Origin Investments Review 2021 – Is It Worth Your Time?
Origin Investments is a real estate crowdfunding platform for accredited investors who want to diversify their portfolios. They focus on multi-family properties and the minimum investment is typically $100,000. It’s a great platform to learn more about for investors who don’t mind the illiquidity and a 1.25% annual net asset value fee.
At a Glance
What we like
- Invest in equity or preferred equity of diversified real estate properties.
- Invest in the top 14 real estate markets in the United States.
- Transparent fees and procedures.
- Due diligence on the properties is done for you.
What Needs Work
- The platform is only for accredited investors.
- The investment minimum is high at $50,000 to $100,000.
- There’s no secondary market.
- Accredited investors with a long investment timeline and a lot of money to invest.
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:
- Las Vegas
- Salt Lake City
- San Antonio
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.
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.
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.
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
- All data stored and collected on Origin Investments is encrypted using the highest level of security.
- There aren’t any hidden fees. Origin Investments is transparent about the costs upfront.
- The two Origin Investments founders invest in all of the properties they offer to their investors. They are just as invested as you.
- All team members of Origin Investments have a lot of real estate investment experience.
- You can get one-on-one personal support if you need it.
- All Origin Investments go through an LLC which means all tax benefits pass onto the investors versus stopping at the REIT, like typical real estate investments.
- It’s only open to accredited investors.
- You need a minimum investment of $100,000.
- There aren’t a lot of funds to choose from, usually one or two at a time.
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.
Typical crowdfunded real estate means investors invest in REITs, but with Origins, you invest directly in the funds. There isn’t a fund manager or middle man — you invest directly with Origins — meaning fewer fees for the investor and more profits. It also means investors get much more information about the properties in the fund.
While the founders’ investment amounts vary depending on the fund, they are always its biggest investors. Like you, they are highly invested in the fund and want the best for everyone.
The exact number of properties in each fund differs based on the fund itself. Still, you can always rely on a large amount of diversification, with an average of a dozen properties in each one.
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