Real estate crowdfunding platform, Sharestates, announced on Tuesday it has successfully raised $1.3 billion in committed capital for the purchase of loans. Launched in February 2015, the funding website has originated more than $150 million in loans for over 200 projects, with an average loan size being $728,000.
To date, the company has reportedly returned more than $50 million to investors with an average return rate of 11.36% for 2016. There was also zero loss of principal, and its current trajectory is $25-$30 million month to month origination volume. Allen Shayanfekr, Sharestates’ co-founder and CEO, stated:
“The process to onboard these funds was extremely difficult – requiring multiple site visits, third party reports, and vetting of our entire operational process from application to post closing practices. Our team received great scores on each of the various aspects of the audits, enabling us to continue to grow our platform and brand.”
This news comes just several months after Sharestates received $300 million in loan purchase commitments, which was driven by collaborations with Prime Meridian Capital Management and Colony American Finance. Shayanfekr previously noted:
“Institutions, like Colony American Finance and Prime Meridian – as well as accredited individual investors – are looking for partners in this space that have large pools of qualified borrowers to select from and track records that reflect superior underwriting. These loan purchases will enable us to offer frequent opportunities for investors to diversify, while also giving individuals the increased confidence that comes with investing in the same deals as accomplished institutional firms.”
“We are thrilled to expand our presence in the marketplace lending space by partnering with a market leader like Sharestates, which has demonstrated expertise in both deal-sourcing and underwriting.”
Prime Meridian managing director, Peter Lowden added:
“There are only a handful of platforms in the real estate marketplace lending space that have shown the ability to source and identify some of the strongest borrowers and best projects, which is the key to consistent results. Sharestates’ track record for delivering value-added returns makes it an attractive platform for purchasing loans.”