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Cadre Review 2024: Invest in Commercial Real Estate

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If you want to create a sound and diversified investment portfolio, you should consider real estate. One of the many reasons is that this asset class has a low correlation to other popular assets, such as stocks and bonds.

There are many benefits associated with investing in real estate, such as passive income, tax advantages, diversification, cash flow, and leverage. Real estate allows investors to access investments that historically have generated excellent returns.

And that’s where Cadre comes into play.

In this Cadre review, we’ll have a deeper look into the available features, how to open an account, and its pricing and fees. We also check out the pros and cons and who this platform is for.

Cadre

Overall Rating 3.6

The Modest Wallet Overall Rating (Our Rating Methodology)

Bottom Line: Cadre is a real estate crowdfunding platform allowing accredited investors access to commercial real estate investment opportunities. Cadre was founded by Ryan Williams in 2014.

Account minimum

3.5

Account fees

3.5

Investment selection

3.5

Liquidity

3.0

Features and tools

3.5

Ease of use

4.5

Security

4.5

Customer support

4.0

Best for:

  • Long-term real estate investors
  • Accredited investors
  • Access to commercial real estate deals

Pros:

  • Access to funds and individual real estate deals
  • Robust vetting and due diligence process
  • Access to a secondary market

Cons:

  • Accredited investors only
  • High fees for some deals
  • Low deal flow

What Is Cadre?

Cadre is a real estate investment platform that provides accredited investors with access to institutional-level commercial real estate.

The innovative company launched in 2014 and relies on proprietary technology as well as industry experience to find the best investment opportunities, match them to the platform’s members, and generate outsized risk-adjusted returns.

The company has a short but intriguing track record and offers multiple ways to invest. The management team and its employees also invest, which shows that they believe in the deals they source. With its transparent and engaging user experience, Cadre can be an exciting alternative for your real estate investments. 

Cadre Homepage
Source: Cadre

How Does Cadre Work?

After opening an account, accredited investors can browse the few available offerings and invest alongside the management team and Cadre’s employees.

The investment options currently include standalone deals as well as a diversified fund. All deals are created as separate entities and are safe even if the parent company undergoes financial distress.

Cadre has an extensive due diligence process and relies heavily on technology and data analysis to source only the very best commercial real estate investments nationwide.

The company always aims to identify the most promising high-profile markets with excellent fundamentals. Ultimately, less than 5% will make it on the platform as Cadre prefers quality over quantity.

Account Minimum

Although the minimums fluctuate for specific deals on Cadre’s platform, the company mentions a base investment of $25,000 for its Cadre Funds.  

Requirements to Open an Account

Cadre only works with accredited investors in the USA, so you must submit documentation proving your accredited status during the signup process. On Cadre’s FAQ portal it lists a few acceptable options to verify you’re an accredited investor, including W-2 forms, 1040 tax forms, or letters from broker-dealers, SEC-verified financial advisors, or licensed attorneys. Although 

Cadre works with some international clients; these must meet even higher standards as “qualified purchasers,” meaning they hold over $5 million in investments or an aggregate of $25 million with other entities. 

Besides these certification standards, Cadre asks for standard know-your-customer (KYC) info from clients, including their name, email, and phone number. 

How to Open a Cadre Account

If you want to open a Cadre account, the process only takes two minutes and is straightforward. Simply click on “Get Started” on the website. 

You will then be redirected and must answer two short questions about what kind of investor you are and whether you are accredited or not. From there, you are required to enter your full name, phone number, and country of residence. Once you are done, you get access to the platform and its listings. You will also get an email from the Investor Relations Team to set up an intro call if you need one. 

However, you will only be able to invest if you are an accredited investor. Generally, you are accredited if one of the following criteria is true: 

  • Annual income greater than $200,000 for the last two years
  • Joint household income of more than $300,000 for the last two years 
  • Net worth of $1 million (excluding your primary residence)
Cadre Sign Up
Source: Cadre

Cadre Features

The company wants investors to reach their investment goals and offers multiple ways to achieve them. From beginner-friendly portfolios to standalone deals to secondary market options, Cadre provides features real estate investors are looking for. 

