“Crowdfunding will become the future of how most small businesses are going to be financed.” These were the words of Duncan Niederauer, Former NYSE CEO years back. Today. Realty Shares investment platform has made it a reality. With Realty Shares Reviews you will understand ‘How’.
Realty shares.com is a top real estate crowdfunding website with a unique niche out there. They’ve raised over $200 million in capital through this platform for residential and commercial properties.
Although it’s not as popular as other platforms like BulkEstate, EstateGuru, Profitus, and Housers, which is why most people doubt its legality, it’s worth considering.
Remember, you can’t know what market is selling until you enter the market or ask someone that has gone to market first. So, instead of doubting it’s legality, finding out the truth for yourself is the wisest action to take.
This is where reading this article carefully turns out to be a solution. This is because, in this article, I have made reviews on Realty Share.
Reading these Realty Share reviews will give you insight into what you need to know about the platform, along with the pros and cons.
Understanding what RealtyShares investment entails is the first step to knowing its legality. RealtyShares is an online real estate investment platform that connects borrowers, investors, and sponsors for transaction purposes.
The transactions on this platform are basically for small scale business investments and single-family house flips.
And on the platform, investors have the option of investing in a group of properties or investing in a particular property. This is what distinguishes it from other real estate platforms.
The record shows that in 2014, RealtyShares investments included $300 million in real estate valuation across more than 200 properties spanning hundreds of cities in 17 different states.
Having know what it entails, let’s see how it works.
RealtyShares evaluates investment prospects to ensure that they meet the threshold requirements for the platform. The investment containing everything about the platform is listed on the web.
The information ranges from basic information on the deal to legal documentation detailing the risk factors involved with the transaction.
Now, as an investor, you can buy anything from a small portion of a bigger investment to a whole investment. And your investment history earning will be displayed on your dashboard.
You may also opt to finance either equity or real estate loans. Investments may be made in industrial assets.
The platform would also encourage you to make an investment of your choosing, to be financed via the website.
Typically, to use this platform requires you to take the following steps:
To get started, click the link below
As an investor, you will gain a lot.
First, you will get the opportunity to create a portfolio of real estate investments. You can also choose the individual properties you invest in, without dealing with all the management of those properties.
You have a variety of deals to participate in. With that, you can join larger investments that may have only been available to very large investors.
Moreso, you get the opportunity to diversify your holdings on the platform in different types of properties and investment positions, as well as to diversify geographically.
Furthermore, you won’t have to get involved in the routine management of the property because the investments are passive in nature.
All you have to do is just to sit back and enjoy the income that comes. It can come from equity, preferred equity, or debt investment.
Some Reviews Realty Shares investment features include:
Middle Market Investments
According to reviews on reality Shares, it’s believed that this investment option focuses on the middle market. And middle markets include commercial properties valued at $50 million or less.
The Vetting Process
The Vetting Process is one feature that distinguishes RealtyShares from other investments. Although the process is difficult, it helps the platform find viable projects that can yield good returns.
Investment options
Based on Realty Shares Reviews, this platform has three basic types of investments: Common Equity, preferred equity, and debt investment.
Common Equity allows you to keep an equity interest in an entity that invests in the company that owns the property.
With this option, you won’t have a fixed monthly earning. And this makes it riskiest than others. The upside is that you get high returns and some tax benefits.
Meanwhile, preferred Equity allows you to hold a priority equity interest in an entity that invests in the company that owns the property. And unlike, Common equity, you earn monthly but with no tax benefits.
Then with Debt investment option, you can help finance a property loan. You only earn interest which you will get monthly.
The major upside of this option is that it’s secure. While it comes with a low return.
Synchronization
When you set up your RealtyShares account, you will decide which bank account to connect it to. When you have the money available and want to add it to your bank account, you can do so whenever you’re ready.
Since the connection is already in place, receiving your RealtyShares payments is fast and simple.
