Global real estate investment network iintoo has now acquired the assets of RealtyShares as part of a joint venture. The move increases iintoo’s portfolio from $1 billion to $2.5 billion in assets under management. The purchase catapults iintoo into a market leadership position, which will benefit investors via the company’s disruptive approach to crowd-sourcing real estate investments.
With average annual yields of 16.63%* on average, iintoo has proven its disruptive approach effective. The network of 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. Eran Roth, CEO of iintoo had this to say about the acquisition:
“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.”
RealtyShares was the second largest online real estate investment platform in the United States before the company stopped taking deals in 2018. At that point, RealtyShares had $400 million in equity from its investors. So, 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.
The former and current investors in RealtyShares will now get access to iintoo’s platform and investment opportunities. Shoshana Winter, iintoo’s Managing Director in the U.S, offered this via the company’s press release:
“The iintoo model has transformed the way people think about and invest their money. 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.”
Crowd-sourced funding opens new avenues for financing real estate for property owners and developers as well. 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. Acquiring RealtyShares pushes iintoo into a leading position in this market category, enabling the company to accelerate its global presence in the years ahead.
* 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.