Type:
Real Estate
Focus:
Real Estate Debt & Equity

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

Website - Realty Shares

Fees - 1% annual management

Phone -  866-202-2023

SEC REG - USES 506(b) Open Investments can NOT be advertised or publicly discussed

RealtyShares is a crowdfunding platform dedicated to real estate investing and development. Their approach creates an ideal way for developers to get funding fast, as well as allow investors with as little as $1,000 begin to invest in real estate. Investors can place funds in commercial, retail, residential as well as multiple-use property.

Launched in late 2013, RealtyShares participated in the 500 Startups Accelerator, and has funded real estate crowdfunding projects in eight states in the United States. The total value of real estate holdings funded through the site is north of $70 million.

Currently, only accredited investors can invest in offerings. The site is waiting on SEC rulings that would allow them to open up to non-accredited investors. In April of 2014, the company raised $1.9 million dollars from General Catalyst Partners. They have also secured funds from former E*Trade Chief Operating Officer Neil Sequeira and Savneet Singh, currently head of Gold Bullion International.

Investors can join the real estate crowdfunding site for free. When they invest in an offering, the site charges a fee to fund reporting and ongoing communications with the client. Investors should consult the operating agreement on each investment to review the fees involved.

RealtyShare offerings are all private placements exempt from rule 506(b) of Regulation D. Currently RealtyShares is not using the new exemption called Rule 506(c) which would allow them to advertise their service to the public. They plan to advertise in the future, however.

In what follows, are the top RealtyShares reviews. 

Due Diligence & Discussions

Share your experience. Rate and comment!

Dan Smith

Aug 10, 2017

I would highly recommend avoiding this platform.  I have 6 relatively new investments with RS that are too early to evaluate.  It is not the investments that are the problem, it is RS total lack of internal controls, updates and overall communication.

I experienced two major issues in my two plus months on RS.  The most recent was a major investment where RS debited my account TWO MONTHS prior to the deal closing and prior to their accrual date. The deal still isn't closed.  I call RS 3 or 4 times over this two month period and several times received no return phone call.  On the one occasion that someone returned the call, they stated that closing had been delayed and had no further information.  I finally called and indicated that I wanted out of the investment.  At that point, RS acknowledged debiting my (and all other investor) accounts PRIOR to having a firm closing date which they acknowledged was against their own policy.  Despite verbally acknowledging that RS had erred in debiting investor accounts, I received an e-mail update from the investment manager stating that the issue was with the lender not closing timely.  I requested compensation from RS due to their early debiting error.  While they again acknowledged their error, they refused compensation.  RS is allowing me out of the deal, but requires two different forms be signed multiple days apart and indicated it would take up to two weeks to get the erroneously debited investment back.

The other major issue was at the beginning of the process.  RS was unable to debit my bank account via ACH for my first investment due to a bad account number.  While I certainly bear resposibility for missing a digit in my account number, there are two issues with RS internal controls that surfaced.  First, RS does NOT require you to enter your bank account number twice for verification like every other financial institution I've ever dealt with.  Second, in resolving the issue, RS had one of their IT personnel access my complete banking information and confirm it back to me.  Clearly, banking information with RS is NOT secure.

Some of this could be growing pains, but after two significant issues within about two months and RS poor handling of both issues, I have decided to not use RS in the future.

Glenn Gerisch

Jul 10, 2017

 I started with this platform after RM stopped offering residential debt. They have a good mix of deals and frequently post smaller debt offerings, but you have to move fast as they often close in less than an hour. They need to improve the timeliness on the postings for project updates. If the sponsor doesn’t provide one, they don’t seem to follow up.

Suhail Mohammed

Jul 07, 2017

I have done about 7 debt deals so far on RS, both commercial and residential debt. I really like the fact they they offer commerical ones as well as compared to other debt platforms which are just SFH. Its a way of diversification for me. Performance has been as expected so far, but lets see how it goes over time.

