Concreit

Overview

Concreit is an easy-to-use real estate investing app that lets you buy shares of their first private REIT for as little as $1. The REIT invests in private loans that are backed by real estate and Multi-family real estate located in the United States. The Concreit experience is a flexible and easier investment product by being a simple investment app. You can quickly invest in a diversified portfolio filled with real estate properties and loans collateralized by buildings.

Why Invest

• Professionally managed real estate profile that pays dividends
• Minimum investment only $1
• Easily access to your funds

How you make money

Investors are buying into a portfolio of income oriented real estate assets. Investors buy shares of a non-traded REIT fund, Concreit Fund I LLC (CF1), that includes a redemption (withdrawal) program. CF1's portfolio has a mix of debt instruments secured by residential & commercial real estate and a mix of other dividend yielding real estate investments. The aim for CF1 is to provide consistent returns and alternative ways to hedge against inflation.

Like a dividend-paying stock, Concreit provides steady monthly dividend income (under normal circumstances). Your dividends are automatically reinvested. You will also benefit from the increasing property value over time. This can result in higher dividend payments due to rent increases or if the property is sold.

How Concreit makes money

Investors are charged a 1% annual fee for asset management of their portfolios. There is a Profit Split when investing Concreit. The split is of the remainder of profits after all fees to management, potential returns to investors, and cash set aside for the liquidity reserve fund. Concreit still strives to pay out a 5% preferred return net of fees before any other bonus’ and features of their program. 

There is also a withdrawal fee that is a combination of a pass through ACH fee and redemption fee. If your investment was held for less than one year, you will be charged a redemption fee and ACH fee. The redemption fee reduces your net dividends received by 20%. If your investment has been held for more than one year, investors only get charged an ACH fee. The ACH fee is 10bps (.10%).

Is it Safe?

All data on their servers are encrypted with AES 256 bit encryption, the same as what top banks use today. Your investments are asset-backed by real estate or invested in it. When it comes to direct loans that they make, they look for greater appraised liquidation value than the amount they lend out in an effort to protect your principal. They are not a bank, nor a broker dealer. Therefore, investments through Concreit do not qualify for FDIC or SIPC insurance.