Concreit Raises $6 Million to Enable Anyone to Invest in Diversified Professionally Managed Real Estate Fund With as Little as $1
The fund is managed by a team of industry professionals with an aggregate of over $10B in asset management experience.
Concreit, the company opening diversified real estate investing to everyone, today announced that it has closed $6 million in seed funding in a round led by Matrix Partners. Hyphen Capital, as well as individual investors including Jon Stein, founder and CEO of Betterment; Andy Liu, partner at Unlock Venture Partners; and investor and advisor Ben Elowitz. Dana Stalder, general partner at Matrix, will join the Concreit board of directors.
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Concreit was founded by Jordan Levy and Sean Hsieh (Photo: Business Wire)
Today also marks the official launch of the Concreit app, which enables anyone to invest in the global multi-trillion dollar private real estate market for as little as $1(1). Most investors can open a Concreit account and make their first investment in minutes on their mobile device. The platform facilitates weekly earned payouts, automated investments and on-demand withdrawals, while compounding earned payouts weekly(2). Concreit’s first private REIT fund(3), focused on passive income, consists of lower-risk fixed-income private market residential and commercial real estate first-lien mortgages, which has an annualized return of 5.47%(4). The fund is managed by a team of industry professionals with an aggregate of over $10B in asset management experience.
Many popular real estate (“RE”) platforms burden investors with choosing properties and deals—presenting the paradox of choice. Concreit simplifies and demystifies real estate by giving investors access to simplified passive income.
“We are democratizing the real estate investing process because everyone deserves equal access to the opportunities that can change their financial situation,” said Concreit CEO and founder Sean Hsieh. “When I made a bit of money in my last company, I wanted to invest it intelligently. I saw the opportunity to earn a great APR through private real estate investing, while gaining less correlation with traditional public stocks or bonds markets. But they were only for the already wealthy or required multi-year commitments of capital. Concreit gives everyone access to a real estate portfolio and the ability to have access to withdrawals when they need them.”
A Better Way to Invest
Real estate investing has fueled some of the world’s largest investment portfolios for years(5), but many traditional real estate funds require heavy upfront investments ranging from $10,000-$100,000. Investors also need investing experience to navigate complexities of the real estate market, preventing the majority of would-be investors from participating. Additionally, traditional private fund investors typically receive redemptions on a quarterly basis, at best. Concreit changes all of this by facilitating on-demand customer withdrawals.
The Concreit platform provides an innovative and flexible investing experience to anyone interested in capitalizing on the real estate market. It enables consumers to invest incrementally; they can add money when it’s convenient or financially feasible for them. They can also take advantage of auto-invest scheduling to help grow potential returns even faster due to the compounding attributes. Additionally, Concreit automatically reinvests dividends to help compounding seamlessly, but unlike investors in traditional real estate funds, Concreit investors can schedule withdrawals whenever they want access to their money, subject to availability and approval; dividends can be paid weekly.
Early investors have increased their overall contributions by an average of 5x over the lives of their accounts(6). Given this early traction, Concreit is now ready to formally launch and promote its platform so that more consumers can take advantage.
“Concreit is my perfect way to decouple from Wall Street's public markets and gain the potential for meaningful weekly dividend payouts,” said Brandon T., a Concreit investor from New Jersey. “The automatic Instant Earn feature is not offered by other fintech companies. Concreit has been a fantastic complement to diversify and add to my overall portfolio.”(7)
Humble Beginnings
Concreit was founded by Hsieh and Jordan Levy, a pair of serial entrepreneurs who previously founded and bootstrapped the successful VoIP communications platform, Flowroute. Upon Flowroute’s acquisition in 2018, Hsieh and Levy wanted to build a company that could help everyday people become more financially secure. Hsieh, a second-generation immigrant, grew from humble beginnings working in his family’s restaurant, where they shared the dream of achieving financial freedom through real estate.
Similarly, Levy grew up watching his parents build a small construction business from scratch. He was intrigued by the idea of passive income through single family rental homes, but became disillusioned with the overhead, risk and hassle of managing one’s own single family rental investments. Drawing on these formative experiences, as well as their technology expertise, Hsieh and Levy set out to design a mobile-first offering that could enable small investors to benefit from real estate without the burden of making repairs at 2 a.m. on a Saturday. With Concreit, people gain the financial benefits of real estate investing without the complications.
“What Concreit has built is incredibly hard to do from both a technology and regulatory standpoint, but Sean and Jordan are absolutely driven to make it not just a viable platform for investing, but an outstanding and rewarding experience for even the most novice, passive investors,” said Matrix’s Dana Stalder. “The economics speak for themselves, and the flexibility Concreit allows should motivate anyone to jump into real estate investing.”
Available now, there are no fees to invest on the platform or mobile app. Download it from the App Store or Google Play and start your investment journey with Concreit today.
About Concreit
Concreit is opening the opaque world of private real estate investing to the masses. Its free mobile app allows consumers to invest as little as $1 into a fund managed by a team of investment professionals. Withdrawals can be requested at any time through the app and sent upon approval, empowering investors to achieve financial goals easier than ever before. Concreit is based in Seattle and backed by fintech experts and top technologists, including Matrix Partners, Hyphen Capital, Jon Stein, Andy Liu and Ben Elowitz.
Securities offered through Dalmore Group, LLC, member FINRA & SIPC.
- Investing in real estate involves risks including the potential loss of principal. A real estate portfolio is subject to risks similar to those associated with the direct ownership of real estate and real estate debt, as the investments are sensitive to factors such as changes to real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer & borrowers. Portfolios concentrated in real estate assets may experience price volatility and other risks associated with non-diversification. US real estate investments may also be affected by tax and regulatory requirements. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there is no assurance that a portfolio will match or outperform any particular benchmark. There is no guarantee that investment objectives will be achieved, and past performance is not indicative of future results. Concreit is not a bank and does not provide accounts that are FDIC insured.
- On-demand withdrawals mean that investors may request withdrawals at any time, subject to manager approval.
- Concreit Fund 1 LLC is presently a private equity real estate fund that intends to elect for REIT status when it is eligible.
- The annualized return was calculated from July 1, 2020 to July 1, 2021 of investments in the Concreit Fund I LLC, a private real estate fund.
- Edward N. Wolff. National Bureau of Economic Research. “Household Wealth Trends in the United States, 1962 to 2016: Has Middle Class Wealth Recovered?” November 2017. https://www.nber.org/papers/w24085
- This data was averaged from all investors that signed up from July 1, 2020 to August 31, 2020 and calculated until May 31, 2021.
- The persons providing the testimonials on this website have experience in the services that Concreit provides. Their respective experience with Concreit may not be representative of all other Clients of Concreit. Testimonials are not paid for by Concreit. Testimonials do not constitute a guarantee of future performance or success related to any product, transaction or service.
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