List Of Real Estate Related Crowdfunding Sites

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I am compiling a list of crowdfunding sites, many of which I have interacted with in some fashion in the last few months. Here is what I have thus far:

  • Fundrise
  • iFunding
  • Realty Mogul
  • Realty Shares
  • RealCrowd
  • CrowdStreet
  • PropertyPeers
  • Crowd Mason
  • Patch Of Land
  • Primaro
  • Growndfloor
  • Prodigy Network
  • Blackhawk Investments
  • Ground Breaker
  • Asset Avenue

Can you think of others I am missing? Any experience you can offer about your interaction with any of the sites above and their business model is appreciated. I am the most familiar with Fundrise, Realty Mogul, iFunding, Patch of Land, and Realty Shares.

Some of the ones listed above are names I found in articles on the subject and they may be inaccurately characterized as crowdfunding sites.

@Bryan Hancock Thanks for putting this list together for the community. I know you've been speaking to the team at Patch of Land, but feel free to reach out to me as well if you have any questions or feedback.

-AdaPia

@Bryan Hancock

I have closed 5 deals ( small debt) with Realty Shares and have been to their office in Mt. View.

RM and I have been batting the ball around but have not put anything together yet. Both of these companies are getting nicely established from what I know and have seen..

RS closed my deals in short order once we got through their extensive due diligence on us as operators.

I am doing my first deal with iFunding right now and we'll probably list it this week. I'm pretty far along with Fundrise too and hope to do a deal on their site in the coming few months.

I located some more of late:

  • Nexregen
  • Crowdbaron
  • Collaperty
  • Fquare
  • OpenAvenue
  • Globerex
  • CrowdTranche
  • GroundFloor Finance
  • Sequorum

Here are my thoughts on the ones I have interacted with thus far as a promoter:

1. iFunding - I think they're the best of the ones I have worked with. William Skelley and Sohin who run the company know what they're doing and their agreements are easy to understand. I have raised 45% of my $604k raise in 3 days on their site

2. Fundrise - I like their platform the best of all the ones I have seen, but their back-end is terrible thus far. Their staff missed my original call with them and they have been far from helpful via email about figuring out their spider web of agreements. I am setting up a call with their legal folks next Wednesday that I got via my securities attorney

3. Realty Mogul - I like Jillene and their platform, but they don't do ground-up development deals so they're not a good fit for me

4. RealtyShares - I tried submitting our company because I heard good things about them on BP. They haven't followed up in over a week so I am not impressed thus far

5. Patch of Land - Their founder will "guarantee" you get funded at 5 points and 15% and they try to raise cheaper money on the site. This seems like somewhat of a conflict of interest to me, but I suppose it fits for some people. After many emails back and forth with them we cut bait because the money was too expensive. They are BY FAR the most responsive of the companies I have worked with thus far though and they seemed quite knowledgeable. They'd be a good fit for some for their type of projects

This week I am going to check out Prodigy Network and will report back what I find out.

@Bryan Hancock sorry to hear that we couldn't do a deal with you. The 5 and 15 rate was for crowdfunding a ground up construction. For a rehab project we usually fund at 4 and 12 for low ARVS and 13 for higher ARVs.

Our rates are variable based on several factors. Our rates scale based upon the comparable risk of the project, the individual borrower and the local market, but we try to be as competitive as we can with the local competition and we offer much more flexibility and responsiveness.

Thanks also for the kind comments on the overall team and our commitment to providing great service to our customers and partners. I hope that in time we'll be able to do a deal with you. Things are moving so fast, and we are growing quickly, so perhaps that time will come soon.

I spoke with Adam Hooper from RealCrowd today and was very impressed. He understood the compliance issues for securities better than any of the other portal owners I have spoken with thus far. Their business model is really for different deal types than the bulk of my opportunities and seems to be more closely aligned with institutional deals.

Crowdstreet hasn't responded to inquiries yet, but it has only been a day. Same for CrowdMason.

