Why These Alternative Investments are Risky

04 Dec

alternative investmentHere’s a look at three of the more risky alternative investments:

  1. Virtual Currencies — Virtual currencies like Bitcoin can look promising, and they’re novel enough that young investors may consider them attractive. However, it’s not likely that these currencies will ever replace national currencies entirely. They’re also not issued by any bank, nor do they have any backing from a well-financed financial institution. And you’re never going to hold one in your hand. All of these factors make virtual currencies risky investments because it’s impossible to predict how or whether they will hold their value.
  1. Business Startups — There’s something exciting about putting your money into an initial public offering only to find the company that issued the stock be worth billions of dollars in a few years. Early investors in Microsoft are sitting pretty today. But bear in mind that these success stories, while they do happen, are rare. It’s hard to pick winners with startups because so many factors determine the success of a company, and all of them are out of your control. Statistically, four out of five IPOs trade below their initial price within the first five years of life.
  1. Commodities — Commodities are often prized for their ability to diversify a portfolio, but if you aren’t familiar with how the commodities market works, you can lose a lot of money. True, they can be a hedge against inflation, but they are often quite volatile and are known to experience huge price spikes and dips within a short period of time.

One Less Risky Asset Class You’ll Really Like

Real estate is often considered a risky alternative investment, as well. However, they’re not going to make more of it. This scarcity means that, over time, real estate values have increased. One caution: If you’re thinking of using your primary residence as a real estate investment, think again. Separate your personal assets from your investment assets.

Real estate crowdfunding (RECF) is somewhat different than investing in real property. it’s a great way to diversify your portfolio without the downside of long-term holding, which is less liquid than many investors like. With RECF, you can invest in short-term projects that deliver an ROI throughout the term as well as a lump sum return on the back end.

Another benefit to RECF is that you can get in for as little as $1,000. That means you don’t have to tie up large sums of your assets in an illiquid investment that won’t pay you returns for years.

As with any investment, if you’re thinking of opening a real estate crowdfunding account, study the market before you invest. Don’t go too far in too fast. In fact, use RECF as a vehicle for allocating your assets more widely to hedge against potential losses across your entire portfolio. Alternative investments can be rewarding if you approach them with a cool head. In other words, sit on the sidelines before you make an investments. Sleep on it for 24 hours, enjoy a 30-day cooling off period so that you can study the market and the platform before making your first investment.

Other Topics That Shayanfekr Can Speak On include (not limited to): 

  • Debt Investor vs. Equity Investor: Whats the Difference?
  • Is Real Estate Crowdfunding Important for Portfolio Diversification
  • Real Estate Investment Opportunities
  • Real Estate Financing for Sponsors
  • Tips for Investing for Real Estate With Your IRA
  • Crowdfunding Real Estate Loans
  • What is P2P, or Peer to Peer, Lending?
  • Why is Everyone Investing in Real Estate Crowdfunding?
  • 5 Ways Fintech is Changing the World
  • Marketplace Lending Vs. Traditional Real Estate Investing
  • Why You Don’t Need A Real Estate Broker
  • The Ultimate Investment Comparison: Stocks vs. Bonds vs. Real Estate
  • A Guide to Real Estate Investing
  • What is Marketplace Lending?

More topics include: 

  • What is an Accredited Investor?
  • What’s a Solid Investment in a High Volatility Market?
  • Why Are Fewer Technology Companies Going Public?
  • Passive Investing With Real Estate Crowdfunding
  • Are Tech Stocks On The Rebound?
  • Eye-Catching Home Staging Trends for 2016
  • Four Tips to Maintain Balance Between Saving, Spending and Investing
  • 5 Reasons to Invest in a Real Estate Crowdfunding
  • 4 Marketplace Lending Sectors: Growth Mode for Investors
  • Real Estate Crowdfunding as a Passive Investment Vehicle
  • Private Online Lending: Money through Real Estate Crowdfunding
  • Real Estate Crowdfunding: The Next Big Alternative Investment Vehicle
  • Passive Investment Net Returns of 10% or More? Yes Please.
  • Is a Real Estate Crowdfunding Investment Strategy Right for You?
  • Access To Funds For Real Estate Development


They have an interesting story – this company was founded by Main Street kids who had a dream to partner up with Wall Street, and made it a reality. They translate the street talk of real estate hustlers to wall street financial reports. SHARESTATES is the portal that connects the two so they can understand each other and work together.

The entire senior management grew up in families that lived check to check. Growing up, they maintained jobs as movie theaters attendants, valet parking, food delivery and more – they defeated all odds to before powerful men in various industries.

About Allen Shayanfekr, Esq.

Allen Shayanfekr, Esq. is the CEO and Founder of Sharestates, and one of the brightest minds in real estate marketplace lending. Allen is currently admitted to practice law in NY and CT. His legal expertise in securities law is paramount to Sharestates’ ability to promote and produce public and private offerings in a highly regulated space. Allen interacts regularly with the Securities and Exchange Commission, in addition to spearheading daily operations at Sharestates. His knowledge has led Sharestates to become a top 7 real estate platform in less than 1 year—working towards becoming a top 3 platform by the end of 2016.

Prior to launching Sharestates, Allen joined Atlantis National Services as their National Title Producer and Account Executive, holding approximately 28 Producer’s licenses across the Country. Allen’s other credentials include acting as an editor of the Municipal Lawyer (a quarterly journal published by the New York State Bar association). Allen received his J.D. Magna Cum Laude from Touro Law Center where he graduated in the top 6% of his class and his B.A. in Political Science from New York University.

About Sharestates

Sharestates is a real estate investment marketplace that allows individual and institutional investors to participate in rigorously vetted debt and equity offerings. All of the offerings on Sharestates’ platform have passed through a 34-point underwriting process.

To compete in the market, Sharestates leverages proprietary technology and a close partnership with The Atlantis Organization, which – founded by Radni Davoodi and Raymond Y. Davoodi in 2004 – has become one of the nation’s leading title agencies. This partnership provides Sharestates with access to and credibility among an expansive network of real estate developers, investors and lenders, cultivated over the course of more than $4 billion in transactions that Atlantis has managed over the years.

Since Sharestates.com launched in 2015, it has closed more than $126 million in origination, across dozens of loans, with zero loss of principal and net annualized returns ranging from 10 to 20 percent. For more information, please visit http://www.sharestates.com.

Photo credit: zcopley via Visual hunt / CC BY-SA

Tags: , , ,

No comments yet.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.