Cadre offers accredited investors direct access to institutional-quality assets. The minimum investment of $25,000 is among the greatest of real estate platforms, although the historical return of 18.2% per year is also high. Cadre is a good fit for high-net-worth investors who want their money to make them money.
An accredited investor has access to some of the best investment options that can help them increase their net worth and build generational wealth. Once they meet requirements , they can access certain accredited investor opportunities that can be highly lucrative.
There are a few investments geared for accredited investors such as crowdfunding, real estate syndication, convertible investments, REITs, venture capital, private equity real estate, interval funds, and hard money loans.
We’ve already reviewed the best real estate crowdfunding sites for non-accredited investors. Now, we’ll go over one of the best options for commercial real estate investing in our Cadre review.
Why Should You Invest in Real Estate?
Commercial real estate is top of mind for many investors looking to diversify their financial portfolios. Offering an opportunity to gain passive income, as well as long-term capital appreciation, commercial real estate has historically proven to hedge against inflation and tends to still do well during a downturn in the market.
The inclusion of real estate in a multi-asset portfolio is designed to reduce volatility and enhance returns. Real estate can also generate stable, predictable cash flow. That is why many professional investment managers suggest a portfolio allocation of 10% or more to real estate investments.
But many investors do not have anywhere near those recommended allocations to real estate. Why? It takes time to research opportunities and raise money for real estate investing.
Data about properties and their potential value is hard to come by more importantly. Additionally, the time frame required for commercial real estate investing is typically quite long: it can lock up capital for close to a decade.
What is Cadre?
“We want to usher in a new era of institutional real estate investing for individuals, where they can invest with our experienced team and alongside institutional investors, in a way they’ve never been able to do before”
Ryan Williams, Founder & CEO
For over six years, Cadre’s innovative platform has given individual investors direct access to highly curated commercial real estate investments together with some of the largest financial institutions in the world.
Members of the Cadre platform benefit from the company’s rigorous technology-driven, experience-led investment process that offers greater transparency, continuous windows for liquidity, and low fees.
While transforming the real estate investing world, Cadre embraces the opportunity to strengthen the communities in which they invest — which they feel is critical to developing a thriving society.
Cadre’s mission permeates every aspect of the investment lifecycle with a single goal in mind: to help make real estate more accessible, transparent and affordable to a greater number of investors.
Cadre offers accredited investors direct access to institutional-quality assets. The minimum investment of $25,000 is among the greatest of real estate platforms, although the historical return of 18.2% per year is also high. Cadre is a good fit for high-net-worth investors who want their money to make them money.
How Does Cadre Work?
Unlike a crowdfunding platform or Fundrise alternatives, Cadre funds each deal offered on its platform. With an investment committee that averages over 25 years of experience, collectively having managed tens of billions of dollars of capital across real estate cycles, asset classes, and risk profiles, Cadre brings a wealth of knowledge to commercial real estate investing.
Their tech-driven approach expands data availability and helps speed the asset selection, acquisition, and investment management processes.
This type of institutional-level investing is not typically available to individual commercial real estate investors. The opportunity to invest alongside some of the largest institutions, using the same process, benefitting from the same investment experience, gives members of Cadre’s platform a leg up over the traditional crowdfunding site.
Technology Advantage
Cadre leverages data science, machine learning, and proprietary tools and systems to augment the three key components of the investment process:
- Advanced Market Selection – Granular analytics help Cadre’s investment professionals identify markets with a high potential for growth: The Cadre 15¹.
- Seamless Asset Acquisition – 400 million data points help Cadre’s acquisitions professionals underwrite deals more efficiently
- Optimized Asset Management – Proprietary software allows Cadre to track asset performance and to process data at a faster pace than traditional asset managers.
Whereas legacy real estate investment managers keep data availability to a minimum, Cadre’s platform provides up-to-date details on each opportunity, with transparent performance along the way, in an easily accessible format for individual investors.
Groundbreaking Liquidity
Cadre’s platform can shorten the time frame an investor needs to maintain their commitment to a long-term real estate investment. Legacy real estate investments can tie up capital for 5-10 years, but with Cadre’s Secondary Market, investors have the potential to sell select assets during one of their quarterly secondary windows.
No other institutional-level platforms provide this potential for liquidity.
How to Invest with Cadre
Investors can come on board with Cadre by selecting individual properties Deal-by-Deal or on the Cadre Secondary Market, or by making an investment into the Cadre Direct Access Fund.