These sites didn't seem to have places for promoters to interact with the site or were raising money for their own deals it seemed: PropertyPeers, Prodigy Network, Crowdbaron.

RealtyShares sent some mail back when I asked them about it taking a week to respond and they're supposed to be getting back to me.

These are sites left to review:

  • PrimarQ
  • Groundfloor
  • Blackhawk Investments
  • GroundBreaker
  • Asset Avenue
  • Nexregen
  • Collaperty
  • Fquare
  • OpenAvenue
  • Globerex
  • CrowdTranche
  • GroundFloor Finance
  • Sequorum

From a promoter's standpoint these are my favorites thus far:

1. iFunding

2. Fundrise

3. RealCrowd (For Bigger Deals)

I have now interacted in some fashion with 11 of the 24 that I have found. iFunding has the simplest business model IMO and is working under 506(c).

Fundrise seems to have the biggest network thus far, but their documents are pretty complicated and their business model is hard to understand. Hopefully I can get through some of this clutter with their attorney on Friday.

RealCrowd understands the securities aspects of raising money, indemnifying risk, etc. better than any site I have been able to talk to on the phone thus far.

These sites are unresponsive thus far:

-RealtyShares

-CrowdStreet

That could be a good sign and RealtyShares claims to have 15 submissions per day from new promoters. Perhaps the promoter volume is exceeding their supply of informed people to interact with them. Fundrise seems to have this challenge right now too.

Bryan, great to talk with you yesterday - glad to see you're digging in as deep as you are on the space.

If there's anything else I can help with or if you come up with additional questions please let me know.

-ah

RealtyShares followed up today and I am trying to schedule a call with them. I also reached out to many more of the sites yesterday and crossed some off the list that are either too early to the fray or look too small to deal with. I have contacted or eliminated 16 of the 24 companies on the list above.

If anyone has any experiences to share or other sites to visit please do so ;-)

@Bryan Hancock

Realty Shares closed another one for me today... Basically a hard money loan with equity

Could someone give a basic end to end on the process for getting a deal financed via crowd funding. I am interested in the concept for my next in fill project, however have no idea how to put it together. Any fine points would be appreciated. Is there a minimum or maximum size deal, etc.

@Karen Margrave

and Me Karen I have had 5 deals funded by Realty Shares. And Realty Mogul and I have been exploring some deals but nothing has resonated with them yet.... They do perform... Although they are very picky about who they do business with.. At least I had to give a full doc type app.. they want to be careful and I don't blame them

@Jay Hinrichs That's great. Maybe you can answer the question posed by @Kenneth Bell outlining the entire process from applying to funding, etc.? I'm sure each has their own process. Also @AdaPia DErrico maybe you can give an example too?

@Karen Margrave thanks @Bryan Hancock has actually helped me a lot already by looking at one development project I am trying to fund in Charlotte. Looking for funding post 2008 is very different. I have done infill before but this is the first assemblage I have done. I am really interested in the crowdfunding space. I have reached out to Groundbreaker and I am considering listing my project there. I have not ever do this before, so I want to avoid any possible pitfalls. Any detailed advice or experience someone might have would be great!

@Karen Margrave thanks for referring this to me.

@Kenneth Bell Each crowdfunding portal is a little bit different. You should probably first decide what is the best structure for your project. Are you interested in sharing equity in the project in return for funding, or are you more interested in a crowdfunded, peer 2 peer loan? With an equity play you generally don't have to worry about monthly payments on your loan, but you have to split or share the upside on your project, which could be a significant amount of money. A crowdfunded loan however would require you to usually make regular interest-only payments on the debt, but any resulting profit from the sale or lease would be all yours.

Another consideration is where the project will take place. Many portals only work in certain states. Minimums and maximums also change per crowdfunding company but these are usually fairly broad.

If you give me a few more details on the project I could probably help refer you to an appropriate portal.

