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ArborCrowd

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By: Scam Risk - Expert Reviewer

ArborCrowd Review (2021): Best Commercial Real Estate Investments?

ArborCrowd Review: A Real Estate Investing Platform

In this review, we’re going to cover everything you need to know about ArborCrowd.

As a matter of fact…

What I’m about to share with you is exactly the same information that has helped more than 83.7% of our readers with their questions about how to make money with real estate.

Now, I do want to say this first…

Even, though you might have some pre-conceived notions about ArborCrowd… when you’re finished with this review, you’ll feel confident that whatever decision you make will be the best one for you.

So, let’s get started…

Table of Contents

ArborCrowd Overview:

ArborCrowd is a commercial real estate investing platform that uses crowdsourcing to make investing in commercial real estate more inexpensive and accessible.

ArborCrowd’s team follows a thorough underwriting procedure to qualify each offer before being accepted on the platform, which is simple to use and master.

Opening an account with ArborCrowd is likewise very simple. You can start investing in as little as a few minutes.

Even though the platform’s investments are exclusively available to accredited investors and that the minimum commitment is costly, ArborCrowd is a good choice for beginner real estate investors searching for top-of-the-line, hand-picked offerings.

This review will go over ArborCrowd to see if it really is the best Real Estate Investment out there.

You’ll learn whether Real Estate Investment is the right online business for you.

And at the end, you’ll find answers to some of the most frequently asked questions regarding ArborCrowd and Real Estate Investment in general.

But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.

This system made them swear off Real Estate Investing for good, because it uses some of the same skills but in a much more powerful and profitable way!

Overview: ArborCrowd Review

This ArborCrowd review will teach you more about ArborCrowd’s investment options, such as how investments on ArborCrowd are structured and what your prospective returns may be.

Many real estate investment crowdfunding platforms are first and primarily tech enterprises (drawing talent from Google and Uber). Still, others approach the market as real estate operators applying technology to what they currently do. ArborCrowd, a relatively new newcomer founded by a successful group of existing commercial real estate businesses like Arbor Realty Trust, Arbor Commercial Mortgage, and AMAC, is clearly in the latter camp and is built on an outsourced platform (in this case via CrowdStreet)

Best For

  • Transparent information
  • Easy sign-ups
  • Thorough vetting process

Pros

  • Simple, easy sign-up process
  • A thorough screening process is used to examine investments on your behalf.
  • Each service has a transparent business plan and financial details available.

Cons

  • Offerings open to accredited investors
  • A limited number of offerings

Platform Quick Summary

  • Tradable assets: Proprietary real estate investments
  • Account minimum: Individuals must invest a minimum of $25,000 to qualify.
  • Platform: Simple to use and navigate; information on investment opportunities is simple to find and comprehend.
  • Available account types: Commercial Real estate investment
  • Mobile app: No proprietary mobile app; website is mobile-friendly.

What Is ArborCrowd?

Suppose you’ve ever desired to invest in multifamily real estate. In that case, you know that the financial hurdles can be prohibitive for even wealthy individuals.

A multifamily property might cost upwards of $50 million based on location and unit count.

ArborCrowd is a real estate investment crowdunding platform.

You can combine your money with other investors to buy and sell multifamily properties.

ArborCrowd has already invested in apartment buildings in Brooklyn, New York, and Miami, Florida. Previously, only institutional investors, high-net-worth individuals, and family offices could participate.

So now, individuals can pool their funds with other investors to get a piece of the investment pie.

ArborCrowd is the very first real estate crowdfunding platform created by a real estate institution.

ArborCrowd is a subsidiary of The Arbor Family of Companies, which also comprises Arbor Realty Trust.

Arbor Realty Trust is a renowned commercial real estate investment trust (REIT), a type of commercial real estate company that generates loans secured by real estate.

Arbor Realty Trust, as a REIT, is mandated to pay 90% of net earnings to stockholders in the form of dividends.

ArborCrowd functions in a unique way.

ArborCrowd targets commercial real estate investments with high growth potential by leveraging the company’s contacts as part of Arbor Realty Trust.

ArborCrowd then uses its own funds to make equity investments in the assets before presenting investment opportunities to the crowd via its platform.

This ensures that ArborCrowd has skin in the game. Suppose the platform cannot attract enough investors to fully return its initial commitment.

In that case, the corporation will retain a piece of the deal.

How does ArborCrowd work?

It sources deals from real estate developers and dealmakers who have a track record with the Arbor family of companies.

As a result, their costs are engineered to appear more expensive than the leading low-cost platforms (Crowdstreet and RealCrowd).

However, the net worth to the investor is almost the same. They charge an asset management fee (0.25%-0.5%), an acquisition fee (1-1.25%), a disposition fee (1%), and refinance fee (1%). Other sites don’t charge this at the platform level, but the investor does.

So they’re pretty similar.