Customer Support
According to users reviews on RealtyShares, the platform has a good customer support system. On RealtyShares, your have direct access to customer support on the phone.
Security
The investment platform uses 128-bit encryption just like most online platforms. RealtyShares doesn’t store your banking information on its servers, so you can rest assured that this information is secure.
Pricing
Registration and browsing for investment listings on RealtyShares. For equity investments, you will be charged 1% annually for investment management. And for debt investments, you will be charged a servicing fee.
Taxes
You’ll pay taxes differently on each type of investment and each investment type requires a different tax form. RealtyShares will send you the information you need each year to file your taxes.
Minimum initial investment.
The general minimum for any single investment is $5,000, but there are some investments that may be available for as little as $1,000.
Having explained the benefits and features of RealtyShares, let’s discuss the Pros and Cons of the platform. With that, you can determine if the investment platform is right for you or not.
Pros are more of advantages:
Minimum Investment
Unlike some platforms that have a high initial investment rate, with $5,000 you can start out small per investment.
Offer Lots of options
RealtyShares offers a variety of real estate offerings. You will be able to invest in single-family homes to large commercial properties.
Choice of Investment Types
You can choose between three forms of investment: debt, equity, and preferred equity. RealtyShares is one of the few real estate crowd investment platforms to deliver all three of them.
Possible tax benefits
Any of the investment opportunities from RealtyShares could come with tax advantages, which is perfect if you’re trying to add any tax benefits to your overall taxable investment portfolio.
Limited to US residents
If you’re living outside US, you can invest on through this platform.
Illiquid Investments
There is no secondary market to sell your positions and must hold to maturity.
No IRA
It’s difficult to spend of the assets of the tax-advantaged savings in RealtyShares. You must partner with them to spend in another IRA custodian.
Complex investments
In general, real estate is a more complex investment than others. But make sure that you are aware of the ins and outs. Your savings, for example, are not liquid. There’s no way to sell your savings, but you’ve got to stick with them before they mature.
Only for accredited Investors
To invest in RealtyShares, you need to be an accredited investor.
Let’s look at these pros and cons in a tabular form for easy clarification.
| PROS | CONS |
| Minimum Investment | Limited to US residents |
| Offers lots of Options | Illiquid Investments |
| Choice of Investment Types | Offers no IRA |
| Possible tax benefits | Restricted to only accredited investors |
Accredited investors are investors that makes more than $200, 000 each and makes $300,000 jointly.
RealtyShares.com pays investors almost immediately after starting the project. Seeing bank deposits within a few months of choosing the project is gratifying.
They start their projects in late July every year. Then, their payments starts October. So there’s a little lag time as RealtyShares completes the loan, the developer purchases the property, and everything gets underway.
Compared to other crowdfunding sites, RealtyShares gives their investors even more influence. You should pick the type of project and the equity status that suits the risk profile. RealtyShares is an illiquid fund, but you can not spend the capital you will need in the long term.
It is most suitable for buyers who need to be connected to real estate, but who do not want to invest in publicly traded REITs or own land themselves.
Bottom Line
Being able to diversify into real estate with a crowdfunding platform is an excellent reason to use the services of a site like RealtyShares. Fees are minimal and the platform offers all the technical knowledge you need.
There are different pluses and minuses with the business, but RealtyShares would operate well if it did not have the prerequisite for certified investors.
References
- https://investorjunkie.com/reviews/realtyshares/
- https://thecollegeinvestor.com/20401/realtyshares-review/
- https://www.doughroller.net/real-estate-investing/realtyshares-review/
Recommendations
- 15 Best Investment Advice Websites with Realtime Data in 2022
- 15 Real Estate Investing For Beginners In 20221
- Top 20 real estate moguls in the World15 Best Investment Advice Websites with Realtime Data in 2022
- How To Buy Farmland For Investment In 2022 | Expert Guide
- Best Way To Invest $10,000: New Ways To Get Up To 5x Your Money
