Cadre is a commercial real estate investing platform that focuses on institutional-quality properties. Here’s everything you need to know before making an investment.
This review will go over Cadre to see if it really is the best real estate platform out there.
You’ll learn whether real estate is the right online business for you.
And at the end, you’ll find answers some of the most frequently asked questions regarding Cadre and real estate 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 for good because it uses some of the same skills but in a much more powerful and profitable way!
Cadre Real Estate Investing was established in 2014 as a platform for commercial real estate investing. Since its inception, the business has transacted more than $3 billion in real estate transactions, delivering an average net return of more than 18 percent on the four completed property sales. They’ve paid out more than $168 million to platform investors since its launch.
You will have the option of investing in either individual commercial property purchases or a managed fund consisting of a portfolio of properties.
The Better Business Bureau or BBB has given the company an A+ rating, the best possible on a scale of A+ to F.
Cadre is based in New York City and has received at least $155 million in funding from major investors such as Andreesen Horowitz, Goldman Sachs, Founders Fund, and the Ford Foundation. PitchBook’s most recent appraisal places the startup’s worth at $800 million. Furthermore, Blackstone, Fortress Investment Group, Four Seasons, and Vornado are represented on its Investment Committee.
Cadre invests in institutional-quality commercial assets such as multifamily apartment buildings, office buildings, hotels, and industrial structures such as warehouses. If you choose to invest in the Cadre Direct Access Fund, you will own a portion of a portfolio that can invest in all of these sorts of properties.
Cadre distinguishes itself from competitors and other real estate investing platforms through its due diligence and vetting procedure.
Cadre relies heavily on proprietary technology to assist its investment and asset management teams in selecting, acquiring, and administering properties on its platform. Their data science team monitors 50 metro regions across the United States to identify the markets with the greatest development potential, which they refer to as the Cadre 15. They do due diligence on properties, deal sponsors or developers, and the submarket in which the property is located within these markets. Their goal is to discover properties that have the potential to provide “outsized risk-adjusted returns,” and they only invest in homes that meet very strict criteria.
Cadre also co-invests in every deal done on their platform. This is not true of many of its competitors, particularly crowdfunding platforms, which often merely act as a middleman.
Cadre announced a strategic agreement with DisruptAD in June 2021, which will allow Cadre to attract more investors outside of the United States.
Cadre also allocate 10 percent of its future investment capital to operating partners.
There are no REITs or other highly diversified funds available. Why choose Cadre vs REITs?
Cadre’s commercial real estate platform offers institutional-level details on each property as well as a more beneficial investment structure than traditional real estate investing models such as REITs.
Cadre was founded by Ryan Williams, who also serves as its CEO. Prior to creating Cadre, Williams worked in The Blackstone Group’s real estate private equity division, where he was engaged in over $3 billion in transactions.
Prior to joining Blackstone, he worked in Goldman Sachs’ technology media business, where he was involved in transactions worth more than $5 billion.
Cadre Real Estate Investing is a fundamental, value-driven investment strategy. They are looking for commercial real estate deals that give a good risk-adjusted return. They primarily seek income-producing homes in major US markets with strong fundamentals.
Unlike many other real estate crowdfunding platforms, Cadre aims to increase investment value by actively managing the properties in its portfolio. This is accomplished through a mix of operational and capital upgrades. The company also makes an effort to maintain a balanced allocation, with half of its assets invested in multifamily and the rest in commercial, industrial, and hotel buildings.
This method aims to combine the predictability of income given by multifamily investments with the higher upside potential of commercial properties.
Office buildings, multifamily residential complexes, and retail establishments are examples of investment properties. Because of the nature of the assets available, investors should anticipate keeping their positions for at least ten years to reap the most benefits.
Unlike traditional real estate crowdfunding platforms, which require you to hold your investment until it is completed, Cadre offers a secondary market for full or partial liquidation of your holding.
After a six-month holding period on a new investment, you may be able to sell your stake on the platform at a target sale price depending on the investment’s net asset value at the time you give it for sale. The business does warn, however, that the ability to sell your position is not guaranteed.
The ability to sell your investments is often made available on a quarterly basis and within Cadre-defined time frames. These periods are usually held in the middle of each quarter and last around two weeks.
Cadre will evaluate the sale price of your investment based on particular discounts to their “Marked Value.” This procedure appears to imply that, while you can sell your investment holdings, you will almost certainly do so for less than the entire value at the time of sale.
Investment sales need a minimum of $50,000 and can be increased in $5,000 increments. If you completed a partial sale, subsequent sales in the same property must be for at least $10,000.
The returns from the sale of your investment positions are scheduled to be deposited into your bank account within 45 days of the transaction’s completion.
Secondary market charge: A fee of 1.5 percent of the gross transaction price is paid by both the buyer and seller in a secondary market transaction for a total fee of 3 percent.
