Concreit Raises $ 6 Million To Allow Anyone To Invest In A Professionally Managed Diversified Real Estate Fund With As Low As $ 1
SEATTLE – (COMMERCIAL THREAD) –concrete, the company open to all diversified real estate investments, today announced that it has closed $ 6 million in seed funding as part of a round led by Matrix Partners. Hyphen Capital, as well as individual investors including Jon Stein, Founder and CEO of Betterment; Andy Liu, partner at Unlock Venture Partners; and investor and advisor Ben Elowitz. Dana Stalder, general partner at Matrix, will join Concreit’s board of directors.
Today also marks the official launch of the Concrete application, which allows anyone to invest in the global multi-billion dollar private real estate market for as little as $ 1 (1). Most investors can open a Concreit account and make their first investment in minutes on their mobile device. The platform facilitates weekly earned payments, automated investments, and on-demand withdrawals, while composing weekly earned payments (2). Concreit’s first private REIT fund (3), focused on passive income, consists of low-risk residential and commercial real estate first mortgage loans, which have an annualized return of 5.47% (4) . The fund is managed by a team of industry professionals with a total of over $ 10 billion in asset management experience.
Many popular real estate platforms (âREsâ) force investors to choose properties and deals, presenting the paradox of choice. Concreit simplifies and demystifies real estate by giving investors access to simplified passive income.
âWe are democratizing the real estate investment process because everyone deserves equal access to the opportunities that can change their financial situation,â said Sean Hsieh, CEO and Founder of Concreit. âWhen I made some money in my last business, I wanted to invest it intelligently. I saw the opportunity to earn a great APR through private real estate investing, while gaining less correlation with traditional public stock or bond markets. But they only concerned commitments of capital already rich or required over several years. Concreit gives everyone access to a real estate portfolio and the ability to access withdrawals when they need them.
A better way to invest
Real estate investing has fueled some of the largest investment portfolios in the world for years (5), but many traditional real estate funds require hefty initial investments ranging from $ 10,000 to $ 100,000. Investors also need investment experience to navigate the complexities of the real estate market, preventing the majority of potential investors from participating. Additionally, traditional private fund investors typically receive redemptions on a quarterly basis at best. Concreit changes all that by making it easier customer withdrawals on demand.
The Concrete platform offers an innovative and flexible investment experience to anyone interested in capitalizing on the real estate market. It allows consumers to invest gradually; they can add money when it is convenient or financially feasible for them. They can also take advantage of automatic investment planning to help increase potential yields even faster due to the compositional attributes. Additionally, Concreit automatically reinvests dividends to help fundraising seamlessly, but unlike traditional real estate fund investors, Concreit investors can schedule withdrawals whenever they want to access their money, subject to availability and approval; dividends can be paid weekly.
The first investors multiplied by 5 on average their overall contributions over the life of their accounts (6). Given this early traction, Concreit is now ready to officially launch and promote its platform so that more consumers can take advantage.
âConcreit is my perfect way to disconnect from the Wall Street public markets and gain the potential for significant weekly dividend payouts,â said Brandon T., a Concreit investor from New Jersey. âThe automatic instant win feature is not offered by other financial technology companies. Concreit has been a fantastic addition to diversify and add to my overall portfolio. “(7)
Concreit was founded by Hsieh and Jordan Levy, a couple of serial entrepreneurs who previously founded and started the successful VoIP communications platform, Flowroute. When acquiring Flowroute in 2018, Hsieh and Levy wanted to start a business that could help ordinary people become more financially secure. Hsieh, a second generation immigrant, grew up from humble beginnings working in his family’s restaurant, where they shared the dream of achieving financial freedom through real estate.
Likewise, Levy grew up watching his parents start a small construction business from scratch. He was intrigued by the idea of ââpassive income through single-family rental homes, but became disillusioned with the overheads, risks, and hassle of managing his own single-family rental investments. Based on these formative experiences, as well as their technological expertise, Hsieh and Levy set out to design a mobile first offer that could allow small investors to benefit from real estate without having to carry out repairs at 2 a.m. Saturday. With Concreit, people enjoy the financial benefits of real estate investing without the complications.
âWhat Concreit has built is incredibly difficult to achieve from a technological and regulatory standpoint, but Sean and Jordan are absolutely committed to making it not only a viable platform for investment, but an exceptional and rewarding experience,â even for the most novice passive investors. Said Dana Stalder of The Matrix. âThe economics speak for themselves and the flexibility that Concreit offers should motivate anyone to get into real estate investing. ”
concrete opens up the opaque world of private real estate investment to the masses. Its free mobile app allows consumers to invest as little as $ 1 in a fund managed by a team of investment professionals. Withdrawals can be requested at any time through the app and sent after approval, making it easier for investors to reach their financial goals than ever before. Concreit is based in Seattle and backed by leading fintech experts and technologists including Matrix Partners, Hyphen Capital, Jon Stein, Andy Liu, and Ben Elowitz.
Securities offered by Dalmore Group, LLC, member of FINRA & SIPC.
Investing in real estate involves risks, including the potential loss of capital. A real estate portfolio is subject to risks similar to those associated with direct ownership of real estate and real estate debt, as investments are sensitive to factors such as changes in real estate values ââand property taxes, interest rates, underlying real estate cash flows. real estate assets, supply and demand, and management skills and creditworthiness of the issuer and borrowers. Portfolios focused on real estate assets may experience price volatility and other risks associated with non-diversification. Real estate investments in the United States can also be affected by tax and regulatory requirements. Economic factors, market conditions and investment strategies will affect the performance of any portfolio and there can be no assurance that a portfolio will match or outperform any particular benchmark. There can be no assurance that the investment objectives will be achieved and past performance is no guarantee of future results. Concreit is not a bank and does not provide FDIC insured accounts.
On-demand withdrawals mean that investors can request withdrawals at any time, subject to the manager’s approval.
Concreit Fund 1 LLC is currently a private equity real estate fund that intends to opt for REIT status when eligible.
The annualized return was calculated from July 1, 2020 to July 1, 2021 of investments in Concreit Fund I LLC, a private real estate fund.
Edward N. Wolff. National Bureau of Economic Research. “Trends in Household Wealth in the United States, 1962 to 2016: Has Middle Class Wealth Recovered?” Â»November 2017. https://www.nber.org/papers/w24085
This data has been averaged for all investors who registered from July 1, 2020 to August 31, 2020 and calculated through May 31, 2021.
The people who provide the testimonials on this website have experience with the services provided by Concreit. Their respective experience with Concreit may not be representative of all other Concreit customers. Testimonials are not paid for by Concreit. Testimonials are not a guarantee of future performance or success with any product, transaction or service.