We’ve updated our summary page to make it easier to see how your account is doing, by highlighting your total account value and your paid earnings. The “Total Account Value” graph makes it easier for you to see how your account’s value has changed over time, and the Portfolio Statistics summarizes your current allocations. Though the investment footprint is not a new feature of the AlphaFlow Optimized Portfolios dashboard, it is our clients’ favorite visualization tool! In a single shot, you can see where your loans are allocated across the country.
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New Analytics Section
Our new analytics section provides you with more transparency into your investment. We’ve added a new panel to summarize what states your notes are in, and added a section that shows the servicing status of the notes in your portfolio. Missed payments are a fact of life investing in real estate. With many borrowers out swinging hammers and not at their computers, many perfectly healthy loans will miss some payments. This is why lenders don’t consider a loan in default until a borrower is 60 days late (delinquent) or more on a payment. Even then, it could be because they’re in the middle of selling or refinancing the property and are awaiting a payment before paying off all the back interest and the loan all at once. Be assured, we’re always on top of our lenders to understand what’s going on with the loans in your portfolio, delinquent or otherwise!
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With the introduction of our monthly statements, we made it easier to understand what happened in your portfolio each month. The “Account Activity” section takes a step further, and gives you a summary of each month’s activity in a single place, showing all account inflows and outflows!
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Disclosure: All data presented here is for demonstration purposes only. Past performance is not indicative of future returns. Nothing in this article should be construed as a solicitation or offer, or recommendation, to buy or sell any security. Investors should consult with their own legal, financial, and tax advisors. While AlphaFlow strives to make the information in the article as timely and accurate as possible, AlphaFlow makes no claims, promises, or guarantees about the accuracy, completeness, or adequacy of the contents of this article, and expressly disclaims liability for errors and omissions in the contents of this article.
It’s been an incredibly exciting month at AlphaFlow, as many of our investors hit optimization on their portfolios and we brought on some huge additions to the team to help us better serve you: our clients. On May 15th, we announced that AdaPia d’Errico joined AlphaFlow as COO and I could not be more excited to have her as a partner in setting the strategic vision and growing the company.
The Company’s Evolution
None of the progress at AlphaFlow would have been possible without our close relationships with our clients, who shared both their desires and their fears about investing across the real estate crowdfunding space. As Steve Jobs said, “Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.” We built an unparalleled experience. It just got better.
Two years ago, we launched AlphaFlow with the mission of giving our clients the best possible investment experience. We introduced the industry’s first multi-platform funds last year, giving investors the ability to participate in 75+ of the industry’s best deals with one investment. Though the investment minimum was $10,000, our average investor trusted us with over $50,000. The funds worked well, but they had shortcomings. They were designed to address our clients’ challenges with the current investment model, instead of solving for what they actually needed.
In March, we launched AlphaFlow Optimized Portfolios, completely redefining – and improving – the investment experience. For the first time, investors could access a highly-diversified portfolio of real estate loans in a truly passive way. We do all the work, backed by a sophisticated analytics platform we designed and built, and investors sit back and earn returns with only a low fee. Fintech has been tremendous for investors in creating access to new asset classes, and AlphaFlow has stepped in to simplify investing in real estate loans the same way ETFs streamlined investing in stocks.
To accomplish our goals of building you a complete investment platform, we needed another leader in the company who shared our relentless focus on customer relationships, experience, and service. A leader focused on doing what is best for the client over pursuing initiatives that simply create meaningless vanity metrics. A leader who had earned the trust of both investors and other platforms. Today, I feel lucky to call her my partner.
AdaPia and I met in the earliest days of the real estate crowdfunding industry when we were getting two of the first platforms (RealtyShares and Patch of Land) off the ground. It’s hard today to imagine how small the industry was then, as both platforms have taken off and the asset class has gained international recognition. AdaPia was one of the primary drivers in building that industry awareness with both retail and institutional investors, which starts with building strong relationships.
AlphaFlow’s Focus on the Client Experience
AdaPia and I share a philosophy of quality over quantity that now defines the culture at AlphaFlow. For you, this means with the leadership of our Director of Investments, Miles Deamer (another industry pioneer by way of LendingHome), we’ve taken on a culture of credit over volume. It means we’ve embraced spending on investment analytics over online advertising, and we have embraced the increased cost and time requirements of becoming a regulated company (we are a registered investment adviser) in order to best serve our clients.
To better protect your capital, we’ve bolstered our engineering team to turn our credit model into an analytics platform more robust than anything we’ve seen in the industry. To serve you and your needs better, next month we’ll be introducing a new client relations team to bring a level of attention and care previously reserved for ultra-high net worth individuals.
In focusing on relationships, we’ve found that expertise and returns are not enough. Clients today are seeking a level of personalization that reflects their unique goals, timetables, and risk tolerance. They are seeking someone who truly understands their wants and needs. We’ve started that process with AlphaFlow Optimized Portfolios, but we know we can do a lot more for our clients. Over the next 6-12 months, we’ll be giving you the power to customize your portfolios to match your unique needs. We’ve come a long way since the early days of real estate crowdfunding, but we’re just getting started. The future is bright, and we’re excited to partner with you all in building it!
About the author:
Ray 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.