Author Topic: RealtyShares -- has anyone tried it?  (Read 2449 times)

ArbitraryGuy

  • 5 O'Clock Shadow
  • *
  • Posts: 53
RealtyShares -- has anyone tried it?
« on: February 22, 2015, 11:58:58 AM »
I've been looking at RealtyShares, which is a peer-to-peer real estate investment platform which allows you to buy shares of an LLC which then makes a loan on an investment property.  It seems like a Prosper or Lending Club for real estate debt notes.  I know many people here, including MMM himself, have used Lending Club.  Does anyone have experience with RealtyShares?  Or if anyone has any general impressions about it (or horror stories), please share.

CanuckStache

  • Stubble
  • **
  • Posts: 110
Re: RealtyShares -- has anyone tried it?
« Reply #1 on: February 22, 2015, 12:37:28 PM »
This is second hand, but a friend was talking about this the other day. They invested something like $5k and after a year had $7k - so quite a good ROI. I know nothing about it other than that they were happy with it.

LordSquidworth

  • Stubble
  • **
  • Posts: 122
Re: RealtyShares -- has anyone tried it?
« Reply #2 on: February 22, 2015, 01:20:14 PM »
They've got one property currently up for investing in. Still pretty small.

Mr. Green

  • Handlebar Stache
  • *****
  • Posts: 1974
  • Age: 36
  • Location: Wilmington, NC
Re: RealtyShares -- has anyone tried it?
« Reply #3 on: February 22, 2015, 07:01:06 PM »
I have looked into them a lot. I even went so far as to register a bank account with them for funding before I found out they have some additional paperwork to file before they can have any more investors from Maryland. They are basically a smaller version of RealtyMogul, which is the leader in peer-to-peer lending for real estate. I like that RealtyShares still allows you to invest smaller amounts of money. RealtyMogul requires a $10,000 minimum.

I've been following RealtyMogul as well and their investments are strongly concentrated in California because that's where they are based. It could just be my perception but I think RealtyShares offers a more diverse selection investments across the continental US. With either service, make sure you read all the documentation for any investment you might buy into but they do everything from the short-term fix/flip to longer term (multi year) investments that are more similar to a REIT investment (control of an apartment complex or commercial center). The short term investments tend to yield 8-10% and the longer term investments can get into the high teens for ROI.