Minimum Investment$25,000
Account Fees1.50% (asset management fee), up to 0.50% (administration fee), up to 3.50% (commitment fee) and 1.00% (transaction fee)
Time Commitment5+ years
Property TypesCommercial Real Estate (CRE)
Advertised Returns8.7% (average returns)
DistributionsQuarterly
Secondary Marketyes
Accreditation Requiredyes
Self-Directed IRANo
1031 ExchangeNo
SupportPhone (+1-800-356-4951) and Email ([email protected])

Investment Types

When you invest with Cadre, the types of projects you can be involved in are multifamily apartment buildings, office space buildings, hotels, and industrial real estate.

Depending on your investment strategy, you will invest in a mix of all these or focus on one specific category. Cadre relies heavily on technology to gain insights into the markets and properties and to ultimately find the best investment opportunities out there.

Cadre Funds 

Instead of investing in standalone property deals, you can diversify your real estate portfolio by putting capital to work in Cadre Funds. These investment vehicles hold multiple real estate assets in Cadre’s portfolio to reduce market volatility and offer investors tax advantages.

For instance, you can use a retirement account like a Traditional IRA to invest in Cadre Funds and enjoy tax benefits on yearly contributions. 

Currently, there are two Cadre Funds investors could choose from: the Horizon Fund and Direct Access Fund II. The first of these funds focuses more on consistent cash flow from “well-occupied” multifamily and industrial properties. By contrast, the Direct Access Fund focuses on value appreciation through significant renovation efforts on real estate investments. 

Cadre Asset Types
Source: Cadre

Deal-by-Deal

If you want to select your deals yourself, then Cadre Deal-by-Deal is for you. That way, you can exercise much more control over your portfolio and invest according to your strategy. As a standalone deal investor, you can stay on the lookout for suitable properties and pull the trigger when a perfect opportunity comes along. Still, you need $50,000 as a minimum investment.

Currently, Cadre Deal-by-Deal offers three different investment types: Cadre Fund Co-Investments, Opportunity Zones, and the Secondary Market. 

Because the company knows some investors prefer to pick their investments, they usually allocate a portion of their investments to them. In addition, investors looking for deals that offer tax benefits (such as deferred and/or reduced capital gains tax) should look into the OZ program. Ultimately, investors can purchase positions from sellers once per quarter at a discount rate on the platform’s secondary market.

Distributions

Once you are invested either in the Cadre Direct Access Fund or any standalone deal on the platform, you will receive distributions. Your first cash distribution usually arrives three to five months after the initial close. 

From there, you will be paid quarterly distributions, which are paid out around six weeks after the end of every quarter. Still, the timing can vary slightly depending on the involved parties.

Distributions typically come from the operating cash flow and will be deposited directly into your bank account. You will also be able to track these distributions through your investor account and can opt to receive distribution notifications.

Cadre Features
Source: Cadre

Cadre Secondary Market

Usually, investors have to lock up their money for five to ten years when investing in commercial real estate. Not with Cadre. Thanks to its Secondary Market, investors can sell and buy select assets on the platform during the two-week buyer window every quarter. 

The initial hold period is only six months, which provides excellent flexibility. Moreover, buyers have the chance to get a 5% discount on the latest Net Asset Value when entering an investment in the Secondary Market. Plus, Secondary Market investors have more valuable knowledge of the deal’s performance and are closer to the exit stage. Still, limitations apply, and liquidity can’t be guaranteed.

Opportunity Zones

With Cadre, you can also invest in so-called Opportunity Zones. Since 2017, the government has been encouraging investors to deploy money in designated low-income census areas and providing tax benefits in return. 

