Who Can Invest Using RealtyReturns?
RealtyReturns is open to all American and foreign investors who want to diversify their portfolio with screened real estate investments. Our members include individual investors (both accredited and non-accredited), family offices, institutional investors, registered investment advisors, hedge funds, banks, asset managers and private equity funds.
Title III of the JOBS Act was implemented in May of 2016 and allows both accredited and non-accredited investors to participate in real estate crowdfunding investments.
What Happens to My Investment if RealtyReturns Goes Out of Business?
If RealtyReturns.com files for bankruptcy, any asset backed investment would remain. It would be uncertain if any loan structure investments would be continued but we would do our best to honor and find another firm to continue them. There is no guarantee that another firm will be found and investors might lose their entire investment.
How Does The Investment Process Work?
All investors can sign up at RealtyReturns.com for a free membership. Once they have verified their email, they have full access to the RealtyReturns platform and access to all investment opportunities.
Members can browse all investment opportunities, read detailed information on each investment and invest in under 10 minutes using their checking account. Once all the investor documents have been signed and the funding goal is reached, the money is transferred to the specific investment from escrow and all investors are updated when new updates or dividends are available.
Note: Although we strive to pick the most promising investments for our members, we cannot gurantee that our investments will earn any distributions,
Note: Investing is high risk. Make sure you fully understand all of the risks before making an investment.
Is My Investment Liquid?
The investments on RealtyReturns are private real estate transactions and are not traded on any public stock exchanges. This makes them difficult to be easily traded or sold.
You should not invest on RealtyReturns with the expectation of reselling your investment to a third party.
What is RealtyReturns?
RealtyReturns is a real estate crowdfunding platform that will allow both accredited and non-accredited investors to participate in debt and equity real estate investments for as little as $1,000.
RealtyReturns was founded by a successful group of real estate investors & developers with over $1 billion in real estate projects. We work directly with property developers as well as real estate brokers to find only the highest quality investment opportunities.
Our debt investments offer investors an expected constant interest rate that is secured by physical real estate (backed by deed of trust). Our equity investments provide investors the potential opportunity to co-own a piece of real estate and participate in the performance and future upside of the property.
When Will I Get My Money Back?
Every property and investment has different hold periods. This can vary depending on the type of investment, property type and/ or loan structure.
A hold period is the amount of time that an investor needs to hold an investment before any gains or losses will be seen. It is very important to understand the offering documents well to determine an approperiate hold period estimate for each investment. Investment returns can vary and there is no guarantee that a specific investment will be profitable.
What is The J.O.B.S Act?
On April 5, 2012, the Jumpstart Our Business Startups Act (J.O.B.S Act) was signed into law by President Barack Obama. The JOBS Act was signed with the intention of putting more capital in American startup companies to stimulate job growth. Of the seven Titles, Title III, also known as Regulation CrowdFunding, is the most notable.
Title III was implemented on May 16th, 2016 and allows startups to raise money from both accredited and non-accredited investors. Implementation of Title III has already had a significant impact on the equity crowdfunding landscape; opening up 97% of the U.S. market to investment by ordinary Americans.
Photo of Barack Obama Signing the JOBS Act (2012)
How Do Investments Get Listed on RealtyReturns?
We have a strong network of real estate developers, companies, property managers and individuals who list their investment opportunities on RealtyReturns.com. Before we accept any investment opportunities, a detailed application must be filled out by the borrower as well as due diligence and underwriting processes.
The RealtyReturns team strives to understand the unique complexities of each investment opportunity, including market statistics, property location analysis, track record of the real estate firm and return timeframe estimates. All of these aspects go into our decision of whether or not an investment opportunity is listed on our platform. We focus on finding investment opportunities that return cash back to our investors as quickly as possible.
How Am I Updated on the Status of My Investments?
New information on your investment, when available will be posted on the investment dashboard. You will also be notified when any distributions are available and deposited into your bank account.
Can I Invest Using my IRA?
We do allow debt investments to be made through a self-directed IRA account but it can depend on the procedures or processes that your custodian uses. Custodians must be able to process electronic document signatures and be able to process contributions as ACH transfer payments. We have found that some custodians may not be able to meet these requirements and unfortunately prohibits their clients from investing. Please check with your custodian to see if they meet the two requirements.
What Types of Investments Does Realty Returns Offer?
RealtyReturns.com currently offers the following investment opportunities:
Equity Investments: This investment type focuses on investments with current cash flows such as office buildings, apartment complexes, shopping centers and storage facilities. Investor capital is pooled together to purchase specific properties that meet our specific requirements. Investments of this type are managed by a "Sponsor", which is a professional real estate management company with a strong track record of managing real estate properties. Investors participating in this asset class usually share in any cash flows (from rents and other proceeds) when the property is sold. Holding periods for an equity investment can range from 1-10 years.
Real Estate Loans (Debt): This investment type focuses on investment loans. All loans are backed by a commercial or residential property and are secured until the loan is repaid in full by the borrower. All investors earn monthly interest payments on the loan, usually with a balloon payment at the end. Holding periods for real estate loans can range from a few months to a year or more.