Cadre is an institutional-quality commercial real estate investing platform. Here is everything you should know before investing.
This review will look into Cadre to determine whether it really is the best real estate platform available today.
You’ll discover if real estate is the ideal online business for you.
You’ll also find answers to some of the most frequently asked questions about Cadre and real estate in general.
Cadre is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While each has pros and cons, there is a ton of potential for success in investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to seriously think about something:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about using the Digital Rental Method.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what Cadre looks like on the inside, keep reading.
What Is Cadre Real Estate?
Founded in 2014, Cadre Real Estate Investment is an investment platform for commercial real estate. The company has done more than $3 billion worth of real estate business since its founding, generating an average net return of more than 18% on the four successfully closed property deals. Since the platform’s debut, they have paid more than $168 million to investors.
You can invest in either individual commercial property acquisitions or a managed fund comprised of a portfolio of properties.
The Better Business Bureau or BBB has given the company an A+ rating, the best possible on a scale of A+ to F.
How Much Is Cadre Worth?
Cadre has received at least $155 million in capital from significant investors like Andreesen Horowitz, Goldman Sachs, Founders Fund, and the Ford Foundation. According to the most current estimate by PitchBook, the start-up is valued at $800 million. Also present on its Investment Committee are Blackstone, Fortress Investment Group, Four Seasons, and Vornado. Cadre’s headquarters is in New York City.
What Does The Company Cadre Do?
Cadre makes institutional-quality investments in commercial real estate, including multifamily housing, office space, hotels, and warehouses. So if you decide to put money into the Cadre Direct Access Fund, you will have a share in a portfolio with access to all of these kinds of real estate opportunities.
Cadre’s due diligence and screening process set it apart from other real estate investing platforms.
Cadre relies heavily on proprietary technology to assist its investment and asset management teams in selecting, acquiring and administering properties on its platform. Their data science team monitors 50 metro regions across the United States to identify the markets with the greatest development potential, which they refer to as the Cadre 15.
They do due diligence on properties, deal sponsors or developers, and the submarket in which the property is located within these markets. Their goal is to discover properties that have the potential to provide “outsized risk-adjusted returns,” and they only invest in homes that meet very strict criteria.
Cadre also co-invests in every deal done on their platform. This is not true of many of its competitors, particularly crowdfunding platforms, which often merely act as a middleman.
Cadre announced a strategic agreement with DisruptAD in June 2021, allowing Cadre to attract more investors outside the United States.
Cadre also allocates 10% of its future investment capital to operating partners.
Is Cadre A REIT?
There are no REITs or other highly diversified portfolio funds available. Why choose Cadre vs. REITs?
Cadre’s commercial real estate platform offers institutional-level details on each property and a more beneficial investment structure than traditional real estate investing models such as REITs.
Who Founded Cadre?
Ryan Williams, the company’s CEO, founded Cadre. Williams worked in the real estate private equity sector of The Blackstone Group before founding Cadre, where he was involved in more than $3 billion in transactions.
He worked in Goldman Sachs’ technology media division before joining Blackstone, where he was involved in deals totaling more than $5 billion.
How Does Cadre Real Estate Investing Work?
Cadre Real Estate Investing is a fundamental, value-driven investment strategy. They are looking for commercial real estate deals with good risk-adjusted returns. They primarily seek income-producing homes in major US markets with strong fundamentals.
Unlike many other real estate crowdfunding platforms, Cadre aims to increase investment value by actively managing the properties in its portfolio. This is accomplished through a mix of operational and capital upgrades. The company also maintains a balanced allocation, with half its assets invested in multifamily and the rest in commercial, industrial, and hotel buildings.
This method combines the predictability of income from multifamily investments with the higher upside potential of commercial properties.
Office buildings, multifamily residential complexes, and retail establishments are examples of investment properties. Because of the nature of the assets available, investors should anticipate keeping their positions for at least ten years to reap the most benefits.
Cadre Secondary Market
Cadre provides a secondary market for the full or partial liquidation of your holding, unlike traditional real estate crowdfunding platforms that require you to hold your investment until the transaction is finished.
You might be able to sell your stake in a new investment after a six-month holding term on the platform at a target sale price depending on the investment’s net asset value when you put it up for sale. However, the company also warns that there is no guarantee that you will be able to sell your position.
The ability to sell your investments is often made available quarterly and within Cadre-defined time frames. These periods are usually held in the middle of each quarter and last around two weeks.
Cadre will evaluate the sale price of your investment based on particular discounts to their “Marked Value.” This procedure implies that, while you can sell your investment holdings, you will almost certainly do so for less than the entire value at the time of sale.
Investment sales need a minimum of $50,000 and can be increased in $5,000 increments. If you completed a partial sale, subsequent sales in the same property must be for at least $10,000.
The returns from the sale of your investment positions are scheduled to be deposited into your bank account within 45 days of the transaction’s completion.
Secondary market charge: A fee of 1.5 percent of the gross transaction price is paid by both the buyer and seller in a secondary market transaction for a total fee of 3 percent.