Jack Reidy

May 02, 2017

I have been investing CRE sites since early 2013 when this genre began to form. I personally have invested in 10 different Crowdfunding sites and researched 25 others.

Realty Shares has moved up the leaderboard in my opinion and they are one my three "go to" sites for investing in real estate.

Here are my results thus far:

Average return of 16.16% on 15 closed deals. Highest Annualized return of 42% and lowest just shy of 3%. No loss of principal and a wealth of options between debt, equity, residential and commercial.

I have 25 existing opportunities in various phases and happy with how things are progressing.

There have been problems along the way and there are Sponsors who do not work out well which have been listed previously.

All in all, I think RS is one of the better sites for accredited investors.

 

James Bobbett

Feb 19, 2017

RealtyShares was my main platform starting out. I have made 8 investments with them: 2 have completed successfully, 2 have completed unsuccessfully, 1 is in progress doing well, and 3 are in progress doing badly. It may just be bad luck or bad judgement on my part. 3 of the problems are with one sponsor, TriWest.

They don't prefund and don't seem to put your $ to work quickly. Even when a simple debt deals goes as planned, the IRR is a fraction less than advertised, I think it's because they take your money early and don't put it right to work.

I will not use RS anymore.

Top 5 by Overall Rating
MLG Capital is a Real Estate Investment Manager that utilizes the skills and expertise of the MLG Family of Companies. S
At Watermark Partners Real Estate, we raise and actively manage funds for the acquisition, improvement and management of
ApexOne Investment Partners is a privately held real estate investment firm and fund manager. Our platform was created t
Avistone is a real estate investment management firm with expertise in the acquisition and operation of multi?tenant ind
Xebec Realty is a private, vertically integrated real estate firm that focuses on the acquisition, development and manag
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 essent
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
URL - Fund That Flip Fees - 2% to 4% loan points as an origination fee deducted from loan funds at loan closing, plus 1% to 3% interest rate spread taken from loan repayments over the course of the loan. There is no cost for investors to sign up and
Website - EquityMultiple.com Fees - .5% annual asset management fee on equity + 10% carry Phone - 646)-844-9943 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed EQUITYMULTIPLE is the only online investi
Website - Instalend.com Fees - 1-4% annual management fee (spread) Phone - (480) 624-2599 Through its online real estate crowdfunding marketplace structure, InstaLend makes it possible for investors to achieve higher rates of return on
Realty Shares Realty Shares
Rated 2.5/5 based on 19 customer reviews

Website - Realty Shares

Fees - 1% annual management

Phone -  866-202-2023

SEC REG - USES 506(b) Open Investments can NOT be advertised or publicly discussed

RealtyShares is a crowdfunding platform dedicated to real estate investing and development. Their approach creates an ideal way for developers to get funding fast, as well as allow investors with as little as $1,000 begin to invest in real estate. Investors can place funds in commercial, retail, residential as well as multiple-use property.

Launched in late 2013, RealtyShares participated in the 500 Startups Accelerator, and has funded real estate crowdfunding projects in eight states in the United States. The total value of real estate holdings funded through the site is north of $70 million.

Currently, only accredited investors can invest in offerings. The site is waiting on SEC rulings that would allow them to open up to non-accredited investors. In April of 2014, the company raised $1.9 million dollars from General Catalyst Partners. They have also secured funds from former E*Trade Chief Operating Officer Neil Sequeira and Savneet Singh, currently head of Gold Bullion International.

Investors can join the real estate crowdfunding site for free. When they invest in an offering, the site charges a fee to fund reporting and ongoing communications with the client. Investors should consult the operating agreement on each investment to review the fees involved.

RealtyShare offerings are all private placements exempt from rule 506(b) of Regulation D. Currently RealtyShares is not using the new exemption called Rule 506(c) which would allow them to advertise their service to the public. They plan to advertise in the future, however.

In what follows, are the top RealtyShares reviews.