A Crowdfunding for Real Estate Review Update

Crowdfunding for Real Estate

Broadstone Real Estate Access (BDREX) comprehensive review; most recent news.

(Usual disclaimer: I am just an investor sharing my own opinion and not a licensed financial planner, lawyer or accountant. Check with your own financial practitioners before making any financial decisions.)

In-depth Review

Broadstone Real Estate Access (BDREX)

Broadstone Real Estate Access (BDREX) is a specific 3-strategy fund providing both non-accredited and accredited investors exposure to a diversified portfolio of commercial assets and crowdfunding opportunities. Every strategy is kept in a separate fund sleeve: institutional real estate funds, directly owned real estate and public market real estate equities.

Fees are low and lead the industry. Investors are able to redeem quarterly, and minimums at $2500 are small. This is an especially nice perk because some of the funds in the institutional sleeve usually require access to between $1 and $5 million. I think that this combination of features alone would suffice to make some investors want to pull the trigger.

Unlike nearly all other closed-end funds (including BREIT), you don’t need to find a broker to connect BDREX (nor pay). There are also no minimum requirements for earnings (again unlike BREIT and many other closed-end funds).

A downside is that the fund is fairly new (started in October 2018) and the property sleeve which is directly owned and not yet funded. The fund is actually overweight in the sleeve of the financial markets at about 50 percent. This may also pose several question marks for certain real estate investors who ventured into properties to avoid the public market correlation and uncertainty. BDREX had not supported its property sleeve very early in its existence, and seemed particularly vulnerable to the instability. However, it remained absolutely steady in a more recent market downturn, which may mean it is now much better insulated.

News and Analysis

  • Crowdfunding business Prodigy is broke as claimed in the defamation case by a former exec. Ex-COO Vincent Mikolay’s lawsuit says crowdfunding site has “money difficulties”.