The Real Estate Crowdfunding Review
Mid-2017 mega up
date

Due to health reasons, I'd been unable to post a newsletter for several months. But now I'm back, and so much has happened that this is the biggest newsletter update ever. Here's an extremely brief overview.

Fund That Flip became just the third site to go with complete transparency and publish its performance (which was looking very good). Roof stock launched in Los Angeles. Realty Mogul updated us on the final status of their foreclosures discussed in a previous article. And, the SEC announced that Rich Uncles is under investigation for it's marketing practices.

Lots of investors are complaining about problems with their hard money loans. So we did an in-depth three-part tutorial on understanding the risks, and my personal checklist for due diligence.

 

And there have been big changes in real estate over the last several months. We covered the plummet in new-home permits, and publicized industry articles on real estate construction labor shortages, problems in hotels, self storage and apartments.

In the wider fintech industry, Prosper admitted to grossly overstating investor returns, and we did and article on why I'm dumping my P2P loan portfolio with Lending Club and Funding Circle.

And by the way, the next issue of the newsletter will be a huge one, with the newest rankings for 2017 - 2018. We are currently reviewing new sites, re-reviewing the old sites, and interviewing investors. This year, the accredited and nonaccredited options will be split into two separate rankings, to make comparisons easier for both types of investors.

Enjoy this newsletter, and have a good rest of the summer.

Ian Ippolito
Editor of the Real Estate Crowdfunding Review

Tutorials

Hard Money Loan Roulette. Part 1: What's a hard money loan and what are the hidden costs. therealestatecrowdfundingreview.com/hard-money-loan-russian-roulette-1
 
Hard Money Loan Roulette. Part 2: How to protect your money
therealestatecrowdfundingreview.com/hard-money-loan-roulette-2
 
Hard Money Loan Roulette. Part 3: A due diligence checklist
therealestatecrowdfundingreview.com/hard-money-loan-roulette3

Why this former p2p cheerleader is dumping Lending Club and Funding Circle notes as fast as I can therealestatecrowdfundingreview.com/copy-of-equity-or-debt

Why You Shouldn’t Hold Your Breath Waiting for Commercial Real Estate Prices to Fall therealestatecrowdfundingreview.com/dont-hold-breath-for-cre-to-fall

The Canary In The Coal Mine Looks Wobbly As New-Home Permits Plummet therealestatecrowdfundingreview.com/new-home-permits-plummet


Platform news


FundThatFlip is just 3rd site in industry to post performance.  And it's looking good! buff.ly/2rPW7TI

RoofStock launches in Los Angeles, it's 14th market. buff.ly/2pMpG7e

Update on the Realty Mogul investments that went into foreclosure. buff.ly/2uCdKFw

 SEC Launches Investigation of Rich Uncles NNN REIT advertising and sales of securities.  buff.ly/2tbdvCP


Industry News

Why Amazon didn't really cause your mall/retail property to go bust. buff.ly/2umO021

Prosper overstated many returns by perhaps 2 percentage points (as much as 50% for some) buff.ly/2qZJ8iO

Urban Land Institute finds lack of affordability + mismatch of housing and jobs are major challenges in real estate. buff.ly/2tnvmDo

For first time in decades, long-term trends will slow down self storage growth. buff.ly/2uiMHBB

DiversyFund giving investors 1% yield bump in July buff.ly/2sGL7VK

J.P. Morgan believes slow growth + micro recessions may extend this economic cyvle to record length. buff.ly/2rEGfB4

 Lending Club's Lost Year (And A Half): Default rates are still higher than expected buff.ly/2pBYLsw

Nationwide labor shortage is causing construction costs to skyrocket buff.ly/2qjiLE2

Bipolar commercial real estate markets suffer  continued drops at top and growth at bottom. buff.ly/2pK3bQF

“Apartment REITs Feeling Pinch of Rising Urban Supply, Declining Rents” buff.ly/2p3mxfQ

Are we in a housing bubble? 2017 bubble check in buff.ly/2ocbalj

 

Blip or trend? Commercial real estate volume dropped 20 to 25% in Q1 2017 after a 15% drop in Q4 2016. buff.ly/2o9cglV

Hotel Overbuilding Softens New York, Hurts Austin, Crushes Oklahoma buff.ly/2mkZ60T

Homeownership Rate Falls to 12-Year Low; Young Households Favor Apartments buff.ly/2npY588

VC funding in fintech (and #RealEstateCrowdfunding) dries up, challenging companies dependent on it.

Big Investors Cut Back on Commercial Real Estate as Bull Market Loses Steam buff.ly/2lnl0R7

#RealEstateCrowdfunding Investing strategies in a post-Trump election world  buff.ly/2l7wQ58


Press Mentions and site news.

We listened to your emails and now have brand new forums for investors, sponsors and platforms
buff.ly/2u2DxXu

 

USA Today interviewed me on nonaccredited investor options in RealEstateCrowdfunding. buff.ly/2lsCoHt

 

The Review was featured in Tierra Grande Magazine (one of the top business pubs in the *world* in 2016). buff.ly/2oBKyiM

 

The Review was quoted fairly extensively in the newest #Curbed article: "Crowdfunding the skyscraper" buff.ly/2mo9CYp

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The Real Estate Crowdfunding Review