C U R A T E D
I N V E S T M E N T S
RealtyShares Diversified Marketplace Equity Fund
.85% Management Fee
L O W F E E S
Sponsor. Asset. Market.
Less than 5% are approved
D I V E R S I F I E D
RealtyShares DME Fund vs The Competition
*Source: based on data from Fiduciary Duty and Non-Traded REITs by Craig McCann, Bloomberg Business An Investor’s Guide to Fees and Expenses 2014, and SEC Invest Bulletin: Non-Traded REITs dated Aug 31, 2015.
Pass-Through Tax Treatment
Fund Carried Interest
Most Private Funds
up to 20%
Invest in a Basket of 20+ Real Estate Opportunities
F U N D E D
F U N D E D
F U N D E D
F U N D E D
Salt Lake City, UT
Sample Investments Funded Through Platform
F U N D E D
F U N D E D
Las Vegas, NV
RealtyShares DME Fund is Here
The RealtyShares Diversified Marketplace Equity Fund will invest in a diversified pool of commercial and residential projects with a value-add approach, many of them already generating attractive cash flows.
Preferred and common equity investments in single-family residential, multifamily, retail, office, and mixed-use assets in primary and key secondary markets with populations in excess of 100,000.
Assets Diversified Across Multiple Markets
Primary & high growth secondary markets
MSAs > 100,000 for most assets, optimal population density and traffic patterns
Strong employment hubs with emphasis on transit-oriented locations
Historical Geographic Allocation Through RealtyShares Platform
Lawrence has over 15 years of experience as a corporate attorney and has also run a real estate construction business. He previously worked with AVE (acquired for $4 billion+), and on various sophisticated financing transactions with the law firms Shearman & Sterling in NYC and Cooley in its Sand Hill Road office. Lawrence also holds Series 7 and 66 securities licenses.
Don is responsible for maximizing the performance of RealtyShares' investments. Don began his career as an Asset Manager for MetLife. He then took VP roles at Sonnenblick-Goldman, Deutsche Bank and Wells Fargo Bank. Most recently at Wells Fargo, Don helped manage a $1.5 billion portfolio of Multifamily Capital bridge and RECM balance sheet loans.
Our Management Team has Underwritten and Managed $10+ Billion Dollars in Real Estate
Our Senior Team of Experts
VP OF COMMERCIAL EQUITY
Bryan has over 20 years of experience underwriting, structuring, negotiating and closing institutional-quality commercial real estate transactions. He has been directly responsible for the acquisition and development of more than $4B in office, industrial, apartment and retail projects at BlackRock, RREEF/Deutsche Bank, Hines and Archon Financial.
VP OF ASSET MANAGEMENT
Invest in a minimum of four separate property types (i.e. single-family, multifamily, retail, etc.).
Invest in a minimum of 20 separate real estate investments with at least ten separate real estate operators.
Invest in a minimum of seven separate metropolitan areas and four separate states.
What fees are involved?
How is this different than a REIT I can invest in via E*TRADE or Schwab?
Who is managing the Fund?
The RealtyShares Marketplace Equity Fund is a low fee, diversified real estate fund investing in a minimum of 20 separate real estate projects in the small-balance commercial real estate market. The Fund will be diversified not only across property type and geography but also across sponsoring real estate companies, thus offering an additional aspect of diversification not normally seen with REITs. Also, unlike some REITs where upfront fees can be as high as 15%, the Fund will charge only a .85% management fee. There will be NO CARRY. Finally, direct participation vehicles like the Fund may offer certain tax benefits that are not available through a REIT structure. By leveraging technology, we are able to significantly reduce the costs associated with sourcing and investing in real estate and are passing those cost savings on to investors.
What is your investment strategy? What types of assets will the fund purchase?
How are investments selected?
The Fund will make equity investments (both preferred and common) in real estate projects run by experienced real estate companies in the “small-balance” (<$50M) commercial real estate market, a sector that is not well serviced by larger institutional capital sources. The Fund will generally target projects with a value-add approach, where the sponsoring real estate companies have identified property upgrades or operational improvements that they believe will increase the net operating income of the properties. The Fund's objective is to invest across a diverse set of properties including multi-family apartment complexes, retail shopping centers, self-storage facilities, office buildings, single-family residences and other properties located in metropolitan areas with minimum populations greater than 100,000.
Who can invest?
How often should investors expect to receive distributions?
The target life of the Fund is 5 years; however, due to the nature of real estate, the full return of investor capital will depend on the timing of the dispositions of the various real estate investments owned by the fund.
The Fund will make quarterly distributions of cash flow to investors. When an investment is exited through a sale or refinance of the property, returns of capital and any appreciation gains will be distributed promptly thereafter.
The Fund will be managed by RealtyShares Advisor, LLC, a wholly owned subsidiary of RealtyShares, Inc. and an investment advisor exempt from federal or state registration under the Investment Advisers Act of 1940.
What are the costs or fees associated with investing?
All investments on the RealtyShares platform, and in the Fund, are reviewed by our team of investment professionals prior to approval. This review includes a detailed underwriting of the project and review of the real estate company or Sponsor offering the opportunity. Each investment must also be approved, by unanimous vote, by the Fund’s investment committee comprised of senior leadership members of RealtyShares, Inc. The Fund must also adhere to certain concentration limits relating to property type, location, minimum number of investments and Sponsor.
The Fund is meant to be a low-fee alternative to public and private REITs. The Fund will charge only a .85% management fee and there will be NO retention of any carried interest. Additional fee reductions may apply for investors contributing $1 million or more.
The project transactions will bear the usual brokerage fee for RealtyShares investments, including not only the Fund but also those raised from its crowdfunding platform; generally these fees are 2.5-3% of raised amounts. Each project also generally has certain sponsor fees charged to invested amounts; these vary among transactions. RealtyShares will also charge Fund investors an annual .85% administration fee.
What is the term of the RealtyShares DME Fund?
RealtyShares DME Fund is Here
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Testimonial statements made are not a guarantee of future performance or success. Testimonial statements are from existing RealtyShares investors. The foregoing third-party articles in outside media sources discuss RealtyShares, but RealtyShares did not approve, and was not responsible for, the content therein. Replication of such articles do not constitute an approval or endorsement of the related content. The 2% maximum investor fees are specific to investors. This does not include fees on the borrower/sponsor side. Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources that RealtyShares believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. © 2016 RealtyShares, Inc., All Rights Reserved.
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