relative safety.  Pyatt is the best of the bunch.

We researched the principals background.  Very solid.  The fund manager is stable both personally and professionally.  The fund has grown from about 50 million to over 300 million.  Many members of our angel investment group became investors.

I have gotten every payment like clockwork.  I even liquidated my entire account (only to re-establish my account shortly therafter) and had no problem getting my funds back (minus a small market value adjustment due to one losing loan).  You never really know about a fund until you ask for a disbursement (especially a big one).

They provide monthly statements (not quarterly).  They provide two funds (Seattle and Denver).  They arrange for an annual meeting of investors (very important - most funds will not do this).  This meeting allows you to meet other investors.

The only concern I have is that the fund will lend on riskier projects (land development loans are possible).  Hence the term of some of the loans is longer tha 12 months.  Nevertheless the LTV max on the riskier loans are lower.

This fund is for income investors.  They are currently making 10% per year.  That will trend down to about 8% per year over time.

I think if you take part of your interest every year let's say 1% and invest in "put" options, you could cushion your losses if/when the real estate market drops again.  Hard to stomach losing the dollars you allocate to buy put options every year knowing that most years the options will expire worthless.

I have had a hard time finding annoterh lending fund that measures up.

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Rated 4.0/5 based on 31 customer reviews

To see feedback and discussions from actual Broadmark investors, join over 1000 accredited investors at the 506 Investor Group. 506 Group negotiates lower fees and better terms versus investing direct. Members of the 506 Group have invested over $20 million with Broadmark.

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.