cre crowdfundingSharestates Co-founder and CEO, Allen Shayanfekr spoke to the BISNOW team about the evolution of real estate crowdfunding since its 2012 inception. Shayanfekr also discusses how some platforms were able to remain successful while others had to close their doors. Check out a snippet below and click the button to read the full article.

When the federal government signed the JOBS Act into law in 2012, it breathed life into hundreds of new commercial real estate companies offering cheap capital sourced from massive pools of small, private investors. The age of crowdfunding had arrived.

Since then, most crowdfunded CRE lenders have consolidated, been acquired or folded. For the few that have found success, the journey to profitability has been a struggle to remain independent, serve their customers and carve out a niche within the crowded CRE lending space.

“You can find bad CRE deals all day long — that’s what a lot of crowdfunding platforms did, and it’s why they’re no longer around,” Sharestates co-founder and CEO Allen Shayanfekr said. “The more you grow in real estate, the more nuanced and complex the industry becomes. Having a strong background in real estate before getting into crowdfunding is why Sharestates prospered where others disappeared.”

Sharestates has won the 2019 Lendit award for Top Real Estate Platform! We are delighted to receive this award in recognition of our growth, innovation and overall contribution to the new real estate lending ecosystem. Sharestates has been a sponsor and active exhibitor at Lendit for the last 4 years, starting with our first startup pitch at Lendit’s PitchIt session in 2015.

“It’s humbling, and we look forward to continued success through strategic partnerships as well as being part of a monumental financial movement. On behalf of our organization, I’d like to thank the Academy for such an honorable and humbling award. We are very excited about the coming year, and our product rollouts. The community spoke, we listened, and we’re ready to execute!” – Sharestates CEO and Co-founder, Allen Shayanfekr

With big-name development projects hogging the spotlight, the wave of small development projects sweeping across the U.S. has largely gone unnoticed. “Fix-and-flip” properties make up almost 6% of national residential sales, according to Attom Data. In certain markets, flippers account for a third of all residential units sold.

Despite the growing popularity of flipping residential and multifamily properties, the hard-money lending that flippers rely on to finance their purchases has remained stubbornly archaic. But a few operators are now offering new ways to finance the small projects that are becoming the norm.

“Fixing and flipping properties has been a great business model for years, but hard-money lenders have kept the industry from really taking off,” said Michael Ramin, director of business development at Sharestates, a real estate crowdfunding platform that has financed thousands of small development projects. “Now that they have other financing options, flippers can scale their businesses beyond just a few properties and grow it into a real practice.”

GDP growth came in at 2.3% for the year in 2017, and a whopping 4.2% in Q2 2018. Consumers are buying confidently provided that tax cuts will improve yearly income even despite stagnant wage growth. Sharestates multifamily clients are anticipating that U.S. rent growth should maintain its current pace, largely thanks to cities in the South and West, where supply hasn’t outpaced demand.

Multi-family real estate is a staple in the real estate investment community. According to Sharestates CEO and Principal Allen Shayanfekr, “Despite moderating elements, because the economy is healthy, the apartment market is similarly healthy, even if the boom from earlier in this economic cycle has tapered off. ” He goes on to say “Our multifamily clients are anticipating that U.S. rent growth should maintain its current pace, largely thanks to cities in the South and West, where supply hasn’t outpaced demand.”

Read Allen’s full article in Forbes today by clicking the button below.

Since the financial crisis of 2008, there have been varying speculations regarding the health of the retail industry. The bankruptcies of huge retail companies such as Sears and Toys “R” Us add to that speculation. What are real estate investment experts saying about the overall state of retail today?

According to Sharestates Chief Operating Officer, Nicole Joseph “Retail is alive and well. The landscape of the retail market is in flux for certain industries, though, presenting new and unique opportunities for real estate developers and investors. Mixed-use developments and last-mile warehouses will prove to be lucrative investments in the current climate, but both will require careful analysis of local market conditions and demographic trends in the area.”

Read the entire article via the Mann Report, by clicking the link below.

Sharestates has announced that the company will begin financing Non-Performing Loans (NPLs) in 46 states. NPLs, a vital component of the mortgage market, have traditionally only been available to investors with liquidity to purchase the note through institutional trading desks. Sharestates’ NPL loan product now provides private real estate investors access to leverage, allowing for participation in the market and expanding their investment portfolios into this segment of the marketplace.

“As part of our mission and commitment to our community of real estate professionals, we are actively creating a streamlined financial participation matrix for borrowers and our buyers; starting prior to acquisition and evolving through the hold period of the asset(s)” said Sharestates Co-Founder and CEO, Allen Shayanfekr. “Our capital markets team has been working diligently to structure the right programs, covering all asset classes for borrowers, giving them the flexibility they need to grow their portfolio of holdings.”

