With home prices reaching new highs, entering into real Estate investing could seem out of grasp. Even online real estate syndications often require a high net worth, income, or large upfront investments. 

What Is Concreit?

Concreit is a technology-enabled fractional real estate investment company. Based out of Seattle, the company allows everyday investors to buy shares of a non-traded, real estate investment trust. Investors can invest as little as $1 in Concreit’s REITs.

Real Estate Investment Trusts operate a lot like mutual funds for real estate. In a REIT, investor money is pooled together, and a manager makes investments and manages cash flow on behalf of investors.

What Does It Offer?

Fully Managed Real Estate Portfolio

Concreit is a non-traded Real Estate Investment Trust (Concreit Fund 1) that invests across a broad array of commercial real estate. The real estate assets owned by the fund are purchased, maintained, and managed by the trust. 

Investors cannot select which real estate deals they want to participate in.

Historic 5.5% Yield Paid Weekly

Concreit differentiates itself by typically giving investors weekly payouts. Investors have historically earned a 5.5% annual yield on their investment assets. This payout isn’t guaranteed by Concreit but has been paid steadily since 2021.

Option to Reinvest Dividends

Investors who are serious about compounding their growth can choose to reinvest their weekly dividend payouts into more Concreit shares. Investors who choose to reinvest, get the benefit of truly passive real estate investments.

Set Up Automatic Investments

Investors can choose whether to invest a single lump sum into Concreit or continuously invest over time. Investors who are accustomed to automatically investing using a Robo-advisor or an automatic investment may appreciate how easy it is to set up an investment and invest a set amount each week or month.

1% Management Fee

For portfolios under $5,000, Concreit charges a $5 per month management fee. The company charges a 1% management fee for all investment portfolios over $5,000.

Option to Withdraw Investment Money App

Investors who don’t want money locked up for long periods can typically withdraw their principal investment after one year. 

Withdrawals aren’t guaranteed but Concreit has historically been able to manage the requests by using cash on hand, income, or principal repayments. Concreit will typically be able to honor withdrawal requests within a few days of the request being made.

Those who withdraw sooner than one year will pay an early withdrawal worth 20% of the interest they earned.

Still, the option to liquidate funds is incredible since the underlying assets in the fund are so illiquid.

Are There Any Fees?

Most of Concreit’s investors will pay a 1% management fee based on the size of their portfolio. Investors with portfolios less than $5,000 will pay $5 per month.

When investors want to withdraw money, they pay a 0.1% withdrawal fee on all funds they take out of the fund. 

If investors choose to pull out funds that have been invested less than a year, they’ll surrender 20% of the interest paid. For example, a 5% dividend yield would be reduced to 4%.

How Does Concreit Compare?

Non-traded REITs is not a new concept, and technology and various forms of legislation are making them more prevalent and accessible. Several companies including CrowdStreet and Fundrise offer REIT funds that are very similar to the REITs offered by Concreit. Also, their investment management fees are in line with fees charged by other non-traded REITs.

However, Concreit has a few standout features.