Purchase of key industry player expands iintoo’s foothold in the
U.S., making commercial real estate investing accessible to 200,000
registered investors from 100 countries
NEW YORK–(BUSINESS WIRE)–iintoo,
a global real estate investment network with nearly $200 million raised
since its launch in 2015, recently purchased assets of RealtyShares as
part of a joint venture that accelerates iintoo’s growth – increasing
its portfolio size from $1 billion to $2.5 billion in assets under
management. The purchase, from one of the largest U.S. online real
estate platforms, catapults iintoo into a market leadership position,
enabling more investors to benefit from the company’s disruptive
approach to crowd-sourcing real estate investments, which has yielded
16.63%* average annual returns on exited investments. With this
acquisition, iintoo will reach a community of 200,000 registered
investors, offering them the opportunity to access premium, highly
vetted deals under the company’s expert management.
“This event is a watershed moment for iintoo, the industry and
investors. The real estate business has historically been an exclusive
club, lagging in technological innovation and accessibility for retail
investors, but in the last five years, we have seen significant
disruption led by forward-thinking startups. Our platform and approach
have allowed individual investors to gain access to premium real estate
investment opportunities while providing the industry’s first equity
protection program,” said Eran Roth, CEO of iintoo.
RealtyShares was the second largest online real estate investment
platform in the U.S. before ceasing to take on new deals last year. At
the time, the company had 300 active projects and approximately $400
million in equity from its investors. In order to oversee RealtyShares’
assets, iintoo has formed a joint venture with RREAF
Holdings, LLC to take over
management activities for the active investment portfolio. All of
RealtyShares’ former and current investors will now have access to
iintoo’s platform and investment opportunities. “We are excited to bring
RealtyShares’ investors into our community and offer them professional
oversight and management of our highly vetted commercial grade real
estate opportunities,” Roth said.
iintoo’s unique approach offers individuals a frictionless means to
invest in commercial-grade real estate deals – with greater simplicity,
transparency and risk mitigation measures. With investment opportunities
starting at $25,000, iintoo delivers hands-on project oversight,
short-term investment periods for greater liquidity, a rigorous,
data-driven vetting process to identify and offer the most promising
investment opportunities and equity protection** on their investment.
Investors also have access to a social community where they can interact
and learn from one another and follow savvy investors to see how their
investments have performed.
Crowd-sourced funding opens new avenues for financing real estate for
property owners and developers alike. The iintoo investment portfolio
includes income-generating multifamily properties, commercial real
estate, retail and mixed-use properties, with a focus on projects in
developing cities, as they have proven to perform well despite economic
downturns. The RealtyShares acquisition propels iintoo into a leading
position in this market category, enabling the company to accelerate its
global presence in the years ahead.
“The iintoo model has transformed the way people think about and invest
their money, said Shoshana Winter, iintoo’s Managing Director in the
U.S. “Our vision is to take the success we have seen to date and
continue to offer new and alternative asset classes to our expanded base
of investors. We are confident that our innovative investment platform,
our equity protection product** and our data-driven, curated approach to
delivering premium investment opportunities will make us a leading brand
that investors can depend on as they seek new ways to diversify their
portfolios.”
About iintoo
iintoo is a New York-based social investment network founded in 2015,
specializing in exit-oriented real estate investments. Since inception,
iintoo has raised $200 million in equity for real estate investments,
through its digital platform, with assets under management of
approximately $1 billion. With the addition of RealtyShares’ assets,
iintoo will have a gross asset value of $2.5 billion under management.
Through iintoo’s platform, accredited investors have direct access to
premium commercial-grade real estate investments, an asset class once
exclusively available only to professional funders and high net worth
individuals. iintoo’s REIMCO (Real Estate Investment Management Company)
model combines iintoo’s unique management approach, offering investors
hands-on oversight of every opportunity from day one through exit, with
short investment periods so investors can realize liquidity sooner, and
a rigorous, data-driven vetting process designed to curate deals with
the highest potential yields. In October 2018, iintoo launched epiic
(Equity Protection Investment Community), the first-of-its- kind real
estate investment product that provides equity protection** for
accredited investors. Supported by an affiliate of Everest Re Group,
Ltd. (NYSE:RE), a leading international reinsurance and insurance
organization with operations that span the globe, and a social community
pool, Epiic offers two layers of protection for investors’ principal.
Among iintoo’s shareholders are Meridian Capital, the largest private
mortgage broker in the United States and Everest Re. For more info
visit: https://www.iintoo.com/
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* The exit annual yield is equal to the ratio between the total profits
from the equity investment (before tax) and the total raise (amount
invested by iintoo’s equity investors in the project) divided by the
investment term.
**When we refer to “Equity Protection” we are referring to an
arrangement where iintoo epiic GP LLC, the general partner of each
covered issuer (“Covered Issuer”), promises that, even in the event the
underlying project is not profitable or records a loss, the investor in
the Covered Issuer shall receive a specified amount equal to the
original principal investment he/she/it provided (less other amounts
already received by such individual investor during the course of the
investment) subject, however, to significant limitations including but
not limited to repayments for losses in the Covered Issuer are only made
up to a maximum amount of funds available from the retention account and
the policy (where such policy limit may be less than the total amount
invested), repayments are on a first come, first serve basis, and losses
are aggregated across Covered Issuers subject to the same retention
account and policy. iintoo epiic GP LLC, and not investors, is a party
to the policy with Everest Insurance®. As a result, investors have no
direct legal rights under the policy. In addition, beyond use of the
Equity Protection proceeds from the retention account and the policy,
neither iintoo epiic GP LLC nor the Covered Issuer has any obligations
to indemnify investors for losses. For more information, please see
“Business of the Company—Equity Protection” and “Risk Factors—Risks
related to the Equity Protection” in any of our issuers’ private
placement memoranda.
The above may contain forward-looking statements. Actual results and
trends in the future may differ materially from those suggested or
implied by any forward-looking statements in the above depending on a
variety of factors. All written and oral forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the previous statements. Except for any
obligations to disclose information as required by applicable laws, we
undertake no obligation to update any information contained above or to
publicly release the results of any revisions to any statements that may
be made to reflect events or circumstances that occur, or that we become
aware of, after the date of the publishing of the above.
Contacts
Katie Vroom
Affect
T+1 212-398-9680
[email protected]