Lisa Knee, partner and leader of EisnerAmper’s National Real Estate Private Equity Group, spoke to Allen Shayanfekr, CEO and Co-Founder of Sharestates to get his perspective on driving growth in the current real estate marketplace.  Since the enactment of Jumpstart Our Business Startups Act and the follow-up regulations from the SEC, real estate crowdfunding has been a widely used strategy allowing investors access into the marketplace. Since Sharestates was founded in February of 2015, the company has funded over $1.21B in loans.

In this Q&A, Allen discusses:

  • How to stay competitive
  • Key trends in 2018
  • Specific experiences
  • Opportunities and risk

About EisnerAmper

EisnerAmper LLP is one of the largest accounting firms in the U.S., with nearly 1,500 employees and 180 partners across the country. They offer comprehensive audit, accounting, advisory, consulting and tax services for clients as diverse as sophisticated financial institutions and start-ups, global public firms and middle-market companies; as well as high net worth individuals, family offices, not-for-profit organizations, and entrepreneurial ventures across a variety of industries.

Sharestates, an online real estate investment platform, announced on Thursday the launch of new online user portals that fully optimize the real estate investment process from beginning to end, providing investors with the first ever UX solutions in the real estate investment industry. According to Sharestates, the online portals provide lenders, borrowers, and third party vendors involved in the developmental stages to obtain and procure loans.

The platform stated its solution was designed by its development team alongside CEO and Co-Founder Allen Shayanfekr with UX and functionality in mind – now offering investors a streamlined “one-stop shop” in real estate financing. In launching the new online portals, Sharestates is reportedly incorporating engineering, audience development and content for a fresh and crisp user experience aimed at helping users simplify the money lending and borrowing process. The portals now include interfaces for borrowers, brokers, bank attorneys, settlement agents, and title companies. The investment portal noted it plans to add interfaces for inspection companies and appraisers over the coming months.

Speaking about the developments, Shayanfekr stated:

“As we continue to strive to be the nation’s leading private lender, Sharestates identified the lack of a true user experience throughout the real estate investing arena,” said . “The need for a fully functional website that has the tools and simplicity to allow for seamless business transactions is paramount in the real estate investment space.”

Sharestates’ new online portals will also provide investors with the ability to remove the tedious and timely human factor that is implicit with securing borrowed money and instead, live and breathe reactively within Sharestates. The portals now connect various systems and functions of a site, such as underwriting and processing, that are normally independent of each other and will create compatibility between them to ensure cohesiveness. Additionally, the online portals will host all activity, documents, and updates in one place, which can be updated, completed, and submitted accordingly. Further saving time and confusion while simplifying the process digitally. Shayanfekr added:

“While not web designers by trade, we realized that there was a true lack of functionality and simplicity throughout the real estate investing space, compared to many other industries. This was not in existence before and now it will bring our crowdfunding industry up to speed to ensure that our customers receive the highest quality product within a reasonable and fair time frame.”

Introducing the $100k Giveaway

Sharestates is excited to announce that we have originated over $1,000,000,000 in real estate loans! To celebrate, each new registered (and verified) accredited investor on the Sharestates platform will be entered to win $100,000 in Sharestates investment credits! To increase your chances of winning, refer your friends to Sharestates and receive three entries for every new verified accredited investor in your network.

To learn more about the 100k giveaway, and enter to win, click here.

About Sharestates

Sharestates was founded with the mission of bringing Wall Street quality deals to Main Street investors. Individual accredited investors can access a large marketplace of short-term loans for real estate investment properties while investing alongside billion-dollar institutional investors. Each loan goes through our 34-point underwriting process and has projected net returns that range from 8-11%. There are no annual fees, and investors receive monthly interest payments.

Sharestates Real Estate Loan Performance

Sharestates is now one of the Nation’s largest private real estate lenders to date. The company has closed over $1 billion in real estate loans since its 2015 launch. Sharestates investors have received $358 million in returned principal investment from over 495 individual loans and have lost $0 of their principal investments. Click here for the latest performance statistics.

Sharestates loans range across asset type and capital stack position. The company is licensed to lend in 45 states offering investors an opportunity to diversify investments. To view all open investment opportunities, click here.

Sharestates, an online real estate investment platform, announced on Thursday the launch of new online user portals that fully optimize the real estate investment process from beginning to end, providing investors with the first ever UX solutions in the real estate investment industry. According to Sharestates, the online portals provide lenders, borrowers, and third party vendors involved in the developmental stages to obtain and procure loans.

The platform stated its solution was designed by its development team alongside CEO and Co-Founder Allen Shayanfekr with UX and functionality in mind – now offering investors a streamlined “one-stop shop” in real estate financing. In launching the new online portals, Sharestates is reportedly incorporating engineering, audience development and content for a fresh and crisp user experience aimed at helping users simplify the money lending and borrowing process. The portals now include interfaces for borrowers, brokers, bank attorneys, settlement agents, and title companies. The investment portal noted it plans to add interfaces for inspection companies and appraisers over the coming months.