Concreit Review: An Incredibly Easy Platform for Fractional Real Estate Investing
Historically, real estate investing has been largely limited to the wealthy — people who could afford to buy entire homes, apartments, or buildings as investments. But that has changed markedly in the last decade, with the rise of fintech and investment platforms that aim to democratize investing in real estate.
Enter Concreit, a fractional real estate investing app which gives easy access to a real estate investment fund. It allows anyone to easily invest in minutes and with no investment minimum. And while most real estate investments are highly illiquid – it could take years to access your cash if you purchased a share of a commercial real estate property, for instance – investments into Concreit’s flagship fund are highly liquid and easy to access as cash.
To put it simply, a lot of what Concreit is doing is novel in the real estate investment space. In this comprehensive review of Concreit, we are going to do a deep dive into the app and its features, along with who the app is best for and more. Keep reading to find out more about this real estate investing app.
Table of Contents
What Is Concreit?
Concreit was started in 2021 by two entrepreneurs Sean Hsieh and Jordan Levy. The two were interested in two distinct goals from the get-go with the company – to allow people to invest in real estate with very little capital and to allow that investment to be easily liquid. By putting those two goals into motion, they made real estate investing available to a very broad audience.
“We are democratizing the real estate investing process because everyone deserves equal access to the opportunities that can change their financial situation,” Hsieh said when the app launched in 2021. “When I made a bit of money in my last company, I wanted to invest it intelligently. I saw the opportunity to earn a great APR through private real estate investing, while gaining less correlation with traditional public stocks or bonds markets. But they were only for the already wealthy or required multi-year commitments of capital. Concreit gives everyone access to a real estate portfolio and the ability to have access to withdrawals when they need them.”
Concreit is a hybrid REIT fund – made up of real estate assets and mortgage-backed securities. The assets within the fund are across the U.S. – helping to diversify a person’s investment and minimize any risk.
A big part of what makes Concreit groundbreaking is that it has minimum investment required. When you think of the amount of capital required to buy a real estate asset, the need for thousands if not millions of dollars comes to mind. But with any amount, anyone can buy a proportional share of Concreit’s hybrid REIT.
An investment in Concreit’s hybrid REIT will not only hopefully appreciate over time but it pays dividends to investors (on a weekly basis), which then can get reinvested automatically, helping investors begin to build wealth over time taking advantage of the power of compound interest.
Concreit’s Investment Options
Concreit only has one investment offering as of now its flagship fund, a hybrid REIT that holds a combination of income property and mortgage-backed securities.
Concreit’s Investment Advisory Committee — made up of real estate industry experts — vets hundreds of opportunities to include in the fund, selecting offerings that are going to meet the needs of the fund based on quantitative and qualitative analysis.
While other real estate investing platforms have more investment options than Concreit, the fact that Concreit is open to non-accredited investors (accredited investors are defined as those with at least $200,000 in annual income and a net-worth exceeding $1 million) is an aspect that makes it stand out against competitors that might have more investment options.
Concreit has a lot of features that make it unique in the real estate investing space. Here are the top ones to be aware of:
Its Very Low Minimum
Real estate is known as an investment that requires a lot of capital to get started with – thousands upon thousands of dollars usually, and reserves to be able to cover the investment for the long haul.
Concreit is an option that is truly open to everyone – whether you want to start investing with just $1,000 or have much more to get started with. Its no minimum requirement is truly a rarity in the real estate investing space.
Automatic Investing & Dividend Reinvesting
Concreit has made it really easy for its investors to set up auto-investing in order to build up wealth over time. Investors can pick a schedule for auto-investing that meets their needs whether that is a specific date monthly or even their paydays. It is also easy to change within the Conreit app.
We discussed earlier in this review that Concreit pays its investors dividends. Investors can choose to have those dividends reinvested automatically so they are able to take advantage of the power of compound interest. This is also a feature that users can turn on or off within Concreit’s app.
Both of these features are tailored to the investor who might not have a lot of money to start investing with but is looking to build up wealth over time.
