General FAQ

What is Sharestates?

Sharestates is an online marketplace lending and investing platform, also known as real estate crowdfunding. We...

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When was Sharestates founded?

Sharestates was founded in August 2013 by Allen Shayanfekr with brothers Radni Davoodi and Raymond...

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Which legislation is Sharestates operating under?

Reg D, Rule 506c allows Sharestates to raise an unlimited amount of money for real estate...

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In what geographic areas does Sharestates operate?

Sharestates lends across the United States, covering 42 states excluding Alaska, Minnesota, Nevada, North Dakota,...

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How do I get started with Sharestates?

It’s easy to get started with Sharestates. Register online at www.sharestates.com. The two-step process takes less...

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What is marketplace lending?

Marketplace lending uses online platforms to connect borrowers with investors willing to offer loans. It offers...

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What is Real Estate Crowdfunding?

Real estate crowdfunding is the pooling of multiple investors’ money for projects related to the sale or...

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Who can invest at Sharestates?

U.S. Investors Currently, real estate investing opportunities at Sharestates are open only to accredited investors...

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What if I was non-accredited and now I am accredited?

If you signed up with Sharestates as a non-accredited investor and have since become accredited,...

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What are the investment minimums?

For U.S. investors, investment minimums start at $5,000 per investment. For a non-U.S. investor, our...

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What is Sharestates’ underwriting process?

Sharestates puts each real estate investment project through a 34-point underwriting and risk assessment process....

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How does investing with Sharestates work?

Investing in Sharestates’ real estate loans is very simple. Go to our Investments page to view our...

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Is real estate a good investment?

Historically, real estate has outperformed the stock market. That's why it is considered one of...

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Is crowdfunding really the best way to make money in real estate?

Sharestates does not provide investment advice. However, we understand that market forces change over time....

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Do investors make money on property appreciation?

Yes. In common equity projects, private investors make a profit if the project sells for...

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What do I own when I invest in real estate through Sharestates?

Sharestates offers two types of investments: Borrower payment dependent notes (Notes) and Limited Liability Company...

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Am I guaranteed a return on my investment?

Sharestates cannot guarantee any returns, and past returns are not indicative of future returns. However, Sharestates performs...

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What is the average real estate return on investment with Sharestates?

Returns on investment can vary. Every real estate investment carries some risk, and it's possible...

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What is a preferred return?

A preferred return can vary in detail, but the basic idea behind it remains the...

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What is a grace period for loans?

A grace period is the amount of time after the due date before penalties are...

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What is a past due loan?

A past due loan is one where the borrower (Sponsor) has not made a payment...

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What happens if a Sponsor defaults on a loan, or if a project does not get completed?

If a sponsor defaults on a loan, then Sharestates may pursue foreclosure. Any money recovered...

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What are Sharestates’ default rates?

You may view our loan performance on our Statistics page:  https://www.sharestates.com/statistics. A majority of this data...

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What are judicial and non-judicial foreclosure states?

If a borrower defaults and Sharestates begins the foreclosure process, the time a foreclosure takes...

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What happens if I want to sell my notes or units?

Unfortunately, there is no secondary market for real estate crowdfunding because the notes and units...

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Why should I trust Sharestates with my money and my investments?

Based on our extensive real estate experience, Sharestates has created a strict 34-point underwriting and risk...

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Is Sharestates secure?

Sharestates uses the highest website security encryption standards among marketplace lenders. That's why real estate...

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What happens if Sharestates goes out of business?

In the unlikely event that Sharestates were to go out of business, investors are protected....

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What is the difference between a REIT (Real Estate Investment Trust) and real estate investing with Sharestates?

REITs are blind pools of investment properties with little transparency and generally carry high fees....

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What is a defaulted loan?

A defaulted loan is one in which the borrower has not made a payment in...

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What fees are shared with investors?

Sharestates will distribute any collected default interest to investors. Default interest starts accruing when a...

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Is Sharestates open to foreign investors?

Yes, Sharestates is open to foreign investors (also known as “non-U.S. persons”). To be eligible...

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Do non-U.S. citizens need to be accredited?

No, you do not have to be accredited, but we do require all foreign investors to...

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Can foreign investors from any country invest?

All foreign investors are able to invest in loans from Sharestates, except for foreign nationals...

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Are foreign investors taxed?

Each investor should consult their own tax advisor. Sharestates does not provide tax or legal...

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What do I need to qualify as a borrower with Sharestates?

A borrower (aka “Sponsor”) can be a real estate developer, a real estate rehabilitator, or...

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What is the funding process with Sharestates?

There are two ways to submit a real estate project for consideration. Following application submission, allow one...

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What are the interest rates? Are there any additional fees?

For debt loans Sharestates charges 8-14% interest rate. Additionally Sharestates charges 1%-5% origination fee to...

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What types of projects does Sharestates finance, and what loans are offered?

Sharestates finances all asset classes (residential, multi-family, and commercial). We are ready to offer loan...

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What is the maximum I can borrow from Sharestates?

Our loan amounts range from $100,000 to $5,000,000.  On certain property types, we can lend...

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What is the typical maturity period for loans?

The typical maturity period with Sharestates is 12 months. On a case-by-case basis, two 6 month...

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What payment schedules are available?

All loans are interest only balloons.

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How long does it take to get funding?

On average, funding can take 15-30 days. Closings can be as fast as 5-7 days,...

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What is the Sharestates real estate crowdfunding process?

The Sharestates crowdfunding process is very similar to any other funding option via Sharestates. This...

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What kinds of loans does Sharestates offer real estate developers?

We are ready to offer the below program types to qualified real estate borrowers: Hard...

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