Tuesday, January 15, 2019

Broadmark Real Estate Management Relaunches Broadmark Real Estate Lending Fund II on Real Crowd

Adam Hooper
 Portland, OR (Jan. 15, 2019) – Broadmark Real Estate Management II, LLC (“BREM”), a private lender serving small to mid-sized builders and developers in the Mountain West, has relaunched its open-ended fund, “Broadmark Real Estate Lending Fund II” (“BRELF II”) on RealCrowd, one of the nation’s leading direct investment online real estate platforms.

The fund, which currently has $359 million in AUM, underwrites short-term, first position loans to finance real estate transactions in Colorado, Utah and Texas. 

 Investors are immediately diversified across the entire portfolio of 125 conservatively underwritten loans.

“Our platform is unique among crowdfunding providers based on the ability for investors to establish a direct relationship with the real estate sponsor,” says Adam Hooper, Co-Founder and CEO of RealCrowd.

“Many of today’s crowdfunding sites function like a hedge fund, which can drive up fees on both sides. To keep costs low and give everyday accredited investors access to institutional-quality investments, RealCrowd serves as a direct marketplace where these entities build new relationships.”

Adam J. Fountain
  BRELF II has generated annualized returns in excess of 11-percent since inception.

“There is a significant gap in the market for short-term real estate financing,” says Adam Fountain, co-owner of BREM. “Short-term loans are typically used to develop, renovate, or improve a commercial or residential property.

"We are satisfying an unmet need for short-term financing while offering an investment product poised to deliver strong risk-adjusted returns to our investors for the long-term.”

Mr. Fountain notes that many smaller regional banks, which in the past provided short-term debt, were forced to close their doors or were absorbed by larger banks following the 2008 financial crisis.

“Small regional banks that survived the Great Recession rarely provide short-term financing in the current market as a result of more restrictive regulations,” says Mr. Fountain. “This creates a gap in the credit market and an opportunity for us and our investors.”

Broadmark Real Estate Lending Fund II is targeting a fundraise of approximately $10 million through the RealCrowd crowdfunding platform.

"To date, our firm has raised more than $30 million in capital through the RealCrowd platform.”

RealCrowd also has a high bar for approval to be featured on its marketplace. The firm ensures that each real estate Sponsor on its platform has more than 10 years of principal-level experience and more than $50 million in transactional history, while also ensuring that each investor is accredited.

RealCrowd is one of the nation’s leading direct investment online real estate platforms. As one of the first real estate equity crowdfunding companies, the firm has hosted more than $4.5 billion in real estate offerings through its platform, spanning more than 170 investments across 38 states.

Headquartered in Portland, Oregon, RealCrowd is backed by venture capital seed accelerator Y Combinator in 2013.


Lexi Astfalk / Jenn Quader
Brower Group Inc.

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