CROWD FUNDING ; REALTY SHARES, REALTY MOGUL....

[Peter Amour]

i have been using realty shares for the last two years and have been pretty happy . Has anyone had and deals on any of the top crowd funding sites go bad ? if so , was it loss of total investment or just a reduced return ? i am sure at some point i will have to ask my accountant how to handle a loss , but hope not :)

[Mark Robertson]

There are 3 types of investments on Realty Shares and most of the other platforms. Equity, Debt, and a Hybrid. Different returns for each class. Debt 9%-12%. Hybrid (2nd position with an interest rate of say 9% and a 5-10% kicker at the end of the project) 15-18%. Equity 15% to 30%+.  Here are my investments  that have gone full cycle over the past 3 years.

I had a lot of Debt deals (20+) go full cycle.  A lot had extensions etc and some delays, but they all paid and I averaged about 11% over the past 3 years.

Hybrids - I have 9 of these go full cycle and most missed projections (all IRR's )

20% projected  at iFunding did 10% 

13% projected at iFunding did 13% 

18% projected at iFunding did 14% 

20% projected at RealtyShares did 0%

20% projected at RealtyShares did 13%

20% projected at RealtyShares did 15%

17% projected at RealtyShares did 12%

15% projected at RealtyShares did 3%

14% projected at Fundrise did 13%

Equity 6 equity deals have gone full cycle and overall they have out performed

21% projected at Realty Mogul self storage did 16%

28% projected at RealtyShares office did 18%

18% projected at RealtyShares fund  did 20%

15% projected at RealCrowd MF did 28%

20% projected at RealCrowd Industrial did 29%

15% projected at RealtyShares retail did 29%

(I have equity 3 investments under contract for a 25% to 30% IRR)

I only doing straight equity and debt deals now. If you look at the sponsors with the worst ranking at CrowdDD, they are all did Hybrid investments.