iFunding 2024 Review and Ranking

What is iFunding?

 

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.

iFunding is now insolvent, and has been removed from the rankings. Additionally, in October 2018 the SEC charged iFunding with fraud and misappropriation of $1 million of investor money for personal use. 

update on 9/3/2017: investors are reporting that the vote was successful and the backup administrator has been put into place, so that the iFunding bankruptcy will not drag down their investments as well. Additionally, the improperly set up LLCs have been separated into individual investments.

Update on 8/7/2017: investors are reporting that IFunding is insolvent. Unfortunately, this isn't a huge surprise to site readers, based on all of the problems we've reported.
 
Investors say that the company did not properly set up the bankruptcy protection, and the individual investments are not corralled into separate LLCs as they should be. This could potentially cause investors to take losses on their own investment, caused by an investment they didn't even invest in.

Also, if nothing is done, their investments will be sucked into the bankruptcy proceedings, as well as have no one managing or overseeing them for an indefinite amount of time before hand.
 
Investors are hoping that a backup administrator can come in and take over the administration of the investments. Other sites specify such an administrator in advance, so that there are no problems. Ifunding did not.

Investors say that a group claiming to be doctors who own a large amount of ifunding investments, have offered to take over. So investors must vote on allowing this or not. if the vote does not succeed, the investments will most likely be stuck in limbo and will go down with the ship into bankruptcy proceedings with iFunding.

Update on 6/23/2017: investors are reporting that phone calls to iFunding are not being answered. No new deals have been posted in several months or more. Rumors say CEO William Skelley, may no longer be with the company.

Update on 4/25/2016. Ifunding is the subject of 2 separate lawsuits. One from an investor and one from a sponsor. Additionally, an industry insider claims that their General Counsel resigned.

 

iFunding specializes in both commercial and residential real estate investments, including both debt and equity. It has superior bankruptcy protection, and also boasts $4 million in venture capital.

 

Unfortunately, it was also the site that had the most negative feedback from investors.

 

Several investors claimed (via direct feedback and a posting on an investor site called Bigger Pockets), that an investment in Milwaukee failed to pay the promoted principal plus return by the promised deadline in 2014. (Investors said that the sponsor was a flipper who was unable to sell the property at the projected price. The investment was converted to a rental, which is returning a much smaller periodic return and has an unknown date of final full return).

 

Please note that no marketplace guarantees any of the investments, including iFunding. At the same time, the market is not yet in a down cycle, so reports of a "zombie investment" like this one are currently very rare (this was the only one).

Another investor said he had a bad experience with a different investment on Ifunding which caused him to "not use the site again". He claimed that his investment did not pay back the promoted principal plus return in August 2015, and he was unsuccessful getting Ifunding to talk about the problems or address when they would be resolved. Ultimately he got "more or less "his promised return. But the lack of customer service has caused him to look elsewhere for investments.

 

We would love to hear feedback from iFunding on their side of the story on the above two issues. Unfortunately, iFunding told us that they could not publicly comment on any investments, due to regulation 506B. This regulation prevents a company from discussing investments with the general public, and limits communication to those with whom they already have an existing relationship.

506b was intended to protect consumers, and so we are disappointed that an unintended side effect of it is that consumers will not be able to get full information on what happened, to make up their own minds. We hope that iFunding can find some way to legally increase it's transparency, to publicly address any outstanding issues and concerns.

 

Update January 14, 2016: Ifunding is being sued by one of its sponsors, CapStack, for "breach of contract, breach of fiduciary duty, fraudulent inducement, fraudulent concealment and deceptive business practices". Click here for more details.
 

• Advantages: superior bankruptcy protection, $4 million in venture funding.
   

• Disadvantages: Investors told us that investments on the site had not performed as promised. Due to 506B restrictions, the company could not respond with their side of the story.
   

• Accolades: None

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*Starred sites are tied and are shown in alphabetical order.

 

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.

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Where can I discuss other iFunding 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 iFunding Competitors?

Here are the reviews and rankings for other similar sites.

 

• CrowdStreet

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• CityVest

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• Instalend

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• All other sites (ranked and reviewed)

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