Suppose you invest your capital gains in these zones. In that case, you might benefit from the deferral or reduction of your capital gains tax. You may even be able to eliminate 100% of your taxes if you hold the Opportunity Zones investment for 10+ years. The latter is also the reason why so many Opportunity Zones projects have held periods of more than ten years. 

Once you sign up with Cadre, the platform automatically creates a Cadre Cash account for you, which is provided by Evolve Bank & Trust (an FDIC member). That way, you can fund your real estate investments using your interest-bearing cash account. This also allows you to deposit and withdraw money regularly.

Cadre Cash Account

The benefits of the Cadre’s Cash account are also very positive: FDIC-insured up to $750k through Cadre’s partner banks. There are no fees or charges for withdrawals, deposits, and transfers. A cash position helps reduce your risk as it isn’t invested in the stock market.

Cadre Performance
Source: Cadre

Cadre Performance 

On Cadre’s Track Recordpage, the company reports handling $4.3 billion in transaction value and distributing over $460 million to its community of 55K investors. Currently, Cadre operates properties in 25 markets in the USA with 50 deals in its portfolio.

Although Cadre doesn’t list the average rate of return from its properties, it mentions that the average annual rate of return for private real estate is 8.7%, with a 5% risk profile.

Cadre also estimates the average cash flow from private real estate to be 5.4% per year using the prior 20 years of data.


Cadre Pricing and Fees

Cadre charges investors different fees depending on the investment they choose. Therefore, understanding Cadre’s pricing and fee structure is vital before investing.

If you invest $100,000 in the Direct Access Fund, for example, Cadre charges a one-time commitment fee of 3.0% upfront, an annual administration fee of 0.5%, and an annual asset management fee of 1.5%. At least there is no performance fee to pay. 

In contrast, Deal-by-Deal investors must pay a transaction fee of 1.0% of the share price and an annual asset management fee of around 1.5% on the equity value invested on the platform. However, this fee is deducted from the distributed cash flow. 

Also, when buying or selling assets on the Secondary Market, Cadre asks 1.5% from the buyer as well as the seller.


Cadre Security

The company states that the integrity and security of its members’ data is a top priority. That’s why they follow industry standards and look at potential threats from three angles: physical security, corporate IT security, and production security. 

Moreover, your investments with Cadre are safe as every deal is a separate legal entity. So, in case the company goes bankrupt, your investments won’t be at risk because management can’t use your stakes to pay their obligations. Besides, real estate developers manage the properties instead of Cadre. 

The only aspects that could be interrupted are the payout of distributions and documents to investors, as Cadre handles these. But this would only last until a new managerial firm is found.

Cadre Portfolio
Source: Cadre

Cadre Customer Support

There are three ways you can get in touch with Cadre’s customer service. The company’s business hours to respond to your requests are between 9 am and 6 pm EST from Monday through Friday. 

You can send an email either to your assigned sales representative or to the general investor relations address ([email protected]). Moreover, you can reach out to Cadre via phone (+1-800-356-4951). Unfortunately, other options, such as a webchat, are not offered at the moment.


Cadre Ease of Use 

Cadre has a clean and intuitive desktop layout, which makes it easy for new users to navigate. Although you can pull up this website on a mobile phone, there’s still no Cadre app for iOS or Android devices.

There aren’t any client reviews of Cadre on sites like the Better Business Bureau (BBB) and Trustpilot.

There are a few Reddit threads on Cadre, but these also don’t have much info on what it’s like to work with the company first-hand, and some have complaints about the company’s lack of communication. 


