GREAT NECK, N.Y., March 17, 2016 /PRNewswire/ -- In slightly more than a year since launching, Sharestates, an online marketplace for real estate investors, has crossed the $100 million mark in loans originated. In reaching this milestone, the company has funded more than 100 deals, while producing an average net annual yield of 10.4 percent. And overall, Sharestates has returned more than $21 million to its investors with zero loss of principal.
To evaluate each loan and borrower, Sharestates undertakes a 34-point underwriting process that focuses on the project's financial profile and property fundamentals as well as the borrower's track record. All Sharestates loans are secured by the property and the personal guarantee of the borrower.
"Our most significant statistic is that we have zero loss of principal, thanks to our underwriting experience and selectivity," said Allen Shayanfekr, Sharestates' co-founder and chief executive officer. "But this milestone would not be possible if not for the persistence and dedication of our industry peers as well. As crowdfunding finds its place as a global investment vehicle for the general public, we are all working towards the same goal; I'm honored to be a part of this monumental financial movement."
To determine the interest rate charged to each borrower, Sharestates uses a custom and transparent grading system that is available for each investor to calibrate a strategy according to risk tolerance and goals. Because Sharestates' underwriting department approves roughly two percent of the loan applications it receives, its loan portfolio includes some of the most attractive short-term real estate opportunities on the market.
"Individuals looking to benefit from the types of returns offered by real estate should be able to decide exactly what properties they want to finance with their capital," Shayanfekr said. "By combining individual investors, institutional capital and intense due diligence, a crowdfunding platform like Sharestates delivers tangible benefits to accredited investors, institutions and borrowers, who are all looking to maximize returns.
"When accredited investors place their capital in loans through Sharestates, they have confidence that comes from knowing they're investing alongside multiple institutional investors – at the same terms."
Sharestates is a real estate investment marketplace that allows individual and institutional investors to participate in rigorously vetted debt and equity offerings.
To compete in the market, Sharestates leverages proprietary technology, industry-leading underwriting expertise and a close operating partnership with the Atlantis Organization, which – founded by Radni and Raymond Y. Davoodi in 2004 – has become one of the nation's leading title insurance and real estate services agencies. This partnership provides Sharestates with access to an expansive network of real estate developers, investors and lenders, cultivated over the course of more than $4 billion in transactions that Atlantis has managed over the years.
Since Sharestates launched in 2014, it has closed more than $100 million in origination, across dozens of loans, with zero loss of principal and net annualized returns ranging from 10 to 20 percent. For more information, please visit http://www.sharestates.com.