For equity investments, RealtyShares sets up a separate limited liability company (LLC) for each investment opportunity, and that LLC will in turn hold an interest (sometimes indirectly) in the entity that actually owns the subject real estate. When you invest in an equity opportunity through RealtyShares, you own shares in that LLC. Using this structure, you should have the benefit of limited liability while also enjoying the benefits of using a "pass-through" entity for tax purposes.
For debt and certain "preferred equity" investments, investors will invest in debt obligations of RealtyShares subsidiaries -- "payment dependent notes" -- that are tied to the performance of real estate loans or investments made by that subsidiary. The notes are issued in tranches, or “series,” and each series of notes will be tied to the performance of a corresponding borrower loan or project investment. In some cases, a relationship with a third-party trustee has been established so that the counterparty risk to investors in these situations is limited.