Crowdfunding platforms
Concreit
Concreit is an app for investing in real estate in small amounts. Its main strategy is a fund of short-term real estate loans; a second offering gives exposure to single-family rentals with income and appreciation potential.
Money invested is pooled with other investors to acquire fixed-income first-lien mortgages spread across hundreds of loans in the United States. The fund is fully managed, so investors do not pick individual loans. The app supports auto-investment amounts and savings or income goals, and dividends accrue weekly rather than quarterly. Concreit states plainly that it is not a bank and that accounts are not bank guaranteed or FDIC insured.
Withdrawals can be requested at any time and are funded from cash on hand, income from the assets, and return of principal as loans pay off. Because those sources are irregular, withdrawals are sometimes delayed; the company says the wait is about a week in normal times and that the queue can be long in periods of heavy requests, such as a downturn.
The Cash Flow strategy is offered by Concreit Fund I LLC and is qualified by the SEC as a Regulation A+ Tier 2 offering open to non-accredited investors; securities are offered through Dalmore Group LLC, a FINRA and SIPC member. The services are operated by Concreit Fund Management LLC, an SEC-registered investment adviser, from 1201 3rd Ave, Suite 2200, Seattle. Fees are not set out on the site, so read the disclosure brochure and Form ADV before investing.
Best for
Small, non-accredited investors who want managed exposure to short-term real estate debt with weekly income and the option to request a withdrawal. Not for anyone who needs guaranteed access to their cash on a set date.
What they do
- Fractional real estate investing app
- Managed first-lien mortgage fund
- Single-family rental income equity strategy
- Weekly dividend payouts
- Auto-invest and goal setting
- Withdrawal requests funded from cash flow and loan payoffs
Details
| Attribute | Value |
|---|---|
| Licenses | SEC-registered investment adviser (Concreit Fund Management LLC) |
What stands out
- The Cash Flow strategy, offered by Concreit Fund I LLC, is qualified by the SEC as a Regulation A+ Tier 2 offering open to non-accredited investors.
- Says over 40,000 members have made more than 100,000 investments on the platform.
- States plainly that it is not a bank and that accounts are not bank guaranteed or FDIC insured.
- Securities are offered through Dalmore Group LLC, a FINRA and SIPC member; the services are operated by Concreit Fund Management LLC, an SEC-registered adviser.
- App rated 4.2 on the app store as of April 15, 2024, per the company's own disclosure.
Common questions
- How is Concreit different from a high-yield savings account?
- Concreit is not a bank and accounts are not bank guaranteed or FDIC insured. Money invested is pooled with other investors to acquire fixed-income first-lien mortgages. The company positions it as a more conservative way to invest in real estate with some short-term flexibility, aiming for a better risk-adjusted return than current bank account rates, but capital is at risk.
- How do withdrawals work?
- A withdrawal can be requested at any time. Rather than waiting for the fund to sell assets, withdrawals are funded from cash on hand, income from the assets, and return of principal when loans are paid off. Because those sources are irregular, withdrawals are sometimes delayed; the company says the wait is about a week in normal times and that the waiting list may be long in periods of heavy requests, such as a downturn.
- Is Concreit a crowdfunding portal?
- No. The company states it is not a crowdfunding portal. Its investments let non-accredited investors participate through SEC-qualified Regulation A+ Tier 2 offerings, such as Concreit Fund I LLC, and the portfolio is managed on investors' behalf rather than selected deal by deal.