Real Estate Crowdfunding and Tokenization
Hi All,
I am wondering what opinions people have about up-and-coming RE-tech startups that offer crowdfunding platforms or tokenized investment solutions in an attempt to solve the high barrier to entry (accessibility) and liquidity problems in real estate investing (would anyone consider using these platforms as an alternative to traditional real estate investing at any stage in their endeavors?), e.g. (to name a few):
- RealBlocks (https://www.realblocks.com/), only for accredited investors, allows for secondary liquidity from P2P token exchanges for fractions of individual CRE properties
- BuildingBits (https://buildingbits.com/), for both non-accredited and accredited investors, $100 minimum investing in individual CRE properties
- Jointer (https://www.jointer.io/), for both accredited and non-accredited investors, allows you to tokenize your property by creating a land-trust and allowing Jointer to purchase equity in your property in exchange for cash (financed by token holders/investors who are debt financing at an interest rate equal to a CRE index), while you continue to manage your property and split cash-flow and appreciation profits with Jointer. You can refinance down below the conventional 20% equity lenders are limited to
- Patch of Land (https://patchofland.com/), for both accredited and non-accredited investors, focused on up-and-coming neighborhoods, typical loan APR of 9-10% and LTV of 70%
- Fundrise (https://fundrise.com/), for both accredited and non-accredited investors, advertised as better returns than a REIT, indicates the exact properties in the investment fund, $500 minimum
- CrowdStreet (https://www.crowdstreet.com/), only for accredited investors, single property CRE equity crowdfunding