Cadre Real Estate Investing Highlights
The minimum investment is $50,000, which is also the required minimum investment per transaction or in the Direct Access Fund.
Allocation and commitment process: To participate in the various investments available, investors can submit a non-binding allocation request. Allocations are made after taking into consideration timing, interest level, and overall opportunity size into account. When your application is accepted, you’ll be sent an online subscription agreement, which you must sign before you may get funds.
Distributions of income: Income is dispersed quarterly and deposited into your bank account. The performance of each investment will determine the distribution amount.
Income tax reporting: The outcomes of your investments will be reported to you and the IRS on IRS Form K-1. It will disclose net rental, interest, and other income and expense data, including depreciation.
Customer care is available through phone and email from 9:00 a.m. to 6:00 p.m. Eastern time, Monday through Friday.
Cadre Real Estate Investing Plans
Although you can invest in individual properties on the site, they also provide a managed investment option & an interest-bearing cash account available to all investors.
Cadre Direct Access Fund
With a single $50,000 investment, your money will be dispersed over 15 to 20 multifamily, industrial, commercial, and hotel buildings in high-growth locations across the country.
The fund, like individual investments, aims to create a combination of annual cash flow and significant potential property value growth.
They use four different investing objectives, each with its own risk/reward balance, as is the case throughout Cadre’s investment strategy. They especially target “Value Add” for the Direct Access Fund, a medium risk/reward strategy with an expected annual return of 10% to 12%.
Cadre Cash
Cadre Cash is a bank account that pays interest and is housed within the Cadre Real Estate Investing platform. It’s instantly made available to all investors and is used to ease transfers to and from a third-party bank account and to fund investments on the platform. This account has no fees connected with it.
Cash held on the Cadre platform via Cadre Cash is insured by the FDIC under the Multi-Bank Program. Cadre Real Estate Investing will set up an account for you as an investor. The account has no minimum balance requirement, and Cadre keeps a minimum of 5% of its cash with leading minority depository institutions.
Funds in the account can be withdrawn & deposited regularly, much like a personal bank account. However, access is restricted to US citizens and those with a US-based bank account.
The account’s current yield is 0.001 percent APY. There are no account fees or charges for withdrawals or transfers with this account.
Opportunity Zones
Cadre offers investments in approved opportunity zones. They are abbreviated “QOZ” and represent properties in economically challenged areas where new investments may be eligible for favorable tax treatment.
How To Join Cadre Real Estate Investing
You should be an accredited investor to invest with Cadre Real Estate Investing. That means you must have earned at least $200,000 per year as a single person or $300,000 as a married couple. You can also qualify if you have a minimum net worth of $1 million, excluding your primary house.
You can click the “Get Started” button on the website to join up for the service.
After that, you’ll be asked to specify whether you’re an individual investor or a financial advisor.
Following that, you must confirm your position as an accredited investor and enter your name, phone number, and country of residence. After that, you’ll provide your email address and create a unique password, and you’ll be in.
Then, you will be given a series of questions to establish your investment objectives, prior real estate investing experience, time horizon, and risk tolerance.
Finally, you’ll be asked to estimate your net worth (but you have the option not to disclose this information). You will access the investment platform once you have completed these procedures.
You will receive an email from the company once you have access to the platform, and you may book an introductory phone call if you choose.
To fund your Cadre account, you must connect it to a US-based bank. Cadre currently cannot accommodate non-US persons or non-US banks.
Pricing For Cadre Real Estate Investing
Cadre imposes two fees for each investment in the real estate market, which are based, at least in part, on a sliding scale connected to the amount you invest in an individual property or the Direct Access Fund.
The first is a yearly fee that includes both an administrative and annual asset management fee. Combining the two charges will result in an annual charge of 2% on investments under $1 million and 1.75% on investments beyond $1 million.
There is also a one-time commitment fee based on the amount of your investment which ranges between 1% and 3.5% of the investment.
Is Cadre Legit?
Cadre is 100% legit.
But, when it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming a real estate investor, you’ve got way better options than Cadre.
Keep in mind, I don’t get paid to promote any of the programs I review. I personally think real estate is a great business model, but you could end up leaving way too much money on the table.
Can You Make Money With Cadre?
Yes, you can! Cadre can help build your portfolio with institutional quality investments. But it also has a high minimum investment requirement.
Also…
There’s a lot that comes along with real estate that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money with real estate, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
Are There Any Alternatives To Cadre?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
Is Cadre A Scam?
So, time for the $1,000,000 question – is Cadre a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of using the Digital Rental Method).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Read Our In Depth Breakdown Of The Top 5 Real EstateOpp Courses For 2024
Some of my friends are Digital Rental Method that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, using the Digital Rental Method might be for you!
What Is My Top Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, using the Digital Rental Method is for you.
Why?
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
With the Digital Rental Method, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.
using the Digital Rental Method, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort to create the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: With the Digital Rental Method, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities like Cadre, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.
