The most proven way to build wealth is through investing in real estate. Tycoon Real Estate is a crowdfunding platform allowing people for as little as $1,000 to invest in real estate. Aaron pitches the Shark Tank investors in Season 6.
A lead developer is in charge of the development. They have done two proof of concepts. One was a part of a house in San Francisco, and they charge 1.2% of the investment.
Tycoon Real Estate allows exit of investment after one year.
Aaron tells the Sharks that the clients can sell their investment after a year.
Company: Tycoon Real Estate
Entrepreneur: Aaron McDaniel
From: San Francisco, California
Ask: $50,000 for 5% equity
Companies in this episode: Victoria's Kitchen, GreenBox, Tycoon Real Estate, PhoneSoap
Season: Season 6 Episode 616
Sharks: Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, Robert Herjavec
First Aired: 01/30/2015
Deal: No Deal
What do the Shark Tank Investors say about Tycoon Real Estate
- Mark Cuban goes out immediately hearing that you can invest in real estate for as little as $1,000. He smells a lawsuit. Mark is visibly disgusted with the deal. Mark went out because it doesn't protect investors after Aaron says the opposite.
- Barbara Corcoran calls this too spooky and unfair to anyone who invests because they are blind to the lead investor. How does she know he is a good guy, and his projections are right. You have to trust the people behind it. She is out.
- Kevin O'Leary has a billion dollars of people's money that he is responsible for handling. Kevin has a brand, and people trust him because he puts his own money in every deal. The tycoon has no brand. He offers him $50,000 for 50% equity, and he will rebrand his product. Aaron said he would not go over 10%.
- Lori Greiner does not like the idea of investing with a bunch of people she doesn't know. She is out.
- Robert Herjavec says when you deal with the life savings of people who are working towards retirement they need a conservative investment. Tycoon is not a prudent investment. He is out.
Tycoon Real Estate after Shark Tank
Tycoon Real Estate reportedly is acquired by a group of real estate crowdfunding sites in a cash deal according to a report on a crowdfunding site. Today, the website is no longer up and running. I am with the Sharks on this one. Tycoon Real Estate just did not sit right.