Aaron McDanie of Tycoon Real Estate, a crowdfunding approach to investing in real estate, got a hostile reception from the Sharks, who called his pitch “risky” and “a rip-off” on Season 6, Week 15 of Shark Tank which aired on January 30, 2015.
McDanie explained the online process: “All you have to do is enter the amount of money you’d like to invest, go through a simple online process, and once the investment goal is met you’re a real estate investor. Then you can sit back and enjoy the profits you get from the appreciation and the cash flows of the property.”
He was seeking a $50,000 investment for 5% of the company. However, after hearing the pitch for just 60 seconds, Mark Cuban said “I hate it. I’m out.” The rest of the Sharks, including real estate expert Barbara Corcoran, eventually declined his offer over concerns about the concept. However, Kevin O’Leary offered $50,000 for a 50% stake, but stipulated the company must be re-branded under his own name. McDanie refused the offer.