Cadre Pros Explained

  • Cadre provides access to institutional-level real estate: A major reason people get interested in opening a Cadre account is this platform gives users direct access to high-quality real estate deals they can’t find anywhere else. Cadre’s easy-to-use platform makes it easy to research deals and choose the optimal investment option. 
  • The management team has massive experience in the financial industry: Cadre has an A-class team of founders and managers with years of experience at prestigious real estate firms. Goldman Sachs, The Blackstone Group, and Fortress Investment Group are just a few big names Cadre’s executives have previously worked for. 
  • Investors can choose between a fund and standalone deals: If you’d prefer to put all your money in one attractive deal or diversify your investment across multiple properties, you have both options with a Cadre account. Also, within Cadre Funds, you can choose between portfolios focusing on growth or passive income. 
  • Management and employees have skin in the game: When you sign up for Cadre, you’ll invest alongside the management team. Cadre’s open investment in its assets helps boost confidence in the quality of its offerings and its incentive to monitor their portfolio carefully. 
  • Liquidity through a Secondary Market: Although real estate is an illiquid asset class, Cadre provides a way for investors to convert their holdings into cash via the Secondary Market. According to Cadre’s homepage, it aims to offer liquidity for investors at least once every quarter. 
  • Investments can be placed in Opportunity Zones: If you’d like to enjoy generous tax deferrals, you can use capital gains from other investments to invest in Opportunity Zones through Cadre. This strategy not only cuts your fee exposure but also allows you to invest in economically disadvantaged areas with a high potential for growth and community renewal. 
  • Thorough due diligence and selective vetting process: Cadre wants to ensure all of the deals it offers on its website have a high potential for cash flow or capital appreciation. To do this, the Cadre team carefully inspects every property in their portfolio to ensure exceptional quality.

Cadre Cons Explained

  • Only open to accredited investors: Accessibility isn’t Cadre’s strong suit. Since this platform only works with accredited American investors, you need to meet high minimums for net worth or yearly income to sign up for an account. 
  • Liquidity isn’t guaranteed: Although Cadre strives to offer quarterly liquidity to its clients, it doesn’t guarantee you’ll have this option. Investors still have to prepare to hold onto an illiquid asset if they buy property through Cadre’s platform. 
  • $50,000 minimum investment for standalone deals: Another con for Cadre is it has high minimum investment requirements compared to other real estate-focused sites, especially for standalone deals. Even Cadre Funds have minimums of $25,000, which is a significant amount of capital to tie up in illiquid assets. 
  • Focus on quality over quantity leads to a low deal flow: Since Cadre has a rigorous screening process, it doesn’t have the widest selection of real estate deals. It may take a few months before investors find the standalone property on Cadre that most suits their risk and return profile.
Cadre Opportunity Zones
Source: Cadre

Cadre Alternatives

Cadre does many things right in the eye of real estate investors, and the track record clearly illustrates that. However, you might also want to know what other platforms offer. Here are two alternatives: 

Cadre vs. Fundrise

A popular real estate investment alternative also open to non-accredited investors is the crowdfunding platform Fundrise. It allows you to invest in commercial and residential real estate portfolios similar to the Cadre Direct Access Fund.

However, costs are much lower. For example, users can start investing in real estate with as little as $10. That’s massively lower than Cadre’s $25,000 if you just want to invest in a diversified fund.

Unfortunately, Fundrise doesn’t offer any standalone deals. To further appeal to more advanced investors, the platform provides four additional account levels that unlock features such as IRA investing, a customized portfolio strategy, or access to private REITs.

Looking at the fees, you will find that Fundrise charges about 1% in fees, which is slightly lower than what Cadre charges. Still, Cadre’s realized IRR of 8.7% clearly outperforms Fundrise’s 5.29%, which justifies the higher fee. Read our full Fundrise review to learn more.

Cadre vs. CrowdStreet

To compare Cadre to a similar platform, we included CrowdStreet. Like Cadre, CrowdStreet allows only accredited investors to back diversified funds and individual deals. Still, you can choose a professionally managed investment portfolio if you meet the platform’s criteria.

Both platforms have a similar minimum investment requirement of at least $25,000. But, one thing that clearly separates the two is that investors don’t pay any account or management fees on CrowdStreet.

This is relatively unique and a huge benefit as you can invest more money. Read our full CrowdStreet review to learn more.

