PORTLAND, Ore., Feb. 22, 2021 /PRNewswire-PRWeb/ -- Verivest LLC, a Portland, Oregon-based real estate technology company, today announced the launch of its online platform connecting passive investors with middle-market deal sponsors. Verivest moves beyond the popular crowdfunding model by providing independent due diligence of sponsors, including background checks, track record verification and ongoing portfolio monitoring.
"Real estate investing suffers from a lack of transparency," says Verivest founder Lance Pederson, a 13-year veteran of real estate fund architecting. "There are plenty of worthy, proven sponsors, but also bad actors who pass themselves off as worthy, proven sponsors."
Interest in alternative investments, including real estate, is on the rise. As middle-market real estate investing has become democratized over the past 10 years, accredited investors have turned to crowdfunding, online research, and word-of-mouth to find opportunities. Because these vehicles aren't as regulated as the public markets, investors must often conduct their own due diligence on deal sponsors. Without an independent assessment, many of them have to rely on what the sponsor tells them, which may not be either true or accurate. A dishonorable sponsor who is excellent at marketing and sales or presumed to be trustworthy because of relationships and associations, can fool even the most sophisticated investors. This vulnerability in the process has played a part in many high-profile investment fraud cases.
Verivest allows passive investors to search the platform's network of sponsors by strategy, property type and risk profile. The platform's algorithm ranks results based on the extent to which the sponsors and their performance have been independently verified, surfacing the most thoroughly vetted opportunities to the top. Sponsors earn the status of Verivest Verified when all key principals have passed a background check and signed Verivest's Code of Conduct, demonstrating their commitment to transparency and trust. They earn the status of Verified Gold when all their open opportunities are actively monitored, which demonstrates they are following the rules of the deal's operating agreement and allocating money how they said they would.
Verified sponsors can list open deal opportunities and related information on Verivest's site. Verivest does not, however, recommend any specific deals or provide any investment advice to investors. Nor does it receive any payment based on capital raised by Sponsors. Instead, Verivest relays each sponsor's verified status and certain verified information about the sponsors, and sponsors pay Verivest fees for its listing, verification, and monitoring services.
In addition to enabling investors to make better decisions, the Verivest platform is also a boon to trustworthy sponsors. Committing themselves to independent verification increases their ability to find new investors and get funding for both current and future opportunities.
With his and his team's background in investment management, fund administration and accounting, Pederson has seen first-hand the benefits of this level of transparency. "Building trust is difficult and time-consuming," says Pederson. "With the launch of Verivest we are lifting some of that burden off the backs of investors and sponsors. It's a win-win that lets both sides focus on what's really important: the deals themselves."
To find out more, visit Verivest.com, or contact Lance Pederson at [email protected].
Verivest is a first-of-its-kind platform designed to bring transparency and trust to middle-market real estate investing. Sponsors are verified through background due diligence and portfolio monitoring, allowing investors to more confidently find, assess, choose, and monitor the right deals for their investment goals.
Chris Read, Verivest, +1 410-241-2459, [email protected]
Lance Pederson, Verivest, 410-241-2459, [email protected]