RealtyShares is intended for accredited real estate investors who are members of RealtyShares and familiar with and willing to accept the risks associated with private investments. Securities sold through private placements are not publicly traded and are intended for investors who do not have a need for liquidity in their investment. The RealyShares is also a real estate crowdfunding platform that brings real estate investors together to finance various real estate projects. This platform enables each real estate investors to get access to various real estate projects with a modest amount of money.
The RealtyShares crowdfunding is supported by a group of world-class real estate investors who have backed some of the most successful technology companies on the planet. Any financial projections or returns are shown on the RealtyShares website are estimated predictions of performance only, are hypothetical, are not based on real investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown.
Types of Real Estate Investment you can make with RealtyShares Crowdfunding
Debt Investment: This is a real estate investment through purchase of bonds or debentures, instead of through the purchase of common or preferred stock (ordinary or preference shares). Real estate investors can invest in the mortgage loan for a property. The real estate investor will receive an interest payment every month. The invested capital is returned at the end of the holding period. These debt investments generate around 8-10% return and the holding period is relatively short just 1 to 2 years. Most of these debt investments fund single family home flips. The investor holds the lien on the property.
Joint Venture Equity: The real estate investors will receive an equity stake in their properties in exchange for funding their projects. Payments realized from the rental income generated by the properties are usually paid out quarterly. The goal of the property manager is to increase value and sell the property off in 3 to 5 years.
The equity real estate investments usually have longer holding periods than debt investments, but the payoff could be higher. Investors receive quarterly payments, typically 5-8%, and get a big payout after a successful exit. The projected total return is usually around 16-18% annually. The equity investments are apartment complexes, retail properties, restaurants, and office buildings.
Preferred Equity: This is a type of real estate investment which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred equity investment is higher ranked to common investments, but subordinate to bonds in terms of the claim.
Real estate owners and developers often try to increase their leverage by financing their projects with capital that is junior to the mortgage debt, but senior to the owner/developer equity. The real estate investors will offer an unsecured loan to the sponsor. The Return On Investment (ROI) is always higher at 12-14%, but the risk is higher as well.
Why you should Start Using the RealtyShares Crowdfunding
Diversification: Invest in debt or equity and commercial or residential investments nationwide.
Cash Flow: The majority of our investments offer monthly or quarterly cash flow distributions.
Transparency: No hidden fees and investment returns are always shown a net of fees.
Sign up in minutes: Should you qualify, you will gain access to exclusive investment opportunities.
Browse investments: RealtyShares offer a variety of asset types, locations, and targeted returns.
Invest from anywhere: Through the RealtyShares simple and secure online process.
Visit the RealtyShares crowdfunding official website to learn more about how real estate investors can conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. RealtyShares crowdfunding gives the real estate investors a diverse range of financing solutions for commercial and residential real estate investment projects including both debt and equity. The result is higher leverage, lower average cost of capital and a single source for all capital needs.