A lot of crowdfunding sites for property investments are mainly tech firms (learning from business models of Google and Uber), while some are entering the marketplace as property developers applying tech to what their offer already is. RealtyeVest is one of the latter ones and a new name founded by a prosperous property investor and operator developing an outsourced network to make a curated property marketplace. A new profit-sharing way of work with mainly short holding periods, especially for clients with an existing property background.
- No charges for investors
- Transparent way of work
- New ways of sharing profits on debt transactions
- A good pedigree in the property sector
- Accepts certified investors only
- Principals have considerable experience in the industry but the company has a fairly limited history (five deals sponsored until now)
- Dealflow not high
- Limited information about the due diligence procedure
- Payments made just by check
First the company's name was "IHT Realty Crowdfunding", but they changed it some months ago and switched from the white-label platform of the Groundbreaker to their proprietary platform.
The firm provides debt and equity investments in a variety of project styles, from single house fix-and-flips to large mobile-home developments. Some of their debt investments often have a profit-share option - investors earn a part of the upside when selling or refinancing.
They provide accessibility to "Pledge Funds," a pool utilized for off-market deals that are highly lucrative and usually offered just for a cople of hours - investors can here opt to be part a singular deal - this renders it distinct from other investment funds.
The company aims "on-trend" investment chances – those in line with important demographic and economic patterns, such as the necessity of a larger number of assisted living and the hesitance of millennials to plunge into buying a residence.
When investing via the company, you get an interest in membership in an LLC made just for that investment. The LLC then retains the interest in the real estate. You will get a separate K1 at tax time for every investment made with the firm to show your share of the profits the LLC has earned.
How are profits gained by the company?
The company does not directly collect fees - sponsors pay a charge for listing their ventures on RealtyeVest.
Cash Flow and Potential Returns
Many of the investments on RealtyeVest provide a yearly profit of ten percent paid on a quarterly basis. Some of the debt investments provide a profit-sharing option, too, where investors earn a pro-rate share of ten percent of the property's upside when selling or refinancing.
Investment periods range from three months to two and a half years for successful investments.
Scope of RealtyeVest Offers
Seven active investments (including the Pledge Fund), and three "Coming Soon," are listed on the website, all of them debt, but some do have a profit-share portion.
Regulatory Structure and Standards of Due Diligence
Under SEC Reg D, RealtyeVest provides investments just to approved investors. They're not a licensed broker dealer or investment advisor.
The company highlights its curating position and how they pick investments, although the specifics on their site are a little unclear, since they say their team of underwriters has considerable expertise in structuring and implementing custom funding strategies for developers, homebuilders and real estate contractors. They make sure that every deal is underwritten property prior to it being listed on the website.
Although this type of mechanism shouldn't be a replacement for your own due diligence prior to placing an investment, it is a different take than other sites that providing similar investments and operate more like market, providing limited curation.
RealtyeVest main features and highlights
- Real Estate Investments