In today’s economy, it is difficult for the average person to purchase real estate for the purpose of housing, let alone investing.
Cadre is an online real estate investment platform that is trying to give more opportunities to the average person.
What is Cadre?
Cadre is a startup company that has been operating in New York City since 2014. The 40-person team is made up of former Facebook, Google, and Square executives.
The team is led by 27-year-old Ryan Williams. Former employee for Goldman Sachs and Blackstone as well as a Harvard alumni.
The young entrepreneur has gathered a team of high-profile investors and advisors for his start-up company. He raised $68 million from Peter Thiel’s Founders Fund, Alibaba founder Jack Ma, real-estate moguls Jared and Joshua Kushner, DST’s Yuri Milner, Goldman Sachs, and others.
TPG’s co-CEO Jon Winkelried and SL Green’s president Andrew Mathias are the current advisors for Cadre.
Williams envisions his platform for investors to purchase a stake in a real estate property to be as easy as buying a product on Amazon.
The company still needs to obtain a larger following but Williams believes that will soon change.
“Sooner than you think we’ll be unlocking access for more people,” said Williams. “Building trust at top of the investing ecosystem… as we create trust we’ll be able to create greater distribution to more than the institutional folks.”
Currently, Cadre is still not a large marketplace such as giants like Amazon.
Historically, real estate has outperformed the S&P but due to it’s limited access and difficult processes the public often refrains from participating in investing.
Furthermore, Williams believes traditional models for investing in commercial real estate are not as efficient or powerful as they could be.
“The winners will win on distribution and scale,” said Williams. The real estate tech market is “a fast-paced marathon.”
How Does Cadre Work?
Cadre is an online platform that allows carefully vetted sellers known as “operators” to post commercial real estate deals. The listings on Cadre are diverse. Buyers can expect to see stores, apartment buildings, and offices for sale.
Cadre prides themselves on the fact that they are utilizing modern technology in order to empower users through direct access, lower fees, and greater transparency.
There are over $45 billion of real estate transaction experience that the Cadre team collectively brings from leading institutions. The company is partnered with top operators who have operational and local market expertise for each transaction.
Cadre invests with their clients and gives ongoing oversight and asset management responsibilities for the investors.
Professionals from leading technology firms work in the engineering and product teams.
The company strives to utilize the best technology and data from differentiated sourcing, efficient underwriting, and a transformative client experience for its platform.
There is even an option for wealthy imdividuals or “qualified purchasers” to spend $500,000 or more on certain properties. Current properties listed on Cadre are all in the U.S. but there are plans to expand internationally.
“If I said to you, ‘How would you go about buying that building over there?’ You’d probably say, ‘I don’t know,’” said Williams in a Tech Insider interview. “If you do know, it’s probably because you know a fund. But even then, if you were able to get to that building and that fund, then how do you see what’s going on with your investment?”
Cadre’s Vision
Currently, to invest in real estate, one must be very wealthy and typically will put their money in a real estate fund. The investor must then leave the decision making to experts who control the fund.
Unfortunately, there are rules that force investors to keep there money locked in for years. This leaves no opportunity to sell interest and no real-time updates are provided.
Cadre believes that it can offer the solution to this problem. Investors are desperate for a new change of pace.
Its vision is to make the real estate market truly like the stock market where anyone can easily invest.
“Cadre’s mission is to create a more efficient economy where we can connect the world’s buyers and sellers in opaque assets that have been inaccessible to many,” said Williams.
In any case, many people will be keeping a close eye on Cadre over the next few months.
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