RealCrowd - micro commercial real-estate loans/shares

[205guy]

Hi,

I just read about this on hackernews, and immediately thought of the MMM crowd. It's a website where investors "buy shares of income producing real estate." To my surprise, it doesn't seem to have been mentioned before.

  https://www.realcrowd.com/

I am not affiliated, not related, or in any way associated with them. I am not a savvy investor myself, and I haven't read beyond the first page of their website. But maybe somebody here can comment on the risks and rewards of the model, as well as any tax implications (does it matter that they call them shares and not microloans?), maybe even try it out and let us know.

[arebelspy]

Earlier discussions about Real Estate Crowd Funding:

https://forum.mrmoneymustache.com/investor-alley/any-concerns-about-investing-in-crowdfunded-commercial-real-estate/msg83336/

https://forum.mrmoneymustache.com/investor-alley/has-anyone-used-real-estate-crowdfunding/

It's a new thing, so all the companies are new.  It's something upon which due diligence must be done very, very carefully.

I'd recommend getting into direct real estate, with a property manager if you want it more passive, with a turn key company if you want it even more passive, with a REIT if you want it completely passive.

For now, I'd pass on all the real estate crowd funding companies that don't have a track record and are stumbling in the dark waiting for SEC clarification on a number of things.

[adamhooper]

Hey guys, founder of RealCrowd here. I definitely don't want to be spammy or self promotional, but just wanted to see if I can be a resource as you're all looking into investing through platforms like this.

I share a lot of concerns that have been brought up here and elsewhere about potential issues, but there are some fundamental differences in how the different platforms approach these investments that can have a pretty big impact on the eventual investor.

Let me know if there are any specific questions I can help with.

-ah