Investing Through RealtyShares?

Question

Has anybody invested through RealtyShares?

What was your experience like?

Were the communication and payments timely or problematic?

Ian Ippolito · Answer

@Doug Utberg,  I have interviewed hundreds of investors who have used the different platforms. RealtyShares has some positive features, including pretty good volume. But  many of the people using them have claimed that they have had problems.  Unlike other platforms, they put themselves into the middle of the transaction, so you do not deal directly with the sponsor, nor do you receive payments directly from them. Instead all questions are routed through them, and then the same thing with payments. People have reported that this results in a game of telephone where they are not getting enough information on for example why their investment is not paying on time.  It also means you are paying an extra fee for this middle man structure.  People have also claimed that for example they have been getting incorrect information on taxes, and one investor might complain and get a corrected version but others may not. Etc.

If you are new to Crowdfunding, I wouldn’t recommend starting at the platform level. I would recommend looking at your own portfolio and figuring out how much should go to real estate, and then how much of that should go into each of the asset types and strategies, based on how much risk you’re willing to take. Then take a look at the 2 to 3 platforms that are the best for whatever you’re interested in. If you don’t, you run the risk of creating a portfolio that is really unbalanced.

Blair Poelman · Answer

You have to be accredited to use their platform - chances are that's a non-starter for a lot of us here

Cliff Lewandowski · Answer

You can see my response to other RealtyShare posts on this site. Dont' do it!! I have a $20,000 investment that has defaulted within 5 months on the RS site. And please don't listen to anyone that uses the term "accredited" investor. To them, that means you have enough money to lose in their crappy investment scheme!

Call Janus, Call Vanguard, Call Fidelity...call anybody but Realtyshares! You wont wake up one day and fine your mutual fund has decreased to Zero!

Investing Through RealtyShares?

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