Highly Liquid Investment
Real estate is known as an investment that isn’t particularly liquid. Buy an investment property, for instance? You aren’t just going to be able to pull cash out of it at a moment’s notice like you would a savings account. Concreit is aiming to change that allowing for easy withdrawals. On average, Concreit investors can access cash from their investment within a week, which is essentially unheard of in the real estate investing space.
High Average Returns
No investment has a guaranteed return — as much as that might be nice — but Concreit’s fund has been offering around a 5.5 percent return as of mid-2022, largely outperforming the stock market. Real estate is known for having a steadier return than the stock market, too. And while the stock market has been experiencing turbulence in recent months – real estate has been a bright spot in the economy, and many experts expect that to continue.
How Much Does Concreit Cost?
Concreit charges a flat-rate annual fee of 1%. So, if your initial investment was $1,000, you’d be looking at a $10 annual fee. There are other small fees to be aware of, too, like short-term withdrawal fees – the fees if you need to withdraw funds from Concreit within a year of making an investment. If you need to access funds from Concreit within a year you’ll pay an ACH transfer fee and an early redemption fee.
What People Are Saying About Concreit
We looked at real user reviewers to get a sense of what people have to say about Concreit. One reviewer in the Apple App store said: “Unlike any other investment app Concreit has been a company that has intrigued me since the beginning. I didn’t know that my money wasn’t doing anything for me in my savings account, nevertheless that there’s an app out there that will make me money while I sit back and do nothing. Their staff is always available for any questions regarding the app, but it’s so straightforward, I doubt you will have any to begin with. They also have this unique feature where it lets you know every time you receive a dividend. I get an email a few times a day with this notification, and every time I see it, it makes me feel more and more confident that I made the best decision investing with this company.”
Per another user in the Google Play store: “Concreit is great! Super easy to set up and start earning right away. I really enjoy the real time interest counter and the weekly dividend and reinvestment notifications. The constant reinforcement that my money is being put to work in both real time and through weekly notifications makes me want to keep my money right here (and out of my bank account where I might otherwise spend it). I also appreciate being able to set and forget.”
The ratings within the app store are also strong. Concreit has a 4.1 rating within the Apple App store. It has a 4.5 rating within the Google Play store.
Signing Up & Navigating The App
While Concreit does have a desktop site, to actually use Concreit and invest using the platform you need to download the app which is available for free via the Google Play store and the Apple App store. The app is available for both Android and iOS.
Once you have the app, signing up is easy. A few steps you’ll need to take:
- The app will take you through a basic authentication of your mobile phone and email address
- You’ll link your bank account to make an initial investment
- Once you’ve made an investment and have full access to the dashboard you’ll be able to make adjustments to your account such as upping the amount you auto-invest or stopping participation in the dividend reinvestment feature
- Within the dashboard, you can also opt-in for push notifications so you can receive updates in real-time
Where Concreit Shines
Concreit shines in a couple of key ways. The first is the minimum investment requirement – people can start investing with any amount. That’s almost unheard of in the real estate investment space. Concreit is also an easy way for investors at every level to gain access to dividends, which Concreit for the most part pays out weekly and then can reinvest on its investors’ behalf. Dividends can also increase over time if a property value or rent increases for an investment within the Concreit fund.
The third area that Concreit shines is the ease with which investors can access their investment. With Concreit, you can withdraw your investment at any time. Simply put in a withdrawal request within the app, and Concreit will fund your withdrawal – usually in about a week.
Fourth, and this is key, it’s a comparatively low-risk investment. No investment has a guaranteed return, and it’s always possible to lose money, but Concreit’s investments in fixed-income residential real estate and collateralized commercial are relatively stable in comparison to alternatives like investments in the stock market.
Is Concreit The Best App For You?
Our favorite thing about Concreit is that it’s an app that anyone – and we mean anyone – can download and use. The founders of the app aimed to democratize real estate investing, and they have. Anyone with just $1 can start investing in real estate with Concreit.
For those looking for an option to diversify their investment strategy, and are looking to enter into real estate investing as a safely as possible, Concreit is very much an option worth exploring.
And considering how easy it is to download Concreit’s app to make an investment, it doesn’t take long to get started once you’ve decided to invest.