The minimum investment is $50,000, which is also the required minimum investment per transaction or in the Direct Access Fund.
Allocation and commitment process: To participate in the various investments available, investors can submit a non-binding allocation request. Allocations are made after taking account timing, interest level, and overall opportunity size into account. When your application is accepted, you’ll be sent an online subscription agreement, which must be signed before you may get funds.
Distributions of income: Income is dispersed quarterly and deposited into your bank account. The distribution amount will be determined by the performance of each individual investment.
Income tax reporting: The outcomes of your investments will be reported to you and the IRS on IRS Form K-1. It will disclose net rental income, interest income, and other income and expense data, including depreciation.
Customer care is available through phone and email from 9:00 a.m. to 6:00 p.m. Eastern time, Monday through Friday.
Although you can invest in individual properties on the site, they also provide a managed investment option & an interest-bearing cash account available to all investors.
With a single $50,000 investment, your money will be dispersed over 15 to 20 multifamily, industrial, commercial, and hotel buildings in high-growth locations across the country.
The fund, like individual investments, aims to create a combination of annual cash flow and significant potential property value growth.
They use four different investing objectives, each with its own risk/reward balance, as is the case throughout Cadre’s investment strategy. They especially target “Value Add” for the Direct Access Fund, which is a medium risk/reward strategy with an expected annual return of 10% to 12%.
Cadre Cash is a bank account that pays interest and is housed within the Cadre Real Estate Investing platform. It is instantly made available to all investors and is used to ease transfers to and from a third-party bank account and to fund investments on the platform. This account has no fees connected with it.
Cash held on the Cadre platform via Cadre Cash is insured by the FDIC under the Multi-Bank Program. Cadre Real Estate Investing will set up an account for you as an investor. The account has no minimum balance requirement. Cadre keeps a minimum of 5% of its cash with leading minority depository institutions.
Funds in the account can be withdrawn & deposited regularly, much like a personal bank account. However, access is restricted to US citizens and those with a US-based bank account.
The account’s current yield is 0.001 percent APY. There are no account fees or charges for withdrawals or transfers with this account.
Cadre offers investments in approved opportunity zones. They are abbreviated “QOZ” and represent properties in economically challenged areas where new investments may be eligible for favorable tax treatment.
You should be an accredited investor to invest with Cadre Real Estate Investing. That means you must have earned at least $200,000 per year as a single person or $300,000 as a married couple. You can also qualify if you have a minimum net worth of $1 million, excluding your primary house.
You can click “Get Started” button on the website to join up for the service.
After that, you’ll be asked to specify whether you’re an individual investor or a financial advisor.
Following that, you must confirm your position as an accredited investor and enter your name, phone number, and country of residence. After that, you’ll provide your email address and create a unique password, and you’ll be in.
Then, you will be given a series of questions to establish your investment objectives, prior real estate investing experience, time horizon, and risk tolerance.
Finally, you’ll be asked to estimate your net worth (but you have the option not to disclose this information). You will get access to the investment platform once you have completed each of these procedures.
You will receive an email from the company once you have access to the platform, and you may book an introductory phone call if you choose.
To fund your Cadre account, you must connect it to a US-based bank. Cadre currently can’t accommodate non-US persons or non-US banks.
Cadre imposes two fees for each investment in real estate market, which are based, at least in part, on a sliding scale connected to the amount you invest in an individual property or the Direct Access Fund.
The first is an annual charge, which includes both a management and an administrative cost. Combining the two charges will result in an annual charge of 2% on investments under $1 million and 1.75% on investments beyond $1 million.
There is also a one-time commitment fee based on the amount of your investment and ranges between 1% and 3.50% of your investment.
Yes, you can! Cadre can help build your portfolio with institutional quality investments. But it also has high minimum investment requirement.
There’s a lot that comes along with real estate that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money with real estate, 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.
Cadre is not a scam. It allows you to make commercial real estate investments.
It is entirely possible to build a profitable, successful real estate business… But there are better ways to build a business other than with real estate.
Our #1 pick proves this.
Cadre is 100% legit.
But, when it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming a real estate investor, you’ve got way better options than Cadre.
Keep in mind, I don’t get paid to promote any of the programs I review. I personally think real estate is a great business model, but you could end up leaving way too much money on the table.
Where this Cadre falls short is in scalability. Because in order to make a good amount of money with real estate, you have to own several different houses.
And who has that kind of capital to start?
But what if you went local?
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.
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.
Once the training program is completed you will also have access to a Facebook group much better than the Cadre group in our opinion. This group is much more active.
Unlike Cadre, where you’re profiting maybe $250 per property, you could be getting 5-10X THAT.
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 about how to create Digital Real Estate assets and start building YOUR digital empire!