AlphaFlow
Today we’re very excited to make a big step forward as a company at AlphaFlow. From our earliest days, our mission has been to give real estate investors the best experience possible. When we first launched last September, that meant providing investors with a consolidated dashboard so that they could finally track their entire portfolio in one place. As one of the founders of RealtyShares, I often heard about this challenge from our customers who loved us, but also had accounts in 5 to 10 other platforms and couldn’t keep track of all of their investments.

Fast forward 6 months, and we were also providing a place to see deals from the industry’s top platforms all in one place – the AlphaFlow Exchange. Many investors, including institutional investors, wanted something more passive though that allowed them to invest across the industry instead of with just one platform. To solve that, we launched the industry’s first multi-platform fund. You make one investment, and we build a portfolio for you (Fund 1 launched in February and after huge demand, we’ll be launching Fund 2 in a couple of weeks).

Our investors today are tracking almost $100 million of investments on AlphaFlow, and we’ve found we have an amazing group with fantastic insights on what would create a better investment experience for them. Two new features we’re excited to launch today with Fund That Flip are:

Simple Account Creation: Don’t have an account with Fund That Flip yet? We will seamlessly create one for you on the spot.
Direct Investing: We continually heard from investors who wanted to invest in deals across the industry without hopping from site to site. Beginning today, you can invest in Fund That Flip deals without leaving the AlphaFlow Exchange.
Note: We’re excited to launch today with an exclusive deal for AlphaFlow users (accredited investors only)!

We’ll be rolling these new features out with other platforms soon, making the investment experience better than ever.

I’ve known the Fund That Flip team for some time and we thoroughly dug in on both their company and their underwriting rules, and have found their real estate knowledge and processes to be incredible. They have a focus on residential debt in geographies they know very well. As we move later into the housing cycle, I think that type of specialization will lead to real benefits for investors around the industry.

I couldn’t be more excited about the industry today. We’re seeing success in firms like RealtyShares and Realty Mogul, both of which have wide mandates on asset classes and investment types. We’re also seeing the emergence of specialization with companies I really love like PeerStreet and LendingHome and Patch of Land (it says a lot when Jason Fritton can recruit someone with a track record like Paul Deitch from Oaktree to join as CEO), and of course, Fund That Flip. We’ll be writing a lot more in the coming months to help you all get to know the industry, and I hope to get to know as many of you as possible as we build an amazing investor community!

AFx This week, we were very excited to launch The AlphaFlow Exchange. For the first time, investors can easily see and compare real estate crowdfunding deals from some of the industry’s most respected platforms. The Exchange, or the AFx, has been live about 24 hours now and in that time, we’ve sent $181,000 in investments to the platforms. The feedback from our users has been tremendous. Ryan Smolek wrote in to say, “The Exchange! Finally! I can’t remember being this excited to see a filter on a Web page.” We’ll see if we can bring things more exciting than a web filter next, Ryan! 🙂 AlphaFlow is now working with investors in a number of ways, so I wanted to step back and tie this all together. As an active investor in the crowdfunding space, many of you have a number of accounts around the industry. There are many great platforms out there, and while some are fading away, we’re also seeing a number of new platforms being launched by experienced real estate professionals. The result is more fragmentation. That creates challenges in not only managing your portfolio, but also in building it the right way. AFx SquareWe could do better as an industry, and so we launched AlphaFlow! We asked ourselves, “As an investor, what would I want the experience to be?” I’d want to see all my investments in one place. I’d want to have analytics around my portfolio, making it easy to understand if too many of my deals were correlated. And of course, I’d want easy ways to invest across the industry – both passively in funds and actively by seeing all of the available deals. In short, I’d want a platform that empowers me to do with my P2P portfolio what E*TRADE lets me do with my stock portfolio. I’m proud to say that we’re moving down that path today. We’re fortunate to now call some of the industry’s most respected platforms our partners. The AFx was launched with Fund That Flip, Patch of Land, PeerStreet, and RealCrowd. This week we’re excited to also add LendingHome, and we’re working through a backlog of additional platforms which will be joining soon. We’re already talking with one platform about closing your investments on AlphaFlow, so building and managing a diversified portfolio will be easier than ever.

Partners

From day one, our mission at AlphaFlow has been to help investors like you easily build and manage a P2P portfolio. We’ve come a long way since we launched in September, but we’re just getting started! If you have any suggestions or requests, please feel free to reach out to us directly. We’re excited to get to know you! Welcome to the future of real estate crowdfunding! Note: AlphaFlow is available today for all accredited investors in the United States. If you enjoyed this post, sharing it on Facebook, LinkedIn or Twitter with the links below is the highest form of flattery. Thank you!

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.

This week we launched AlphaFlow to bring transparency and insights to your peer-to-peer investments. Today’s investors are having an increasingly difficult time keeping up with portfolios that can often include 5-15 different platforms. Two years ago, I co-founded what is today one of the industry’s leading platforms. I had responsibility for making sure investors had a great experience. There were challenges my customers had though that no single platform could solve. Many platforms were doing a good job of presenting deals, return metrics, and notifications, but each was doing it in a unique way and customers were having an increasingly tough time checking multiple dashboards. For some, this meant simplifying things and only working with one or two platforms, even if that resulted in missing out on good deals. Others tried to keep up, but few had any understanding of how their portfolios broke down by geography, asset class, sponsor, or even platform. Diversification is one of the fundamentals of prudent investing, but simply understanding your portfolio was becoming impossible in today’s P2P environment. So what got us here? We’ve come to a tipping point with a combination of (1) fragmentation in the P2P/crowdfunding world (there are over 700 platforms out there today), (2) huge strides by these platforms in building a supply of investment opportunities, and (3) massive investor interest. Historically, Wall Street went through patters of disrupting itself with new products, followed by stabilization. Now that pattern itself has been disrupted, with P2P Investing creating new opportunities and leaving Wall Street to knock on the door to try to participate too. The new equilibrium is now defined by constant disruptions. This creates the types of challenges that only a true third party like AlphaFlow can solve. My favorite part of working at RealtyShares was always dealing with our customers and helping to bridge the knowledge gap for new investors – many of whom are wildly successful in careers such as medicine, law, or technology – and professional investors who had traditionally dominated these type of investments. Given the increasing number of great (and not-so-great) platforms out there today, we wanted to give investors a single platform to both understand their existing portfolios and to make intelligent decisions on how they invested going forward. We’re already partnering with some of the industry’s leading platforms, and we’ll continue to add more. There’s a long way to go, but it’s going to be an exciting journey and we’re going to help you absolutely transform the way you understand and manage your P2P portfolio. If you’re reading this and haven’t yet joined, we hope you will here!

If you enjoyed this post, please share it on Facebook, LinkedIn or Twitter with the links below. Thank you!

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.

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