Interesting in investing in commercial real estate? Cadre.com is platform that allows you to build your own commercial real estate portfolio. To learn more about this, continued reading below.
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CadreQuick Facts
| Investment Offerings | Equity, preferred equity, debt interest |
| Property Types | Commercial |
| Minimum Investment | $50,000 |
| Time Commitment | 5 to 8 years |
| Advertised Returns | 10% to 15% |
| Availability | Accredited investors only |
| Management Fees | 2% to 5% |
PROS
- Industry-leading due diligence
- Deep alignment with investors
- Standalone investments or managed portfolio
- Secondary market adds liquidity
CONS
- Only open to accredited investors
- High minimum investment
- Low deal flow
Cadre Investment Offerings
Cadre offers commercial real estate investments in multi-family apartment buildings, office spaces and hotels, as well as a portfolio of 15-20 properties across 15 markets. However, there is a minimum of $50,000 to invest and must hold for five to eight years.
You can choose your own investments or enroll in Cadre’s Managed Portfolio where your money gets divided equally into the next five projects.
Cadre Features
Cadre has multiple features to take advantage of such as:
Due Diligence
The team at Cadre is experienced and provides a reasonable step process to choose the best real estate deals in the best markets.
Sponsors and individual real estate projects must meet the requirements in order to get considered by Cadre. The company uses quantitative analysis to identify and predict which markets have the best chances of success. Because of this, only about 2% of the deals are listed on Cadre.
Performance
Cadre does not have much data on their returns because not a lot of investments have gone the full cycle. However, the ones that have matured made investors money and outperformed their initial targets.
Secondary Market
Cadre investors won’t receive dividends, any other cash flow, or any of their invested capital back, until the targeted sale date of the property. Cadre is one of the few real estate crowdfunding platforms with a secondary market.
This allows for investors to sell off all or part of their investment and help other investors to put money on a deal they might have missed. Cadre chargers the seller and the buyer a fee of 1.5% of the net value of the transaction.
Cadre Pricing & Fees
Cadre charges investors 2 different fees each deal:
- 1% of your gross invested dollars up front per transaction.
- 1.5% of net asset value for the recurring annual management fee.
Cadre negotiates a percentage of profits when the property is sold. This percentage is normally above a minimum profit threshold for investors.
Cadre Limitations
Cadre is only available for accredited investors, meaning you must meet one of the following requirements:
- Your net worth (or combined net worth with your spouse) is over $1 million, not including the net equity in your primary residence.
- Your individual income is more than $200,000 (or $300,000 with a spouse) in each of the two most recent years.
Keep in mind that it requires a high investment minimum of $50,000 and only offers one new deal per month.
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Bottom Line
Rated one of the top real estate crowdfunding platforms out there, Cadre is perfect for accredited investors who are willing to put down at least $50,000 on a real estate project for five to eight years or more.
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However, if you’re just looking do smaller real estate investments, consider checking out Fundrise or Groundfloor instead.
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