When ArborCrowd finds a deal, it pre-funds it with its own money before offering it on the platform. If they can’t acquire enough investors, they’ll wind up controlling part or all of the deal.

This gives them an extra incentive to underwrite successfully, which protects investors. It’s hardly a panacea, though.

The incentive evaporates if a platform fills all its offers rapidly. Many sponsors prefer pre-funding because it gives them more certainty.

Arborcrowd is currently the only equity platform that does this.

ArborCrowd Usability

ArborCrowd’s platform is easy and well-organized. ArborCrowd makes it simple to invest in real estate, stocks, and other assets, even if you’ve never done so before. Easy-to-use aspects of ArborCrowd’s platform include:

Quick and simple sign-ups:

  • Creating an ArborCrowd account is a breeze. Answer a few questions about your credentials and personal information to start viewing investments. Opening an ArborCrowd account took us roughly 5 minutes.

Well-organized offerings:

  • Finding old and current projects on ArborCrowd is simple. There are lots of photographs and target estimations to compare. Tax paperwork and offering information are easily accessible and sorted by funding status and availability.

Clear property explanations.

  • When you click on an investment opportunity, you can learn more about why ArborCrowd’s real estate specialists chose it. Without prior knowledge of the real estate market, you’ll be able to rapidly assess the benefits and downsides of each offer.

Overall, ArborCrowd’s investment platform is simple to use and a good starting point for investors who have been intimidated by other real estate crowdfunding sites.

ArborCrowd Education

The level of depth and information provided for each investment is one of the most striking aspects of ArborCrowd’s platform. Some of the details you’ll find on each potential real estate investor are as follows:

  • Location: ArborCrowd meticulously examines the neighborhood, including population growth, employment variety, and other aspects, before offering a property. In the executive description of each product, you may learn about local amenities, why this place was chosen, and local real estate trends.
  • Photos: ArborCrowd invests in multifamily apartment buildings. You may see pictures of the units, exteriors, and common areas. So you don’t have to invest blindly. You can see photographs of the property you’re investing in.
  • Market fundamentals: How do real estate experts determine where to invest? For example, ArborCrowd provides a portion of “market fundamentals” that explains why this particular sector was picked. The market fundamentals component of any offer may include employment rates, housing availability and demand, and population growth.
  • Financial analysis: Every project’s financial data is easily accessible. Each project’s offering summary or private placement memorandum contains detailed information on debt, equity, expenses, operating income, and more.
  • Timeline and business plan: ArborCrowd offers each project’s business plan and schedule. Suppose the property was purchased from a prior owner. In that case, the business plan details how the sponsor aims to produce profits for investors through operational and capital enhancements.

Also, ArborCrowd has a “Learning Center” section where you can read real estate investing articles and press announcements from ArborCrowd.

Previous articles covered the impact of the COVID-19 virus on the real estate market, planning for the subsequent economic slump, and evaluating real estate investment opportunities. The Learning Center is a great resource for both new and seasoned investors.

ArborCrowd Customer Support

ArborCrowd provides several ways to contact customer care.

  • By phone: ArborCrowd can be reached at 844-365-1200. The company’s website gives no specified customer care hours.
  • By email: Send an email to investorrelations@arborcrowd.com.
  • By internal message: Fill out a contact request form to send ArborCrowd an internal memo.

Currently, there is no specific customer support approach for the deaf. We hope ArborCrowd will eventually broaden its phone communications to accommodate investors with disabilities.

ArborCrowd is very quick to email, can arrange video conversations upon request, and has a financial advisor on staff.

ArborCrowd Offerings

ArborCrowd’s level of expertise and selection in its investment opportunities is exceptional.

ArborCrowd has access to real estate opportunities that the Arbor Family of Companies does not.

ArborCrowd reviews over 500 investment possibilities per year, but only 9 have made it onto the platform.

ArborCrowd only offers investments that pass its rigorous screening procedure, including analyzing the basics, timing, and business strategy.

This approach has some flaws. ArborCrowd usually only offers one real estate investment opportunity at a time due to the extensive research done by the team.

A restricted equity raise indicates an option may be filled before you can invest. However, we believe the benefits of this strategy exceed the disadvantages.

ArborCrowd's Investment Options

ArborCrowd’s previous offerings have included multifamily portfolios, apartment complexes, and mixed-use buildings.

They are equity investments with hold lengths ranging from 2 to 5 years. ArborCrowd is exclusively available to accredited investors, with a $25,000 minimum investment.

What do you get when you invest with ArborCrowd?

When you invest in real estate through ArborCrowd, you get a membership interest in an LLC created just for that transaction.

The LLC owns the land.

ArborCrowd will send you a K1 for each investment you make to report your part of the LLC’s income.

Commercial real estate investments can be complicated, involving several parties.

For ArborCrowd, other real estate investment funds operating as limited partners are also included in the offering paperwork.