Once you decide which crowdfunding site is the best fit for you, each will have their own onboarding and application process. Some perform due diligence themselves and only work with projects that they believe show promise, while others will let you list almost anything and trust in "the wisdom of the crowd" to weed out anything that isn't a good opportunity. You should prepare a decent narrative on why your project will be a lucrative investment along with the associated due diligence documents such as appraisals, BPOs, cash flow statements, construction budget details, comps, and projections. Obviously this will change depending on what type of project you're looking at. Is it a fix and flip , a buy and hold, a value add lease-up? Each will need different supporting documents to show how you're going to turn that property into a successful project. Let me know which type of project you're considering and I can perhaps point you in the right direction.

You should also be prepared to give some history on yourself and your past experience. Can investors be confident that you're the right person for the job, even if you run into setbacks or cost overruns?

Let me know more about what you're planning and I'll be able to help with more specific details. Good luck!

For development projects these are the best sites for raising equity:

  • iFunding
  • Fundrise

These sites are really good too if you're looking to raise money for other things:

  • RealtyShares
  • RealCrowd

RealtyMogul is better for debt placements and GroundBreaker is good for white label services as are some other companies in the business of doing that type of thing.

@AdaPia DErrico The project I am doing is a 6 home residential infill project. In Charlotte NC. I have talked to interested parties with both options, equity partners and debt finance. I bought 4 lots that assembled, and then split into 6 lots. I am willing to subordinate the lots if I go the debt route. My decision on which route to go would be based on the total cost of the money and if I could form a relationship for the other projects that I have upcoming. I have questions concerning the best way to place the project on one of these crowdfunding sites as well. Any advice or direction you may have would be appreciated.

@Kenneth Bell

from my experience crowdfunders are in between banks and hard money with some of them actually the same if not higher rates than hard money on the debt side... On the equity side its whatever you can negotiate.

What puts the crowd funders in a unique position is they solicit investors from all over the country or world. were as a Hard money lender tends to attract money from the local market and lend in the local market. And or have bank LOC's and or their own cash.

However with my deals that got funded I was put through what I would equate to bank underwriting..... Now that was just me and the few I talked to.

were a hard money lender in your market may be a true equity lender and not care about your financials or experience level.

@Jay Hinrichs would you be able to share w/ us the appoximate up front costs that you had to bear so that we could plan accordingly for any projects we may bring to the future? i.e., are there any "listing fees" with the funding portals? What other fees are there, ongoing reporting / fund management fees, etc? Any insight would be greatly appreciated.

@Manolis Sfinarolakis

I am vehemently opposed to up front fee's for any lending situation.

What I do is provide Bullitt proof references background credit and financials . If after reviewing that data they want to proceed with me or us then we go forward. I would never ever pay anyone up front to underwrite me. Other than maybe an appraisal and credit report.. Anyone who ask for 5 to 10k or more for due diligence I pass on ... This is me personally

Both RE Shares and RE Mogul charged nothing to underwrite my deals. If that answers your question.. I have met the owners of both in their offices and have nothing but good things to say about each

JLH

@Jay Hinrichs excellent. Do either Realty Mogul or Realty Shares require an operator to have a certain number of deals under their belt before they will take on a deal? I heard that Realty Mogul requires 100 million in prior syndication / development experience?

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@David K.

Did not know there is a north Portland Maine... Just joshing you being that I live in Portland OREGON and we have N S E W and then SE NW ...

I think Crowdfunding puts pressure on HML's and other non tradional lenders. CF need to be uber careful in their underwriting as they are new to the game

Originally posted by @Jay Hinrichs :
"being that I live in Portland OREGON"

My mom goes to Oregon and tents on some cliffs in the summer. I've seen pics, very beautiful but i've never been west of Great Lakes. I need to venture to the west coast sometime. Just not sure i could move there and give up my Maine lobster dipped in some nice melted butter :)

Nice to meet ya Jay!

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