Since 2013, Sharestates has operated with one principle in mind: To offer private investors direct access to online real estate investments and to provide borrowers with access to capital at a competitive rate. We’ve been able to succeed on both counts as the following statistics show.
The first Sharestates loan was issued in 2015. Since then, the platform has received 5,514 loan applications. That’s an average of 1,838 per year or more than 35 per week. Of these applications, we’ve closed on 1,615 loans for a total volume of $1,442,329, 050. That’s an average of $893,083 per loan.
These are numbers to be proud of and illustrate that Sharestates does not accept any run-of-the-mill investment opportunity. Rather, we employ a rigorous review of all loans with a 34-point underwriting process. And investor returns are a stark testimony to our process.
Cumulative investor returns have risen steadily over the life of the platform. In July 2015, cumulative investor returns were less than $100,000. By January 2016, they had risen to over $2 million. By July of the same year, that number was over $6 million. Today, cumulative investor returns are over $80 million. We should surpass $100 million by the end of the first quarter of 2019.
Average annualized returns have remained fairly stable. In 2015, investors earned an average 10.99% on investments through Sharestates. In 2018, the average has been 10.20%. Average annualized returns in the first quarter were at 10.25%. Q3 saw the lowest at 10.03%, but Q4 saw the highest of the year at 10.31%. We’re hopeful that a rising real estate market is going to be good for investors in 2019.
One of Sharestates’ goals is to minimize losses for investors. Since we opened operations, there have been a total of nine loans past due for 60 days or more. That is less than a 1% past due rate. The number of loans that have gone into foreclosure is 14. Again, that represents less than 1% of Sharestates loans. The number of REO properties is also less than 1% with only seven loans. We’re proud to announce, however, that investors have lost 0% of their principal in the last three years of issuing loans, a stellar track record.
Sharestates Investors and Geographic Operations
Sharestates has, by no means, reached its zenith. At this time, we are operational in 23 states, and we’re licensed to lend in 47 states. That gives us a lot to look forward to as we continue to expand and grow in 2019 and beyond.
New York is the state with the most loans issued; a testament to the deep roots Sharestates has developed here over time. A total of 797 loans have been issued in New York since the company’s inception, representing 55.6% of the total loans issued. There are several states where only one loan has been issued to date. Of these, Michigan had the smallest at $117,000. Almost all of the states along the eastern seaboard have been added onboard. Some of the larger states out West (California and Texas, for instance) have Sharestates loans issued as does Hawaii with one $1 million loan. The largest area uncovered by Sharestates is the flyover region.
The majority of Sharestates loans are first lien positions with a mere 2.7% in the second lien position. We’ve issued loans in the residential, multifamily, commercial, mixed-use, and land categories.
On the investor side, we have private investors in 41 states. Over 700 loans have been paid off to date for a total of $536,018,450 total principal returns. Our origination volume has increased from a mere $1 million in January 2015 to over $1.4 billion today. We’ve also seen 23% of our borrowers return and 80% of our investors getting in on more than one deal for a total investment size of $121,849.
Sharestates looks forward to continuing our steady growth while serving both real estate investors as well as direct borrowers and brokers. Thank you for your trust and for being part of the Sharestates family. We believe in full transparency with our community. For more insights into Sharestates performance, visit our statistics page.