CadreFundriseCrowdStreet
Our Rating

3.6

4.4

3.8

Fees1.50% (asset management fee), up to 0.50% (administration fee), up to 3.50% (commitment fee) and 1.00% (transaction fee)1.0% per year0.50% to 2.5% (Funds); Project fees vary
Account Minimum$25,000$10$25,000
PromotionNoneAdvisory fee waived (*12 months)None
HighlightInvest in individual real estate deals or fundsAccess to private real estate dealsAccess to commercial real estate investment opportunities
Best ForHigh net-worth individualsLong term investorsHigh net-worth individuals

Compare Cadre

Find out how Cadre stacks up against the competition.


Who Is Cadre Best For?

Cadre is best for high-net-worth accredited investors interested in adding commercial real estate to their portfolio or aiming to expand their current positions. Plus, they should have the financial resources to invest at least $25,000 to $50,000 from the start and deploy it for at least five years.

If you are looking for high returns while reducing your exposure to volatile stock markets, the company is also an exciting choice. Investing alongside financial experts and large financial institutions is something not many platforms offer.

Depending on your strategy, you can choose between a diversified fund investment or standalone deals, including investments in Opportunity Zones. 


Cadre Review FAQ

We know that you might want to know a bit more about Cadre and its offerings. Therefore, we provided some FAQs and our answer below:

Is Cadre Safe?

First of all, no investment is 100% safe. However, Cadre does a great job of finding profitable investments and a great deal of sponsors. None of their separately created entities has lost any money so far, and their positive streak may continue.

Plus, the company has tremendous financial knowledge and is trusted by various renowned financial institutions. These are excellent conditions for investors looking to dabble in real estate. 

Is Cadre Only for Accredited Investors?

At the moment, yes. Cadre’s offered real estate investment opportunities are more sophisticated than public REITs and automated portfolio investments.

That’s why the SEC restricts access to investors who have a lower need for protection as they are financially knowledgeable of unregistered securities.

How Does Cadre Make Money?

Cadre makes money by charging investors fees for investing on the platform. Their primary source of income is (upfront) one-time transaction fees, commitment fees, administration fees, and asset management fees. 

Is Cadre a Good Investment?

If you have at least $25,000 to $50,000 to invest in real estate, Cadre is a player to consider. While real estate investments usually require a hold period of five to ten years, the company provides a Secondary Market if you need to end your position earlier.

Plus, their realized returns consistently outperformed their targeted returns.

Does Cadre Offer a Secondary Market?

The short and sweet answer is yes. Investors have the chance to buy and sell investments once a quarter within a two-week window. However, liquidity and finding a match can’t be guaranteed.

Moreover, you are required to pay a 1.5% transaction fee on the net asset value to Cadre, no matter if you are a buyer or seller. 

When Does Cadre Distribute Dividends?

Distributions typically occur 3 to 5 months after the initial close of each deal. Quarterly distributions typically occur within 6 weeks after the end of each quarter.

Does Cadre Offer a Mobile App?

No, the company doesn’t have a mobile app at the moment. However, their website is mobile-optimized, making it easy to use your smartphone or tablet to browse investment options or track your distribution status.

In A Nutshell

  • Minimum Investment: $25,000
  • Fees:1.50% (asset management fee), up to 0.50% (administration fee), up to 3.50% (commitment fee) and 1.00% (transaction fee)
  • Promotion: None
Cadre

on Cadre’s website


Final Thoughts

Real estate is an essential part of a diversified portfolio. More often than not, commercial real estate provides excellent upside and allows you to create wealth. While this particular asset class was reserved for the ultra-wealthy until recently, platforms such as Cadre democratize the market and provide institutional-level real estate to investors.

Although the company’s track record is relatively short, with only four realized deals so far, the outlook for the future is exciting. Using technology and fundamental analysis is an excellent way to source only the best investments across the United States. 

If you qualify as an accredited investor and have $25,000 available to invest, Cadre might be an exciting choice for your next real estate investment.

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