Everything was going swimmingly for RealtyShares just over a year ago.
The real estate crowdfunding startup has just purchased one of its biggest rivals, Acquire Real Estate, and had plans to grow its investment in commercial and multifamily real estate, as well as “fix and flip” and construction loans for single-family housing.
Then the company ended up selling its residential lending business to Lima One Capital and shifting its focus entirely onto commercial and multifamily lending.
But now, one year later, the company has fallen on hard times and will be laying off much of its staff and stop accepting new investments on its platform.
According to an email sent to the company’s investors (which was obtained by HousingWire), RealtyShares has been unable to secure new operating capital and will be shifting away from active investing.
Therefore, the company is laying off an unknown number of employees who were focused on originating new business.
But the company is not shutting down entirely. According to RealtyShares, the company will now be focusing on servicing its existing investors and the assets it currently manages.
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