Great Neck, NY Sharestates, one of the nation’s leading online real estate crowdfunding platforms, has surpassed $1 billion in committed capital for the purchase of loans. The newest capital infusion comes from a fund that collectively manages over $15 billion, marking a milestone for the startup.
Sharestates launched its full operation less than two years ago in February of 2015. Since then, the firm has originated over $150 million in loans across more than 210 projects, with an average loan size of approximately $728,000. Sharestates’ current trajectory has it on a $25-$30 million month to month origination volume, leading it to break over $200 million in originations by years’ end.
To date, Sharestates has returned over $50 million to investors with an average return rate of 11.36% for 2016, with zero loss of principal.
Allen Shayanfekr, Sharestates“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,” said Allen Shayanfekr, Sharestates’ co-founder and CEO.
“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 new round of financing comes a few months after Sharestates received $300 million in loan purchase commitments, driven by collaborations with Prime Meridian Capital Management and Colony American Finance.
Sharestates’ most recent capital commitments will lead to increased funding capabilities, allow for new loan programs, competitive lending rates and create efficiencies in the closing process. They will also contribute to a stronger income stream for the company, enabling more technological advancements, focus on user-experience development/iteration and validation of the marketplace lending model as it applies to real estate.
Shayanfekr cited other crowdfunding sites including Lending Home, Patch of Land, FundRise, Realty Shares and Realty Mogul amongst others. “Together we are all pioneers of this incredible financial movement known as ‘Crowdfunding’, collectively striving to bring Wall Street investments to Main Street investors.”
About Sharestates
Sharestates is a real estate investment marketplace that allows individual and institutional investors to participate in rigorously vetted debt offerings. All of the offerings on Sharestates’ platform have passed through a 34-point underwriting process.
To compete in the market, Sharestates leverages proprietary technology and a close partnership with The Atlantis Organization, which – founded by Radni Davoodi and Raymond Y. Davoodi in 2004 – has become one of the nation’s leading title agencies with over $4 billion in closed transactions.
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