Sharestates has been originating real estate loans and providing high returns to investors since 2015. Originally offering both debt and equity investments, the platform has since targeted its focus on debt offerings only due to their general security and shorter loan terms. Overtime Sharestates has proven to be a staple for fast closings and competitive rates in the private lending market. Every day real estate investors looking for passive income also turn to Sharestates.
Sharestates Versus the Stock Market
Real estate crowdfunding has historically outperformed the S&P 500 with debt and equity RECF returns averaging 11%-15%. The key benefit of RECF, particularly with Sharestates, is that investors can perform due diligence on individual assets and borrowers to determine their investment participation. Investors are able to view appraisal documents, lending matrices, and borrower track records and much more to determine if a loan is a good fit for them. Investors are able to diversify their portfolios based on location, asset class, borrower whereas, with a REIT, individuals are subjected to blindly investing in a pool of property types and locations.
Also, investors do not need to tie their cash up into an investment for several years. The typical Sharestates investment matures in just 12 months – at that point, investors receive the return of their principal investment.
Sharestates Versus Conventional Bank Lending
The Sharestates appeal for borrowers is that real estate developers can receive the capital they need in a fraction of the time and at a more competitive rate than they would with a bank loan. Sharestates operates similarly to other hard money lenders except the platform has much larger warehouse lines of credit to fund several loans despite the loan size.