RealtyShares is Offering Prefunded Deals: What it Means for Investors and Sponsors

Our goal is to create an unparalleled experience for our community of sponsors and investors. With the introduction of prefunded residential debt deals (and select equity deals), we’re taking yet another exciting step forward.

RealtyShares recently closed a substantial line of credit through an institutional partner, which will allow us to partially prefund every debt deal, as well as equity deals which require expedited closings, before making them available to our investors.

From the sponsor perspective, the advantage of prefunding is quick access to guaranteed capital. In hot real estate markets where competition for properties runs high, the ability to raise capital quickly can potentially make or break the success of a project. By prefunding deals, we make it possible for developers to move ahead without incurring unnecessary delays.

RealtyShares has always strived to provide faster access to capital through technology, reducing lag time and narrowing the window between application and closing. This is just another tool we can use to make the process more attractive for our borrower community.

Spearheading the charge for RealtyShares’ residential offerings is Kelly McDonald, Vice President of Residential Debt. Her team vets and manages our fix-and-flip opportunities, dealing directly with sponsors to select deals that best fit the profile of our network of investors.

The line of credit also creates value for our investors. Shorter funding windows means investors will be in a position to potentially begin accruing interest faster. However, prefunded deals will still be subject to the level of diligence we put into all of the opportunities on the platform. It is important to note that risks associated with RealtyShares’ investments do not change; prefunding simply affords a new level of efficiency.

We take pride in being able to bring this unique opportunity to our investors and sponsors as we continue to grow. This latest development is reflective of how RealtyShares has been able to evolve and flourish in the real estate investing space, and we’re excited to work with our community to make borrowing and participating easier for all.

Please keep sending us feedback. These improvements are a direct result of investor and sponsor requests. You are a part of our growing community and we hope this change reflects our commitment to your continued financial success.

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