Fractional CRE investing platform

[Brandon Beller]

Hello all,

I have found an app that lets you invest $10 for a single token which equals a share in classes A&B CRE buildings. Once you own a share you can start collecting rental income daily as well as gain appreciation of that token. You can also vote on proposals and other things that are to happen to that property you invested in. You don't have to maintain the property in any way. However, they will take 1% of the value of your portfolio at the end of each month eg. your portfolio is worth $100 at the end of the month, they will make $1. I also heard that they will be added a card that rounds up your purchases to the nearest dollar and then reinvests it as well as a social media side where people can see other people's portfolio, gains/losses and follow/message that person. Any ideas on if this is a good platform? Should I use it?

Thanks 

Nick

[Scott Trench]

We see this model come and go every few years in this industry. I am skeptical that this is a model that is likely to take off anytime soon. It's too easy to raise funds from accredited investors in the syndication model, to need to fractionalize the shares. So the only reason to fractionalize the shares is to increase the value of the asset by creating liquidity and hope that the people who buy the fractional shares buy them at a higher valuation. 

I think the better bet, is to either invest with the syndicators directly, or go with a more well-established crowdfunding portal.