ShareStates

ShareStates

ShareStates

ShareStates

We connect private investors and institutions with real estate developers and owners who want to raise capital for their real estate projects.

Highlights

4.5% - 12%

Asset Class Return1Y

#35 Rank

In Real Estate30d

avatars

Invest from

$5K

Overview

Individual accredited investors can access a large marketplace of institutional quality mortgage loans that have been sourced and underwritten by industry leaders. As an individual investor, you'll be participating side-by-side with large institutions in the same quality product. You can even set up auto-invest to manage your investment strategy - delivering peace of mind that you're never missing an opportunity.

Things to Know

  • You make money on

    Interest

  • Fees

    2%

  • Min Investment

    $5,000

  • Payout frequency

    Monthly

  • Term of investment

    6-24 months

  • Target Return

    8% - 12%

  • Liquidity

    Moderate

  • Open to

    Accredited Only

  • Mobile Application

    No

Top Perks

  • 8-12% annually with immediate cash flow!

  • Consistent passive income for investors.

  • Quality mortgage loans that have been sourced and underwritten by industry leaders.

How you make money

Investors can choose from one of two types of investments: Common Equity: If you invest in common equity, you own a part of the company that you invested in. You may receive distributions throughout the life of the investment. In some cases, you won't see a return until the developer sells the building. Sharestates will divvy up the profits among each investor accordingly. Debt: If you invest in debt, you lend developers the money to purchase real estate. You make money based on the interest paid on the mortgage (monthly) as well as a lump sum (balloon payment) at the end of the term.

How ShareStates makes money

For debt loans Sharestates charges Borrowers 8-14% interest rate. Additionally Sharestates charges 1%-5% origination fee to each issued loan. Investors are charged a 2% annual managment fee on thier invested capital.

Is it safe?

Default Risk — Investments are neither FDIC insured nor equivalent to bank CDs or Treasury notes. Inflation Risk — Similar to bonds (since there’s a fixed rate), you have the risk of inflation eating at your returns. However, with the high rate of return, this risk is reduced. Liquidity Risk: Loans are typically held for the duration of the term Economy Risk — Another recession will more than likely increase overall defaults of individuals within ShareStates. This would cause your return to decrease. In the unlikely event that Sharestates were to go out of business, investors are protected. Sharestates uses a remote bankruptcy structure to safeguard private investor assets. To date, Sharestates had zero loss of principal on their projects.

  • Established

    2012

  • Country Available

    US Only

  • Assets Managed

    $845M

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