Acquire Real Estate 2024 Review and Ranking
Awards:
Tier:
The Exited (1 out of 10 stars)
Previously #1 for core and core-plus investments.
What is Acquire Real Estate?
To avoid the financial conflicts-of-interests that are rampant on virtually every other review site, I DON'T accept any money from any outside sponsor or platform for ANYTHING (including but not limited to affiliate ads, advertising etc.). See code of ethics for more.
This company is no longer in business. Its previous review is kept below for historical purposes.
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We had been very disappointed with the trend with Acquire Real Estate this year. After having such high hopes and them ranking as high as #5 a year ago, all of the investment volume completely dried up and this year and it's rating was going to have to be removed. We had hoped that maybe they would take our previous advice about changing their uncompetitive compensation structure, but this never happened.
Then (perhaps as not too much of a surprise) it was announced that it was acquired by Realty Shares, for undisclosed terms. the old review is being left below, for historical purposes.
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It specializes in commercial real estate debt and equity, with a mix of funds and direct investments.
It is the Bentley of the industry in numerous ways. (Bentleys are ultra high-end cars, starting at a minimum of $180,000 and up).
It's one of the few crowdfunding sites to offer coveted core plus investments, which are part of the bedrock of a diversified portfolio. It's one of the few sites that puts true "skin in the game" by co-investing in every deal, which is a tremendous testament to its confidence in its due diligence. And it has numerous other first-class investor protections (with pre-funding), ultralow minimums ($2,500 versus $10,000 average), good investment volume, and the safety of $6 million of venture capital investment.
So why is it ranked only number 5? The problem is that (just like a Bentley) it costs more than competitors. It charges a base fee that ranges from 0.7% to 2% per year. Then, if the investment is successful it charges another 5% fee when capital is returned at the end of the investment. On an average investment lasting five years, this equates to an additional percentage point per year. (This would be more on shorter investments, and less on longer). So on a successful five year investment, the total Acquire Real Estate fees range from 1.7% to 3% per year (versus 1% average).
On top of this, there are additional underlying sponsor fees to consider as well. For example, a recent investments has the sponsor giving the investor a preferred 8% return, and then charging 35% of everything on top of that.
If it were not for the fee structure, Acquire Real Estate, would be ranked in the "best of the best", and possibly even #1. So we strongly hope that the site reconsiders its pricing in the future, so it can be rated higher than it is today.
Fitting for its Bentley-esque persona, Acquire Real Estate also gives away the best swag in the top 10 to it's investors. It has run generous promotions where investors get $500 for every friend they refer, or receive an iWatch for making their first investment.
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Advantages: core and core plus investments, investor protection with investing, pre-funding, ultralow minimums ($2500 versus $10,000 average), good investment volume, $6 million of venture capital.
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Disadvantages: Fees are expensive (1.7% - 3% on a successful five year investment; more for a shorter and less for a longer period) versus 1% average.This fee is paid on top of the fees the investor must pay to the underlying sponsor as well. Also, limited bankruptcy protection.
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Accolades: #1 for core and core plus investments. A top site for low minimums.
For more raw data on the site (including investor and sponsor fees, legal structure etc.), or to easily compare it with the data of competitors, see the feature by feature comparison matrix.
Where can I discuss other Acquire Real Estate deals?
You can do this with thousands of other investors in the private investor club. While the club is free, membership is restricted to investors who have no business connections to sponsors or platforms. Also, all members must agree to keep all club info confidential by signing a nondisclosure agreement. Click here to join or get more info.
Who are Acquire Real Estate Competitors?
Here are the reviews and rankings for other similar sites.
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Code of Ethics: To maintain objectivity, I do NOT accept any money from any outside sponsor or platform for ANYTHING (including but not limited to affiliate ads, advertising etc.). See code of ethics for more.
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Personal opinion only: All info is my personal opinion only as an investor. I am not an attorney, nor an accountant, nor your financial advisor. Always do your own due diligence and consult with your own licensed professionals before making any investment decision. Information is believed to be correct but may have errors, so use at your own risk. If you find an error, please let me know.
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Ratings are general: In my opinion, every investor comes from a different risk tolerance and financial situation, so there's no such thing as a single investment or platform that's great for everyone. There are many deals that aggressive investors love, which I won't touch, and vice versa. And every investor has their own way of doing due diligence. I believe there's no one right way to do it.
So, the site ratings are based on criteria which I feel are important to the broadest range of investors (transparency, volume, bankruptcy protection, etc). And even though I have my own personal, conservative, due diligence method (and talk about how the site's deals measure up in the "deep dive section"), I don't use my personal criteria as a factor in the ratings. So for example, a high ranking/rating doesn't mean that I would personally invest in a site (and vice versa). Click here to see what's in my own portfolio.
About Ian Ippolito
Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.
Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.
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This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed.