RealtyShares first reviews investment opportunities to confirm that they meet some threshold criteria for listings on our online platform. If opportunities seem interesting, then background and credit checks are run on the principle executives of the sponsoring (or borrowing) real estate company. RealtyShares then reviews other sponsor-provided information -- such as pro forma financials, title and inspection reports, comparable sales data, and other pertinent information -- and assembles such data on the platform so that investors can review the information directly.
Once an investment is listed, the information will include not only the general information about the particular opportunity but also the legal documents that contain detailed "risk factors" and which investors should review carefully before making any investment. Each investment has a target funding amount, although the ultimate aggregate investment made may be more or less than this amount depending on the success of the raise and the other capital commitments of the sponsoring real estate company. Because these real estate projects can be complex (involving lender financing agreements, etc.), sometimes several weeks will pass before a project closing is scheduled. In these cases, we typically will not debit funds from your bank account until the project is approaching the time of the expected closing. If RealtyShares falls significantly short of the expected raise or the transaction otherwise fails to be consummated, 100% of your investment commitment will be returned to you.
Investors should review closely the information provided on each investment opportunity that is of interest, including the "risk factors" described in the investor package of legal documents. Your funds will be utilized only for the investment that you have designated.
RealtyShares does not, of course, guarantee the performance of any investment. There is always the risk that returns may fail to meet projected amounts and even that investors may lose all of their invested capital.