Any opinion here on working for non traditional real estate companies like Realty Mogul or Peer Street?
I get that at its core, Realty Mogul, Peer Street or any of the crowdfunding companies are not too different from a traditional real estate shop or a lender. They help raise debt or equity and from a required skill set perspective, its the same old valuation of real estate- property, market, sponsor, knowing the due diligence process in a transaction. But does anybody here any have personal experiences or opinion on working for these shops? A few years ago, there were over a 100 crowdfunding companies, but as the market place could not support that many, now there are a few left like Realty Mogul, Crowd Street, Peer Street, Realty Shares, Fund Rise etc. But as these are the ones that have survived and prevailed, have they proven that they are here to stay or is it still too early and we have to wait for a downturn to see who still prevails?
My personal take was that the crowdfunding space is where CMBS was in the 90's, its new and innovative but still at the early stages. And just like CMBS, there is a value proposition for various parties- investors (opportunity to invest in a different aseet class), for the end user- it's another financing tool in the toolbox and for the lenders- its creating liquidity. But just like CMBS, it will continue to be a tool in the tool box, I am thinking it might never become the most dominant way of financing real estate.
Also, as a sidenote, I was going through the employees profiles of Peer Street on Linkedin. What is up with people who graduated college in 2014 and 15 being underwriting managers and directors of capital markets? I get that there can be title inflation in real estate, but in this case, the underwriting manager really does appear to manage a group of 25 analysts/underwriters. Dont underwriting managers typically have a decade or two experience under their belt at most shops? I get that they are are "startupy" and thats common in startups, but is this not a recipe for disaster to let a 25 year old have oversight over the underwriting standards in a business where one credit mistake can pretty much wipe you out?
Appreciate any opinions or comments, thank you!
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Just curious, for those with a background in acquisitions, what would the allure be in leaving an acquisitions gig for a similar level position with a group like Peerstreet or Realty Mogul or the like? It sounds like apples to apples for similar level positions, the comp structure is more attractive working for a reputable fund or legit owner operator/developer.
Is the "we're a well funded fintech, we'll give you stock options that will be worth millions if we hit like we expect to" pitch where these types of positions offer upside over a traditional equity or debt shop?
I am trying to figure out the same thing. I work at a decent bank right now, if I make a move to Realty Mogul or Peer Street, it is at best a lateral move, might even be a little paycut. From what I can tell the allure as you said is definitely working for a "fintech" company and the possible stock options. It is a good place to start your career when your out of college, you will be exposed to a tremendous amount of deal flow. These platforms get so many requests and the top ones only accept 2-3% of deals they get requests for, so you really to get to learn analyzing markets, sponsors, and the collaterals. Seems like it would be a great place to learn for a college graduate, but for a analyst or associate with 3-5 years of experience in the business, I am having a tough time seeing the appeal as there is just not enough of a difference in pay to justify the move.
what is peer steet's model? Appears that they dont help raise debt or lend money directly through crowdfunding like realty mogul or most of the other players? Are they like Freddie Mac for private lenders where they are essentially buying the loans, keeping them on their balance sheet and then selling them to investors?
bump. Is anybody here familiar with crowdfunding companies? Is the big four Realty Mogul, Fund rise, realty shares and CrowdStreet? Realty Mogul seems to have raised the most VC money but they appear to be awfully quiet now compared to the other platforms on Linkedin. Anybody have any insights on whether they are in trouble?
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According to a source, Realty Mogul's line of credit is not known to CrunchBase. But they take into account Realty Shares' line of credit. But anyway, Realty Mogul was clearly the #2 in the crowdfunding space after Fundrise few years ago. Looks like RealtyShares and Crowd Street have overtaken them in the last year. So, I am wondering if they are on the brink of collapse. They are just awfully quiet recently.
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