If you’ve always wanted to invest in real estate but don’t because of the work and risk involved, check out Origin Investments. This real estate crowdfunding platform allows accredited investors to dive into a created portfolio of diversified properties.

Is it the right platform for you? Find out in my Origin Investments review below.

About Origin Investments

Origin Investments is a real estate investment firm founded by David Scherer and Michael Episcope. The founders have always worked with “crowds” privately investing in real estate. But, after the Tax Cuts and Jobs Act made online real estate crowdfunding legal, they were able to open the platform up to many more people. 

Today, Origin Investments uses its knowledge, technology, and concrete real estate investing strategies to bring in more investors and invest in more real estate. 

How Origin Investments works

Origin invests strictly in multi-family properties. They invest in debt and equity multi-family projects in the top 14 markets throughout the United States, including:

• Atlanta
• Austin
• Charlotte
• Dallas
• Denver
• Jacksonville
• Las Vegas
• Nashville
• Orlando
• Phoenix
• Raleigh
• Salt Lake City
• San Antonio
• Tampa

You can choose from a variety of funds they have available for crowdfunding. Today they have two funds — the IncomePlus Fund and Multi-Family Credit Fund.

The IncomePlus Fund invests in the equity of multi-family properties across the United States. Its focus is income and growth and has an annualized return of 9% to 11%.

The Multi-Family Credit Fund has a hold period of 7 years, focuses on income, and invests in Freddie Mac bonds from different geographic areas.

Origin Investments minimum investment requirements

Origin Investments’ minimum investment requirements vary by fund. They only have two funds, each of which requires a minimum $100,000 investment.

Origin Investments features

Here are the features you should keep in mind when deciding if Origin Investments is right for you.

Investing in funds

When you invest in Origin Investments, you invest in funds, not in the actual property. Origin Investments fronts all the funds, investing in the property and then selling shares to its investors. 

The nice thing about this is you always know your total costs. There are no hidden fees or complex terms. 

Mobile app

Origin Investments has an app that makes it easy for investors to manage their investments from anywhere. The Path by Origins Investment app allows you to check on your investments 24/7. You can also use the app to review any available investment options. 

Resources

If you’re new to real estate investing, Origin Investments offers a lot of information on its website. Even though you must be an accredited investor to use the platform, it doesn’t mean you have experience investing in real estate. 

Customer Service

Investors are assigned a customer service representative and receive their direct email after signing up. If you have a question or need advice, this is the direct link to your advisor. If you have an urgent need, you can also contact the entire team.

Origin Investments fees

Like I said above, Origin Investments is very transparent. There aren’t any hidden fees, and they are straightforward about what you’ll pay.

Origin Investments charges a 1.25% fee of your net asset value annually. If you invest a minimum of $100,000, you’ll pay $1,250 per year. There’s a small catch, though. If you invest less than $200,000, you’ll pay a 2% fee the first year and then 1.25% after that.

There may also be a 0.5% net asset value fee for any newly acquired properties and an additional performance fee on certain funds.

What are the risks?

While all investments have risk, the real estate investments Origin Investments chooses typically have a 60% to 75% loan-to-value ratio reducing its risk of default. Each portfolio is highly diversified, with properties in several markets too.

Who should use Origin Investments?

You can only use Origin Investments if you’re an accredited investor. Even if you are, it’s only for you if you have a lot of capital to invest. Like I said earlier, today, the minimum investment is $100,000. That could change at any time, but for now, that’s a steep investment.

Who shouldn't use Origin Investments?

If you’re not an accredited investor, you can’t use Origin Investments. However, it’s not recommended to invest in Origin Investments if you can't be without the funds for several years. The funds’ timeline changes, but right now, it’s an average of 7 years.

Origin Investments review: Pros and cons

Origin Investments review final word: is it worth it?

If you’re an accredited investor willing to invest at least $100,000, then yes, Origin Investments is worth it. But, you must be able to sit out the holding period, which can be 7 to 10 years. 

I suggest doing your due diligence, looking at the fund documents, and getting as much information as possible before investing your money for what could be as long as a decade.