The Fund works well for those who prefer to automatically diversify into commercial real estate, allowing them to invest in a highly diversified portfolio of multifamily, industrial, office, and hotel properties across high-potential markets across the United States.
Cadre partners with experienced operating partners to carefully select each Fund investment. They provide a diverse mix of institutional-quality investments across risk and return profiles, asset classes, and markets. To build a balanced portfolio, they pursue investments in the core plus, value add, and opportunistic strategies with a primary focus on value-add returns for the fund.
In the end, the Cadre Direct Access Fund is designed to balance risk and return through careful portfolio construction.
Cadre Competitors
The real estate sector has undergone many changes because of technological progress. It’s now common to see buyers browsing the Internet for properties by using real estate investing platforms like Cadre.
Without a doubt, technology has changed the real estate industry in so many ways. There are many crowdfunding platforms available that you may have heard about already. Here are some of the main Cadre competitors so you can make a better decision about which real estate investing platform to use.
| Platform | Minimum Investment | Fees | Annual Returns |
|---|---|---|---|
| Cadre | $25,000 | 1.5% | 18.2% |
| Fundrise | $10 | 0.85% | 12% |
| CrowdStreet | $25,000 | 0.50% – 2.5% | 17.1% |
| Realty Mogul | $5,000 | 1% – 1.25% | 14.9% |
Cadre vs Fundrise
- Summary: With Fundrise, you can invest your money in a portfolio filled with real estate investments with only $10.
- Minimum Investment: $10
- Fees: 0.85% asset management fee per year
Fundrise is a crowdfunding platform suitable for new real estate investors because of its initial minimum investment of $10 compared to Cadre’s minimum investment of $25,000. Similar to other crowdfunding real estate apps, investors pool their money to buy residential and commercial properties.
After a quick signup and filling out your investor profile, you can access and monitor your Fundrise investment account’s performance, explore real estate investment options and be updated with the latest real estate developments in your newsfeed.
Fundrise’s goal is to build the best real estate investing experience and offers a 90-day money back guarantee, making real estate a smart choice for any investor’s portfolio. There are a few Fundrise alternatives on the market, but nobody beats them. Plus, you don’t need to be an accredited investor to use Fundrise.
Fundrise is a very easy-to-use app that allows individuals to access crowd-funded real estate investing. This option is best for users who want to make money consistently and let their money make them money.
Cadre vs CrowdStreet
- Summary: CrowdStreet gets you unparalleled access to institutional-quality real estate deals online. Register for a free account and start building your real estate portfolio.
- Minimum Investment: $25,000
- Fees: 0.50% – 2.5%
CrowdStreet is a crowdfunding platform that lets regular folks invest in the real estate industry, which was once reserved for wealthy people. Through CrowdStreet’s Marketplace, investors have access to dozens of deals across every asset class and risk profile, allowing them to choose the right investment opportunity for them and their portfolio. It has the same minimum investment requirement of $25,000 however it is open to all investors.
CrowdStreet is an online marketplace where you can choose from available real estate investments. CrowdStreet allows you to:
- CrowdStreet is an excellent platform for investors who want to diversify their portfolio with real estate assets
- It offers valuable information to make real estate investments easy to understand
Each deal undergoes a comprehensive review process for inclusion on the Marketplace and CrowdStreet shares much of the information they gather with investors so they can make more informed investing decisions. CrowdStreet has some of the highest deal flow volume of any online platform, and it’s important that investors understand they do so while maintaining its commitment to only presenting them with institutional-quality deals.
Want to get unparalleled access to institutional-quality real estate deals online? Register for a free account and start building your real estate portfolio.
Join the nation's largest online private equity real estate investing platform, ranked Best Overall Crowdfunding Site of 2023 by Investopedia. Get unparalleled access to institutional-quality real estate deals online. Register for a free account and start building your real estate portfolio today.
Cadre vs RealtyMogul
- Summary: With RealtyMogul, you can diversify with thoroughly vetted commercial real estate with the potential to generate income and grow in value.
- Minimum Investment: $5,000
- Fees: 1% – 1.25%
RealtyMogul offers real estate crowdfunding for nonaccredited and accredited investors. RealtyMogul offers you another way to access real estate deals that have more liquidity than other real estate investing apps.
It has a lower amount minimum investment of $5,000 and typical management fees of 1% to 1.25%. If you wanted to diversify and can meet the investment minimums, RealtyMogul can help you do just that.
Its innovative platform streamlines commercial real estate investing and offers a wide variety of options for investors. If you wanted to grow your portfolio then RealtyMogul is one of the most user-friendly Fintech platforms on the market.
