Mar
5

Introducing AlphaFlow Optimized Portfolios

alphflow_optimized_portfolios_real_estate

Today AlphaFlow is excited to launch a revolutionary investment platform unlike anything on the market. For the first time, investors can 100% passively invest in a diversified real estate portfolio at any time. It is ultimately a simpler, more intelligent way to invest in real estate.

Real estate investing has evolved at a rapid pace over the last 5 years and those of us at AlphaFlow have been at the forefront at each step. In 2013 I co-founded what is today one of the largest real estate crowdfunding platforms in the country: RealtyShares. For the first time, we made it possible to invest in residential and commercial real estate with as little as $5,000. It also gave me a unique perspective in understanding how platforms around the industry source and underwrite deals, along with the inherent pressure to move underwriting standards in order to stimulate growth.

In 2016, Bogdan Cirlig and I launched the industry’s first multi-platform funds. With one investment of as little as $10,000, our clients got a diversified portfolio of 75 to 100 loans sourced from the real estate crowdfunding industry’s top platforms. For investors, this meant that in just a few years they had gone from needing to write checks that were likely six figures, to now being able to invest as little as $100 in a first lien mortgage! Simply incredible.

Our funds invested in over 230 real estate loans in more than 25 states around the country. Each fund was exceeding the return target, and feedback from our clients was exceptional. We weren’t meeting all of their needs though, so we stepped back and designed a new platform from the ground up. We needed to build the next evolution of real estate investing.

At AlphaFlow, we believe in challenging the status quo in investing so that every investor has access to the best investments without needing to have millions of dollars to invest. To do that, we use top-caliber analytics and technology to create an elegant automated investing experience. Today we’re introducing AlphaFlow Optimized Portfolios to help fulfill that mission.

AlphaFlow Optimized Portfolios

  • We build, monitor, and automatically rebalance a portfolio of 75-100 real estate loans for you
  • AlphaFlow Advanced Analytics drive every investment decision
  • You earn 8-10% with the protection of real estate collateral
  • Simple 1% AUM fee, with no additional hidden costs

The Result: You get a diversified portfolio of the best loans from the best lenders, all with one investment.

For our fund investors, there were three major improvements here that fundamentally changed the investment experience:

  1. We’ve virtually eliminated all cash drag. Within a few days of receiving your capital, you will begin earning returns on your entire investment.
  2. You can invest and re-invest capital at any time.
  3. We continually rebalance your portfolio to keep you diversified as loans repay.

Thirty years ago, to trade stocks you might have needed to call your financial advisor at Dean Witter. Firms like E*Trade and Schwab changed that with online platforms and made trading cheaper and easier for everyone. Today, robo-advisors like Wealthfront and Betterment are applying Jack Bogle’s lessons online with equity portfolios. Today is a big step in AlphaFlow bringing that same philosophy to real estate. Welcome to the future of real estate investing. Welcome to AlphaFlow!

 

Note: AlphaFlow is available today for all accredited investors.

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About the author:

Ray Sturm, CEORay Sturm is a leading entrepreneur in financial technology, and is currently the CEO of AlphaFlow. Prior to launching AlphaFlow, he founded RealtyShares, one of the P2P industry’s top platforms for real estate investing. His early career in finance included investment banking at Bear Stearns, restructuring at Lazard Frères and private equity at CCMP Capital.

Ray has a BBA-Finance from the University of Notre Dame and a JD/MBA from the University of Chicago.