Is ArborCrowd legit? How strong is it?
As part of the Abror family of companies, ArborCrowd has legit backing. Arbor has originated more than $6.2 billion of loans and has more than $2 billion of assets under management.
To date, ArborCrowd has raised approximately $30 million of equity for assets with a total capitalization of more than $370 million. It screens 500+ deals a year and has, as of this review, only offered nine deals on its site.
It had fully realized three at the time of this review. The first is a three-property, 607-unit multifamily portfolio in Alabama and Mississippi. It was funded in February 2017 with a two-to-three-year projected term and expected internal rate of return (IRRs) of 17% to 20%. It actually sold in 15 months, delivering 29% IRR to investors.
ArborCrowd's second fully-realized deal was another multifamily in San Antonio that was projected to deliver 16% to 19% IRR in two to four years. It closed in 22 months, delivering over a 20% IRR to investors.
The third fully-realized deal was a multifamily portfolio in Sioux Falls, South Dakota. It had a targeted hold period of three to five years and a projected net IRR of 12% to 14%. However, the actual hold period was 13 months and the realized net IRR was 16.15%.
There are six other fully-funded deals on ArborCrowd's platform with varying projected timelines and IRRs that look promising.
Unlike the technology entrepreneur founders of many crowdfunding companies, co-founder and CEO Ivan Kaufman has four decades of experience operating several real estate finance companies -- a great asset to have at the helm. He's the founder of Arbor Realty Trust, a leading REIT that became publicly traded in 2004. He's successfully navigated companies through several real estate cycles, and he provides insight and final signoff on every single deal that makes it onto ArborCrowd's platform.
He co-founded the company with his son, Adam Kaufman, who serves as ArborCrowd's COO and oversees the company's day-to-day operations and corporate growth.