Cadre is a real estate crowdfunding platform that takes a lot of time and effort to identify the very best commercial real estate projects, then makes them available to investors. What’s the catch? You have to be an accredited investor with at least $50,000 to invest. Keep reading for everything you need to know about Cadre.
|Investment Offerings||Equity, preferred equity, debt interest|
|Time Commitment||5 to 8 years|
|Advertised Returns||10% to 15%|
|Availability||Accredited investors only|
|Management Fees||2% to 5%|
- Industry-leading due diligence
- Deep alignment with investors
- Standalone investments or managed portfolio
- Secondary market adds liquidity
- 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 “the Cadre 15,” a fund with a portfolio of 15 to 20 properties across 15 markets. The minimum to invest is $50,000, and most investments have hold times of five to eight years.
You can hand-pick your own investments, or you can enroll in Cadre’s Managed Portfolio where your money will be divided equally into the next five projects on the platform.
There’s a lot to like about Cadre, including:
Cadre boasts an experienced real estate investing team and a due diligence process to hand-pick the very best real estate deals in the best markets.
Deal sponsors and individual real estate projects must meet stringent requirements before Cadre will consider them, and the company uses quantitative analysis to identify and predict which markets have the best chances of future success. As a result, only approximately 2% of the deals submitted for consideration are listed on Cadre.
Cadre sources some of their best deals from deep relationships across the real estate industry, and many are off-market properties, which translates into lower transaction costs and improved returns.
Cadre doesn’t have a lot of investments that have gone full cycle, so there’s not much data on their returns. The ones that have matured made investors money and outperformed their initial targets. Returns for prior offerings fall in the 11% to 27% range, with most showing an IRR of about 13%.
Cadre says that one of the reasons for their continued success is their balance sheet. They don’t owe a single cent of debt and offer “backstops” on all the deals they list, wherein Cadre agrees to cover any gap in funding to close the deal.
All Cadre investors should not expect to receive dividends or any other cash flow generated by the project, nor any of their invested capital back, until the targeted sale date of the property. That said, Cadre is one of the few real estate crowdfunding platforms with a secondary market. It operates a couple times a year and will actively assist investors who want to sell off all or part of their investment. This also allows other investors the chance to put money on a deal they might have missed. Cadre does charge the seller and the buyer a fee of 1.5% of the net value of the transaction for facilitating.
Cadre Pricing & Fees
On every deal, Cadre charges investors two sets of fees:
- 1% of your gross invested dollars up front per transaction. So if you invested the $50,000 minimum, $500 of that goes to Cadre.
- 1.5% of net asset value for the recurring annual management fee.
On top of that, Cadre negotiates a percentage of profits the sponsor will earn when the property is sold, usually above a minimum profit threshold for investors.
Cadre only works with accredited investors. That means you must meet one of the following requirements:
- Your net worth (or joint net worth with a 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.
Cadre also requires a high investment minimum of $50,000 and only offers approximately one new deal per month.
Cadre is one of the top real estate crowdfunding platforms for accredited investors who are willing to put down at least $50,000 on a real estate project for five years or more. Benefits include high-quality investment opportunities and liquidity every few months.
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