A Critical Investor Review: What Every Sharestates User Needs to Know

1. Borrower Risk Ratings—Not What They Seem

Sharestates presents itself as a platform with “sophisticated underwriting” and transparent borrower risk ratings. I personally invested in multiple loans labeled as “A+” risk—ostensibly the highest rating available. Shockingly, every single one of these “A+” rated borrowers defaulted on their obligations.

In my view, this undermines any credibility their risk ratings might have. If the platform’s top-rated borrowers have a 100% default rate in my portfolio, what does that say about the reliability of Sharestates’ due diligence and risk assessment? This is not an isolated experience—multiple investor reviews online report similar outcomes with supposedly “safe” loans.

2. Communication on Fund Diversion—Unacceptable Transparency Gaps

At one point, a Sharestates representative admitted to me over the phone that a borrower had redirected funds from the project I invested in to a completely unrelated deal. This is a direct violation of the loan agreement and a breach of trust for every investor. To my knowledge, Sharestates did not formally notify affected investors, nor did they take action to recover or safeguard the misused funds. In my opinion, this is grossly inadequate and raises serious questions about whose interests Sharestates is really serving.

3. Loan-to-Value & Appraisals—Numbers Don’t Tell the Real Story

Several loans I invested in boasted “conservative” LTV ratios—often below 50%. This should mean strong collateral protection, right? In reality, these appraisals were based on optimistic, conditional assumptions—such as the future issuance of permits that were never actually granted. This crucial risk factor was never disclosed before investment. When the permits were denied, the real property value was far below what was claimed in the original underwriting, and recovery became impossible.

It’s my belief that omitting such a material risk from investor disclosures is, at best, misleading and, at worst, negligent.

4. My Actual Default Rate vs. Their Claims

Of the loans I funded through Sharestates, 62.5% have defaulted. The platform publicly claims a default rate below 3%. Even allowing for statistical outliers, such a vast difference is nearly impossible to reconcile without suspecting systematic underreporting or data manipulation. Online forums, investor groups, and public reviews consistently show stories similar to mine.

5. Foreclosure Failures Even With “Safe” Collateral

Perhaps the most alarming trend: even when my loans were secured by first-lien positions and claimed LTVs under 50%, Sharestates was unable to recover the principal in the event of default. If property values were properly assessed, and if first-lien security meant what it should, liquidation of collateral should have covered the loan in nearly all such cases.
The reality was far different. Investors like myself faced total or near-total losses despite supposedly conservative underwriting. The only way this can happen is if:

Either way, the core promise of platform safety is severely undermined.

6. Stale and Incomplete Performance Statistics—Transparency Concerns

A glaring warning sign: Sharestates has not updated its investor performance statistics or loan data since 2023. During a period of widespread defaults and mounting investor complaints, this absence of fresh data feels less like an oversight and more like an effort to obscure the real level of investor losses.

Any platform truly dedicated to transparency and investor protection would provide current, granular statistics and clear communication. Sharestates’ silence speaks volumes.

My experience is not unique. Here are common issues echoed across public forums, review sites, and legal filings:

A responsible platform would:

As of today, in my opinion, Sharestates has failed to do any of the above.

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All content on this site is based on personal experience, public investor reviews, and verifiable legal records. Nothing herein is intended as investment, legal, or financial advice.