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

Overall:

Communication/Reporting:

Track Record/Performance:

Sponsor Fees:

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!

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.

E Dubbs

Jul 20, 2017

I've been investing in their hard money funds for three years, and have been very happy with them. I've been to their office several times, and attend their annual meetigs on a regular basis. Solid communication, consistent performance, organized. Will continue to invest with them.

K Mo

Jun 06, 2017

I am new to their Funds I and II but I was impressed with their communication on onboarding experience. They have been very responsive and no problem picking up the phone and speaking with someone. I also appreciate debt funds that allow reinvestment of distributions since I use retirement accounts.

C H

Jun 03, 2017

I've been invested with 1 of Broadmark's fund for over 2 years. Their distributions have always been on time and investor reporting/communication has always been excellent. I highly recommend checking them out for real estate debt exposure. 

M C B

May 30, 2017

I have been invested in the BRELF II fund since Jan 2017.  So far I have been very pleased with the consistent returns, thorough and timely communication, and ability to reinvest monthly distributions.

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Broadmark Capital Broadmark Capital
Rated 3.8/5 based on 22 customer reviews

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.