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To see feedback and discussions from actual Broadmark investors, join over 1600 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.
Dec 03, 2019
Broadmark has been a great investment for me. My returns have averaged around 10% annually. They just went public this past month and I bought more stock. I suspect the price will go up significanlty once investors see the returns they generate.
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.
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.
Dec 22, 2017
Have been invested a few months now. Very happy with the performance so far and just decided to increase my investment.
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.
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.
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.
UPDATE 1/2018 - still very happy with Broadmark. Coming up on a year soon and payments are very consistent and communication is good. They have a new investor portal which is also appreciated.
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.
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.
May 09, 2017
Have been invested in BRELF II since mid 2015. Overall higher returns than most of my other RE debt funds. Pleased with them and would invest additional funds
Jan 28, 2017
I invested in BRELF II in September 2016. Outstanding communication including highlights of new loans and full details on any loans in default. LTV can be no greater than 65%. Monthly distributions a plus.
Jan 27, 2017
I've been in their BRELF II fund since late 2015 and I'm very happy with it. Steady returns every month, can auto-reinvest, can withdraw quarterly after 1 yr lockup, monthly reports, professional operation.
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To see feedback and discussions from actual Broadmark investors, join over 1600 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.
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