Concreit

Across FY2019–FY2025, Concreit Fund I has paid $2,091,583 in distributions to investors against $1,887,020 in GAAP net income — a $204,563 excess. That figure reconciles exactly to the accumulated deficit on the FY2025 Statement of Financial Condition. The Operating Agreement and every offering circular explicitly permit distributions from any source including offering proceeds or borrowings. The FY2025 1-K states verbatim that 'distributions will constitute a return of capital to the extent that they exceed our current and accumulated earnings and profits.' The disclosure is forthright; the cumulative pattern is the documented design feature in operation.

Concreit Transfer Services LLC Form TA-2 FY2025 (signed by Sean Hsieh personally as CEO of the transfer-agent entity) reports 5,207 securityholder accounts as of December 31, 2025 across both active Reg A vehicles (Fund I + Series LLC). Concreit markets approximately 40,000 'members' on its website — a 7.7x gap. The 'member' figure is undefined on the platform and appears to capture app users, email signups, and registered prospects rather than the regulatory definition of a securityholder. For any investor-count metric, AltStreet uses the verified TA-2 figure.

Fund I's Operating Agreement (Section 5.2) contains an express fiduciary duty waiver — the Manager has waived all duties of care and loyalty to the Fund and Investor Members, permitted under Delaware LLC law. Investor Members cannot sue for breach of fiduciary duty, only for fraud, willful misconduct, or federal securities law violations. Concreit Series LLC's offering circular by contrast describes the Manager as 'generally accountable to Concreit and each Series as a fiduciary.' Same Sponsor, same Manager team, two fundamentally different legal protection frameworks. An allocation across both vehicles is implicitly accepting two different investor-protection levels.

Fund I (per May 2021 PPM, unchanged through 2024 OC): 1.0% per annum asset management fee on NAV (monthly arrears); 1.0% / 1.5% / 0.75% tiered acquisition fee; 5.0% property management fee on gross rents (kept in-house by Manager affiliate); 0.50% loan servicing fee (Manager-waivable); 1.0% Special Servicing Fee on non-performing loan original value (Manager-discretion classification); 'Other Fees' rate-differential capture (uncapped, Manager-determined); 1.0% Recovery Fee stacking with Special Servicing; 1.0% Financing Fee; 0.25% Disposition Fee; 1.0% Dalmore Group selling commission on NAV. SEPARATELY, Concreit Fund Management LLC charges a $5/month flat platform-level advisory fee on accounts under $5,000 (Form ADV Part 2A) — effective 6.0% annual drag at a $1,000 account. Above $5,000 AUM the flat fee is waived.

Fund I's $200,000 Class A equity investment in Sanctuary Broadway Multifamily LLC (Tempe AZ multifamily, originated May 2022 at 11% preferred return) was transferred at par to a Manager affiliate in FY2023 rather than impaired. The FY2023 1-K Note 3 Footnote 3 states verbatim: 'No provision for loan loss has been recorded and prior receivables for 2022 have been written off.' Structurally, this replaced third-party credit risk with an affiliated counterparty receivable at original carrying value, avoiding the crystallization of a fair-value loss on the Fund I balance sheet. This is editorially distinct from the Columbia Pacific Income Fund I LP impairment in FY2025 ($125K marked down on balance sheet with separate $125K Manager backstop committed). Any no-default or no-loss framing of the track record depends on how affiliated at-par transfers are treated.

Fund I's 2024 offering circular discloses verbatim: 'During a three (3) month period the Company typically redeems up to ten percent (10%) of the weighted average of the number of Investor Shares of the Company held at the beginning of each three (3) month period.' That's approximately 40% annualized capacity — among the more permissive in the non-traded REIT space. Observed FY2023–FY2025 redemption volumes of 30–38% annualized confirm the gate has functioned. The Manager retains sole discretion to amend or suspend the Redemption Plan under six enumerated triggers including general 'best interests.' The 2024 OC also explicitly authorizes the use of new offering proceeds to fund redemptions at Manager discretion. Early-withdrawal discount up to 1.0% linear-amortized over the first 360 days.

Yes — Concreit Fund I and Series LLC both elect REIT status for federal tax purposes. REIT dividends generally do not generate Unrelated Business Taxable Income (UBTI), making Concreit more IRA-compatible than partnership-structured alternatives. The 1099-DIV reporting form is also materially simpler than K-1 alternatives for IRA custodians. Weekly distribution cadence on Fund I supports tax-free compounding inside Roth IRAs or RMD coverage inside Traditional IRAs (with the cumulative return-of-capital identity noted as a downstream basis consideration). Illiquidity-tolerance still applies — no secondary market, Manager-discretion redemption suspension authority, and required 10% gate.

Concreit Series LLC's audit history: Duner & Foote (FY2023, signed May 21, 2024) → dbb mckennon (FY2024, signed April 30, 2025) → Aprio LLP (FY2025, signed May 1, 2026). Three firms in three consecutive years on a vehicle holding approximately $1.54M in total assets. Each transition was disclosed via Form 1-U but the substantive driver (audit quality concerns, pricing, scope of services, consolidation with Fund I auditor, or other) was not explained in primary filings. By contrast, Fund I has had one auditor transition since 2019 inception. The Series LLC instability stands out and is not surfaced on platform marketing.

All three are Regulation A platforms targeting retail investors with 1099-DIV reporting. Differentiators: Concreit's $1 minimum on Fund I and weekly distribution cadence are the most aggressive in the space; Arrived's $100 minimum and nine-entity Reg A structure offer property-level selection (single-family rentals, short-term rentals, plus a Debt Fund); Fundrise operates at materially larger scale ($2.94B AUM, vs Concreit's $10.5M and Arrived's $414M platform-reported figure) with Big 4 auditor (KPMG / Ernst & Young) and independent transfer agent. Concreit's governance posture (fiduciary duty waiver on Fund I) is at the high-discretion end of the Reg A spectrum. Concreit's captive transfer agent is unusual at this size — most peers use Computershare, AST, or similar third-party providers.

Concreit's v3.5 four-pillar composite score is 48.5 / 100 (letter grade D+). This is AltStreet's internal methodology score, not a regulatory rating or investment recommendation. Pillar breakdown: Operational Risk 51.2 (C-), Investment Merit 45.2 (D+), Transparency Alignment 50.8 (C-), Liquidity & Access 47.0 (D+). The score reflects the cumulative weight of the return-of-capital identity, the fiduciary duty waiver, the related-party at-par transfer mechanics, the Series LLC auditor instability, the captive transfer agent structure, and the regressive platform-level advisory fee. See /platforms/methodology for the full scoring framework, calibration anchors, and weighting.