Diversify with thoroughly vetted commercial real estate with the potential to generate income and grow in value.
Who Wins?
With a lower asset management fee and the best historical annual returns, Cadre is the clear winner for accredited investors who want to invest in top-quality investment opportunities.
Getting Started with Cadre
To become a member, simply head to the Cadre website to begin the process. You’ll answer some questions regarding who you are, your investing objective, and then gain full access to their site to browse opportunities.
The bottom line: Cadre offers top-quality investment opportunities that open up a world of possibilities to grow your portfolio, backed by an experienced investment committee.
| Minimum investment | $25,000 |
| Management fees | 1.5% annual asset management fee Up to 0.5% administration fee Up to 3.5% commitment fee 1.0% transaction fee |
| Asset classes | Commercial real estate |
| Account types available | Real estate fund, individual deals |
| Features | Opportunity to invest in: Diversified portfolio of properties in high-growth markets Individual deals Tax-advantaged investments Deals that can be purchased and sold on secondary market |
| Distributions | Quarterly distributions |
| Best for… | Accredited investors looking for diverse real estate opportunities |
Cadre offers accredited investors direct access to institutional-quality assets. The minimum investment of $25,000 is among the greatest of real estate platforms, although the historical return of 18.2% per year is also high. Cadre is a good fit for high-net-worth investors who want their money to make them money.
¹The Cadre 15 is a list of metropolitan statistical areas periodically identified by Cadre as commercial real estate markets with strong potential for risk-adjusted returns. The Cadre 15 is developed through a combination of quantitative and qualitative analysis, including predictive analytics and on-the-ground intel. Quantitative analysis involves forecasting two-year growth projections for each market and asset class based on various variables known to drive market appreciation including but not limited to population growth, employment, rent growth, new construction, and occupancy. Qualitative analysis involves a review of quantitative data by our industry experts. There is no guarantee that an investment in a Cadre 15 market will be successful.
Cadre makes money through its annual and transaction fees. Investors pay a 1.5% annual asset management fee and an administration fee of up to 0.5%, depending on the size of their investment. Investors with over $1 million invested with Cadre see a reduced administration fee of 0.25%.
FAQs
Cadre is primarily a platform for accredited investors however its fees are reasonable. Cadre makes money through its 1.5% annual asset management and an administration fee of up to 0.5%. It is important to note that if you have over $1 million invested, the administration fee is reduced to 0.25%.
Distributions are typically made quarterly from available operating cash flow and are automatically deposited into your bank account. Size and timing of distributions depend on the business plan and performance of each transaction. You will be notified of upcoming distributions and are able to track your distribution history through your Cadre login.
Cadre’s Secondary Market, where investors have the flexibility to buy and sell positions in ongoing deals. And after a one year regulatory hold period, investors have the potential to sell their investment on the secondary market, thus increasing their liquidity options and giving buyers the opportunity to enter properties through secondary market investments.
Can international investors participate in Cadre real estate investing? Generally, as a non-US investor you must be a qualified purchaser to invest with Cadre. Generally, an investor is a qualified purchaser if the investor (1) holds investments greater than $5M or (2) is acting on behalf of other qualified purchasers who, in aggregate, own and invest greater than $25M in investments. (Our website and offerings are directed solely to persons located within the United States.
If you live outside the United States, it is your responsibility to fully observe the laws of any relevant territory or jurisdiction outside the United States in connection with any purchase of membership interests, including obtaining required governmental or other consents or observing any other required legal or other formalities.
The minimum investment amount is $25,000 for the Cadre Direct Access Fund and $50,000 for deal-by-deal investing. Investors on the platform range from qualified individuals to larger groups and institutions committing more sizeable amounts.
Cadre Cash is an interest bearing savings account. The bank services for Cadre Cash are provided by Evolve Bank & Trust (“Bank”), Member FDIC, through its technology partner.
Related Resources
- How To Start Investing In Real Estate With 10k
- How To Start Investing In Real Estate With 50k
- Real Estate Trends: What To Expect
More Real Estate Investing Reviews
- Groundfloor Review: Invest in Real Estate with as Little as $10
- CrowdStreet Review: Earn Passive Income with Real Estate
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- Fundrise Review: Invest in Real Estate with Just $10
- First National Realty Partners Review: The Future of Commercial Real Estate Investing
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For you: What has your experience been with Cadre? Are you interested in investing in commercial real estate with Cadre after reading our Cadre review? Let us know in the comments below!
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