For example, additional investment funds engaging as equity owners in the property may have the right to force a sale.

How does ArborCrowd make money?

Depending on the investment, the LLC often pays origination and yearly fees.

However, investors should read the offering documents carefully to understand the costs paid out by the LLC they’re participating in.

Can You Make Money in ArborCrowd?

Yes, You can!

But…

There’s a lot that comes along with real estate investments that many people struggle with.

Now, don’t get the wrong idea…

It’s not impossible to make money with Real Estate Investment, but if you’re gonna put in the amount of grueling work to do this business (which, trust us, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.

The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.

ArborCrowd's Breadth of Products

ArborCrowd has offered three new properties since its inception in January 2016.

People can now invest in an alternate asset class via real estate crowdfunding portals. Affluent investors are no longer constrained to volatile equities and bond markets.

Regulatory framework for Accredited Investors and due diligence expectations

ArborCrowd only accepts accredited investors (SEC. Reg. D). They are not a registered broker-dealer or an investment advisor. 

They stress their involvement in investment curation and selection. Still, their website could use additional details beyond cash flow, local market indicators, and sponsor quality. Notably, they say:

Everything we show the audience has been reviewed by ArborCrowd’s CEO with over 30 years in the field.

While a platform’s procedure should not replace your own due diligence, it is different from other platforms that operate more like markets with less curating.

What are ArborCrowd Pros and Cons?

  • Advantages: Sponsors (and their affiliates) have a massive 51 percent skin in the game, as well as top-tier due diligence paperwork and full bankruptcy protection.
  • Disadvantages: There isn’t much volume. Minimums are set at $25,000 (compared to the industry norm of $5000).
  • Accolades: #1 for detailed due diligence paperwork, #1 for the most sponsor (and affiliated-company) skin in the game

I like to see the sponsor contribute capital (“skin in the game”). Sponsors encourage pay without it financially incentivizes them to take risks.

But significant skin in the game enables them to avoid danger and operate more cautiously. (An ambitious investor may prefer no or little skin in the game.)

As a result, every ArborCrowd sponsor must have significant skin in the game. For example, in their present arrangement, the sponsor contributes 15%.

Affiliates (who maintain sponsor-type rights in deals, like the power to sell at will) increase it to 51%.

It’s good for a conservative investor to have such high investment levels managing the fund.

ArborCrowd Overall Rating

Investing in real estate might be intimidating. ArborCrowd’s crowdfunding concept makes not only real estate investing more accessible but also extremely simple.

We like the platform’s simple sign-up process and clear descriptions of each investment. Love the rigorous analysis and precise financial data for each service.

ArborCrowd isn’t ideal. ArborCrowd, like several other crowdfunding investment sites, is only limited to accredited investors willing to make a minimum investment of $25,000.

While ArborCrowd’s selectiveness is an advantage for investment choice and investor security, it can also result in a queue if the platform becomes swamped with offers.

We hope ArborCrowd would broaden its customer service services to include persons with hearing impairments.

ArborCrowd is an excellent choice for both new and experienced real estate investors.

ArborCrowd’s unique concept has exclusive offers, a robust platform, and a varied selection of underwritten investment opportunities.

What Is Our #1 Recommendation For Making Money Online In 2021?

Our review team has come across a program in the real estate industry that is next level!

Although it’s not real estate in the traditional sense, it’s all digital.

Yup, Digital Real Estate!

Where this ArborCrowd falls short is in scalability. Because in order to make a good amount of money with real estate, you have to invest in multiple properties across the country.

And who has that kind of capital to start?

But what if you went local?

With Local Lead Generation, you will be getting service requests from multiple sites at every minute of the day from people who are willing to pay a lot of money for what you can provide them.

I was watching a YouTube video once where the host made a comment that it isn’t about making a lot of money from one website… it’s about making a little bit of money from lots of different websites.

So, think of it this way….

What if you could have streams of investment income where you operated 10 rental units that you could charge anywhere from $750-1,000 per month?

That’s $7,500-10,000 per month in passive income!

What If You Invested Into 100 Rental Units?

But instead of spending $Millions to build houses or apartment complexes… you spend a couple hundred dollars to build websites.

You then get those websites ranked in the search engines for specific home-based services that customers are searching for.

Next, you offer your lead generation system to local business owners who are looking for customers and are willing to pay you for their information.

And Then…

BAM!

You’ve just created a Digital Real Estate Investment Empire that is potentially earning you 4-5 figures in PASSIVE INCOME on a monthly basis without spending a single dime on ads.

With conventional digital real estate, you have to compete with thousands, if not millions of others who are selling the SAME product to the SAME customers.

With Local Lead Generation, the competition is virtually nothing and your profit margins are 85-90%.

Now, I could go on and on, but I’m sure you have tons of questions…

So, learn how you can create Digital Real Estate assets and start building YOUR digital empire!

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