possible cheap way to directly own commercial real estate?

Question

Hi all,

I have an interesting post. A friend told me this morning that there is now a platform that allows both non and accredited investors to invest in blockchain secured commercial real estate for only $50. It seems interesting, but I don't understand how it works. why would they be limiting the sign-ups to 5000 people?

Im confused. Is this a scam?

Let me know your thoughts.

Curtis Bluth · Answer

This is most likely a crowd funding platform. Most of these platforms are not scams, however you're returns are going to be brutal compared to if you had invested in a deal yourself or a trusted partner. I would strongly recommend you first look for mentors/partners in your local area to get into commercial investing before throwing your money at the wind and hoping it sticks.

There are 4 general steps to investing: education, acquisition, operation, disposition.

If you don't feel confident in your knowledge base before investing in something, then I strongly suggest learning more about that platform OR real estate investing first before allocating your dollars to investments.

Hope this helps.

Alex Roter · Answer

Yes, interested in NNN industrial in Texas. Feel free to message me directly

Ronald Rohde · Answer

Sure, do you need products? I have 150,000 sq ft of NNN industrial

Ronald Rohde · Answer

These things are all doomed to fail. Fractional, arrived, etc. How the heck can a PM decide whether to take on new debt at 6.25% 5 year term vs. floating 24 month debt? Big decisions, and if investors don't agree, property goes into default when their loan is due????

Nathan Phan · Answer

Good morning Dan,

I think that we are unfortunately not understanding each other. We are not an asset manager or brokerage. We’re only a marketplace that connects buyers and sellers. As a buyer, you’re obligated to actively manage your own investments by voting in a governance program with other owners. This is not a passive investment like a REIT. Lofty does not make any management decisions on your behalf and we have no ability to affect the income or appreciation generated by the underlying property. This is equivalent to you purchasing a rental property with a few of your family members or friends and collectively managing it together. This type of real estate investment is one of the most common forms of real estate investing in the US.

Dan H. · Answer

Do you understand why syndicate sponsors give so little control to the LPs?

The asset manager is every bit as important as the PM and possibly more important seeing they direct the PM

Would you join a syndication if the sponsor (asset manager) had never been an asset manager before?   what if they had only been an asset manager as a part of a large group that only was required to invest $50 to be part of the asset management?  This is what you have here whether the investors recognize this even if they are too novice to understand the issue.

As indicated, I can see how this is going to work great (sarcasm).

Nathan Phan · Answer

Thanks,

Nathan

Dan H. · Answer

Asset management by people who only invest $50.  Cannot see how that can fail (sarcasm).

Eliott Elias · Answer

Find the deal and parter with someone 50/50 with no money

Nathan Phan · Answer

Hello Andrew,

As I had said earlier, we are not a crowdfunding site. We are just a marketplace. For example: AirBnB, Zillow, Amazon, Ebay, etc. On the blockchain side however, what I mean is that whenever an investor invests into a property, their share will be recorded on the blockchain, this allows the ability to provide an indisputable and instantly verifiable proof of who owns the property and whether or not there are any open claims against that property. Not only that, but the property itself will also be listed in the blockchain, which will make the property's history transparent and unchangeable. As for if we will be offering virtual commercial real estate investing, it is something we are considering, however we are currently focused on regular commercial real estate at this point.

Please feel free to let me know if you have any other questions.

Thank you and have a great weekend!

Nathan

possible cheap way to directly own commercial real estate?

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