NEW YORK--(BUSINESS WIRE)--
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
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.”
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. (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.