Real Estate Marketing & Beyond
The real estate investing landscape has changed dramatically since the big bust of 2008. Confidence is still not what it once was, and for smaller investors, the risks seem to outweigh rewards. However, an article I read from Forbes back in the summer of 2017 shined a light onto diversified investments into commercial as "the way." With this in mind, news from an innovative social platform for real estate investments called "iintoo" led me to request an interview with the company's Managing Director, Shoshana Winter.
Here is the gist of our Q & A session.
Phil Butler: Can you outline briefly an ideal/characteristic iintoo deal or investment?
Shoshana Winter: Iintoo is designed to remove every possible barrier to entry for investors who are interested in exploring alternative asset classes to help diversify their portfolios, but don’t want to take the time to develop the expertise necessary to choose the right deal. The ideal investment for iintoo is, therefore, one that makes it through a long and rigorous vetting process which is designed to weed out less opportune deals. Our platform leverages AI as well as the expertise of our team to identify those deals that meet the core standards in our methodology: commercial-grade, income-generating (value-add capital improvement projects for senior living, student housing and multi-family, etc.), in B and C geographies, and in short exists (no later than 36 months). These criteria have historically demonstrated positive returns for investors, even through economic downturns.
Our goal is to deliver double digit returns on each investment and to do so in short timelines so investors can either roll their returns into another deal or be able to use that yield to fund home improvement projects, vacations or special occasions like a wedding. This vetting process has resulted in iintoo offering only 53 projects to investors out of the 4000 plus deals they’ve seen over the past 4 years. This strategy has returned a 16.78% average annual yield across the 11 exits completed. iintoo’s vetting of these projects does not end with the offering - our team of analysts and business development professionals stay involved in every step of the project ensuring that the developers they are working with stay on time and budget according to the business plan of each project. iintoo will be in contact with the sponsor, do site visits and deliver quarterly reports to its investors to provide complete transparency on progress through the life of the project.
Phil Butler: What’s the benefit that iintoo provides to investors looking to capitalize on the CRE market?
Shoshana Winter: Iintoo provides easy, direct access to curated, premium commercial grade real estate deals designed to drive maximum yield in short time frames. That means that many investors can enjoy these yields in a very immediate way. For example, if they want to see their retirement funds deliver higher returns than traditional products (IRA’s), they can invest a portion of their retirement fund in iintoo through the use of a custodial trust that we make available to them, which allows them to invest without the tax penalties of withdrawing their retirement funds early. iintoo takes a lot of the guesswork out of the process by only offering deals that are designed to deliver the highest potential yields. This means that investors do not need to be real estate experts to make these investments. In addition, iintoo offers investors the industry’s only Equity Protection Investment Community (Epiic) platform which protects them against a loss of value of real estate projects. Epiic adds a two-layer protection benefit for investors who are seeking the safety of principal protection for their initial investment.
Phil Butler: How does iintoo help investors limit risk?
Shoshana Winter: Iintoo does everything it can throughout the process to ensure the best possible investor experience. Though no investment is risk free, iintoo’s methodology is based on a proven model, a highly rigorous criteria-driven vetting process, hands-on management of the investment, and equity principal protection. (See above)
Phil Butler: I've taken note of the fact iintoo does not offer investments for those interested in the luxury market. How can your platform/service be helpful to these investors?
Shoshana Winter: Iintoo’s model is based on over 30 years of historical performance of commercial grade real estate investments across multiple geographies. The reasoning for focussing on B and C grade geographies and commercial grade projects (vs. hotels and retail) is they have proven to deliver better yields even through economic downturns. iintoo is looking to capitalize on what is delivering returns vs. other criteria; our analysts and business development team continue to evaluate deals across the spectrum and if new opportunities present themselves that serve our goal of maximum potential returns than we might expand our offerings to include those kinds of deals. But, the guiding principle is always about insuring the most positive outcome for our investors.
I asked the iintoo executive about her company's successes/profits for investors, which she expressed in terms of a 16.78% average annual yield for our 11 exits. According to Ms. Winter, by using the iintoo platform, accredited investors can now access commercial-grade real estate opportunities without the normal barriers to entry smaller investors usually face. iintoo specializes in grouping investors from all over the country into bigger, multi-million dollar positions and investing that in commercial grade real estate like hotels, student housing, storage facilities, as well as multifamily complexes.
