Since its very beginnings, Origin Investments was first and foremost a real estate investing firm. Then when the JOBS Act came about, the company adopted the technology and crowdfunding strategies to widen its investor reach. That’s in stark contrast to other investing platforms, most of which are primarily tech companies that excel in marketing, but haven’t “earned their stripes.”
See all the best real estate investing offers here.
If you’re not an accredited investor, but you want to get into real estate investing, consider Streitwise or DiversyFund.
Origin prides itself on personal service, along with the consistent quality of the real estate opportunities it offers. From only a handful of investment partners, the company has grown dramatically to now attract over 1,100 accredited investors. In this review, we’ll go over everything you need to know about Origin Investments.
| Minimum Investment | $100,000 |
| Account Fees | 1.25% per year |
| Time Commitment | 60 – 96 months |
| Offering Types | Equity, preferred equity |
| Property Types | Commercial, residential |
| Regions Served | Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Houston, Orlando, Phoenix, Nashville, Raleigh |
| Self-Directed IRA | Yes |
| 1031 Exchange | No |
| Pre-vetted | Yes |
| Pre-funded | Yes |
PROS
- Well-diversified funds
- Team expertise
- Transparency & online efficiency
- Great customer support
CONS
- Accredited investors only
- Significant fees
About Origin Investments
Founded in 2007, Origin Investments is a private real estate investment firm that owns and operates commercial properties. With the 2011 JOBS Act, the company was able to attract more investors – from personal high-net-worth relationships to accredited investors – through the use of technology and crowdfunding strategies.
Origin’s game plan is to acquire income-generating real estate, then force property appreciation with capital improvements and renovations. The company focuses on multi-family and office properties that range from $25 million to $75 million, a segment of the asset class that’s often overlooked by pension funds and large institutions.
When you invest with Origin, you’ll invest in a fund that owns a diversified mix of properties, as opposed to a specific property. Both of the company’s co-founders, David Scherer and Michael Episcope are the largest investors at Origin, with $56 million committed alongside investors, ensuring alignment of interests.
Origin Investments Products
Origin’s private real estate funds – IncomePlus and QOZ – provide tax efficiency, diversification and low volatility. The IncomePlus Fund was designed to deliver stable, passive income and appreciation. The strategy is to invest in equity and debt multifamily projects in fast-growing U.S. cities, and adding value by buying right and enhancing revenue through active management. Currently, the fund targets a total annual return of 9-11% net of fees from monthly distributions and annual appreciation. Hypothetically, if you keep your money working in the fund through its distribution re-investment program (DRIP), a $250,000 initial investment can grow into $1.72M.
*Assumes monthly distributions are reinvested at the beginning of each calendar month. A net annual yield of 6%, or .5% per month, is calculated based on the beginning net asset value for each calendar month. Also assumes a 4% increase in net asset value per year.
The QOZ Fund offers a diversified portfolio consisting of ground-up development projects in fast-growing U.S. cities that are able to produce viable returns, even before factoring in the tax benefits. Once the properties are built, the fund will comprise of Class A properties which produce stable cash flow for investors. Tax advantages include tax elimination on capital gains if held for 10+ years, tax deferrals on previous investments until 2026 and a tax reduction by up to 15%.
*Assumes 2.5x equity multiple return over 10 year period, deferred taxes on original capital gains with 10% step-up in basis return, and the same investment basis as equivalent taxable investment ($762,000).
With the app Path by Origin Investments, you can also access customized Public REIT Portfolios – handpicked and managed by real estate experts – designed with your goals and risk tolerance in mind. All you have to do is answer a few questions, and Origin will do the research for you.
Origin Investments Features
Different from other online investing platforms, Origin buys real estate directly, instead of acting as the broker or middleman. Real estate is the company’s main focus, and technology is implemented to provide the best customer experience possible.
Company Expertise. The co-founders bring decades of commercial real estate and asset management experience. They know where the deals are, how to get them and do due diligence to reduce investor risk.
Company Commitment. Origin co-founders invest side-by-side with their clients and employ real estate experts who live and work in the invested regions. Their team is compensated based on asset performance, not on acquisition volume nor commissions.
Company Transparency. The company also provides quarterly updates on investments, offering full transparency in their processes. Investors can also access details of their investment and track performance by logging into their account on the Origin website.
Customer Support. Every investor that registers with Origin will be contacted by a member of the company’s team within 24 hours. They will then walk you through the entire process of investing with Origin, which allows for quick and easy onboarding, instead of trying to figure it all out yourself. If you have any issues, you can refer to the comprehensive FAQ section on the website, or you can phone, email, message or visit the company.
Satisfaction Guarantee. If you’re not happy with Origin services – including investment memoranda, communications and reports – they will work with you to make things right. If you’re still not fully satisfied, Origin will refund your investment at your request, less fees, charges and market losses. This guarantee is only open to new Origin investors for their first twelve months and is limited to $250,000 per investor.
Origin Investments Fees
Like all aspects of Origin, the company is transparent with their fees. They charge an annual management fee of 1.25% of your net asset value. There’s also an administrative fee, acquisition fee and a performance fee:
| Administration Fee | 2% for less than $250,000 invested 1% or less for more than $250,000 invested |
| Acquisition Fee | 0.5% of asset purchase price |
| Performance Fee | 10% of profits with a 6% annual preferred return hurdle |
Origin Investments Limitations
Origin fees are slightly higher than other similar platforms, and their services are only open to accredited investors with a minimum investment of $100,000.
Bottom Line
Good commercial investment properties not only require an exorbitant amount of money, they also take a high level of expertise to acquire and manage. By integrating crowdfunding to their already successful real estate strategy, Origin allows individual investors to participate in the same deals that traditionally were only available to pension funds, large institutions and the super-wealthy. However, you must be an accredited investor with a minimum investment of $100,000 to invest with Origin.
See all the best real estate investing offers here.
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