1 response

  1. Nav Athwal
    June 18, 2013

    Anthony,

    You make some valid points in your post and you are 100% correct that crowdfunding does not change the threshold for due diligence. At RealtyShares, protecting our investors and only focusing on very high quality exclusive investments is our priority. We thoroughly curate and underwrite every investment as well as the market. This process includes reviewing appraisals and valuation statements, reviewing title, reviewing local (often not publicly available) sales data, reviewing historical data to understand trends and even negotiating better deals terms on behalf of our investors if we see fit. As a result of this vetting process, we agree to list only a small fraction of the investments that are in our pipeline.

    Also, we aren’t solely focused on Trust Deed investments (although trust deed investments do have various benefits including annual yields as high as 9-12%). Rather we are focused on a range of opportunities with the caveat that these opportunities have to make sense for our investors.

    In the end, our goal is to make real estate investing simple and secure so our investors can access quality deal flow and invest efficiently across a broader range of investments. However, we are also very much focused on guarding our brand and reputation as an investment platform that focuses on only the highest quality. Thanks for your coverage here and for raising issues that I think any real estate investor (whether participating through crowdfunding or not) should be aware of.

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