Multifamily Investing on the Blockchain - has anyone started?

Question

There are providers who allow real estate investing on the blockchain where 50k is not the minimum. you do have to be accredited. I am actually in the process of getting approved. Has anyone else started investing with any of these companies?

I know their names but don't want this post to get flagged for bringing them up when I have no care whatsoever to advertise for them.

Cheers!

I know their names but don't want this post to get flagged for bringing them up when I have no care whatsoever to advertise for them.

Cheers!

Bobby Shell · Answer

What is cool is you can buy fractional shares anywhere from $50-140 for token for instances. Meaning you are not forced to put 50k+ in a deal with increments of 10k.

I am actually going to invest in a few deals with less than $500 and see how they do over the next year. The partner I am looking at focuses in Detroit and section 8 areas. So I love the ability to invest small amounts in more volatile assets.

THAT SAID... because the money printer goes BRRRRR, I would not be surprised if section 8 does incredibly well because the government will quickly pay those bills with all these UBI talks going on!

Always eager to learn more myself :) Thanks for chiming in!

Bobby Shell · Answer

This is exactly how it is structured. Typically DAI or a stable coin is paid via meta mask (chrome extension) and the cash flows are distributed daily to your personal wallet. It is SEC regulated like other syndications as well.

Jesse Stahl · Answer

It sounds like you might just buying a token? I'd be very wary at that point. Make sure it is deemed as a security token (backed by something tangible) and not a utility token (used only as currency in the system).

There's a lot of talk of moving stocks and bonds to the Blockchain as security tokens, I don't see why REI trusts/funds (especially if they are publically traded) would be any different. Although personally I see syndications working better as a series of smart contracts whereby you send your Ether to the contract wallet and you have a system of payments set in the code.

Jesse Stahl · Answer

I could see this being very interesting on an Ethereum platform backed up with smart contracts. I'm wondering what are the underlying frameworks these funds are working with?

There's potential for less fraud, and for more seamless allocations of dividends if done correctly.

Steve Morris · Answer

"real estate investing on the blockchain"

Anyway you can nuance the name?  I'm curious.

However, I have no clue, beyond maybe more secure deposits, of what it would do for real estate investing.

Blockchain AFAIK is used for transactional security.  Hence mostly with Bitcoin.  I guess it would also allow you to hide the transactors, but not getting why that is important except for some very select instances.

Bobby Shell · Answer

To be determined ... I am still doing research myself to figure this out.

Bobby Shell · Answer

Yes sir! Shoot me a PM

David Acosta · Answer

Hey @Bobby Shell -I haven't invested myself, but it seems to be gaining traction or at least interest. From the conversations I've had, one of the main benefits appears to be the ability to supply a secondary market for shares issued through a syndication. Overall, this provides an immediate liquidity opportunity for investors. Again, I'm incredibly uneducated in the space but tracking.  Some great insights can be found here: https://jobsactlawyers.com/

Ozzie Sezen · Answer

@Bobby Shell

Thanks for the investment option with blockchain (Token),

Does it provide Tax depreciation benefit?

Dave Clinton · Answer

Hey Bobby,

I haven't heard of investing with real estate via block chain. I own bitcoin assets but I never heard of real estate options. Can you give me info. I'd love to find out more!!