Mission/Vision Statement
is to empower retail investors in taking control of their financial future and achieving their investment goals. We strongly believe that every person should have the chance to explore investment opportunities that can help grow their wealth and generate passive income, regardless of their level of investment knowledge or the amount of capital they have available.
To create great customer experience every possible moment and give people more than they expect
Company Purpose
Real estate has always been a popular investment option for individuals looking to diversify their portfolio and create lasting wealth. However, conventional real estate investing typically demands a significant upfront capital and entails intricate and time-consuming transactions, making it less accessible to the average investor. The advent of blockchain technology is changing this landscape by offering more accessible and streamlined opportunities for real estate investment through tokenization.
The company’s objective is to enhance accessibility to real estate investment and enable more people, regardless of their financial or geographical constraints, to invest in real estate.
The Issue
Real estate stands as the largest asset class worldwide, with the estimated value of the global real estate market reaching a staggering $228 trillion. Surprisingly, only a mere 3% of the global population has chosen to invest in this lucrative sector, while over 80% recognize its potential as a sound investment opportunity. This stark contrast reveals a colossal disparity – the world’s most abundant source of wealth remains largely inaccessible to the majority.
- The existing challenges in real estate investment can be attributed to two key factors: the inherent illiquidity of real estate assets and the
- substantial upfront capital required for such investments.
These obstacles hinder widespread participation in this field.
Real Estate is Highly Illiquid
The primary drawback of investing in real estate is its lack of liquidity. Unlike stocks and other investment options, real estate transactions can take several months, or even years, to complete, making it challenging for investors to quickly access their funds. This lack of liquidity can pose significant issues for investors who require immediate cash, such as during unexpected financial emergencies or when presented with new investment opportunities.
On average, it takes approximately 30-45 days from the acceptance of an offer to the day the new owner receives the keys to close a real estate transaction. However, this timeframe can vary considerably depending on factors like location, market conditions, and the type of property.
In comparison to the ease and efficiency of buying and selling shares on the stock market, the process of buying or selling real estate is lengthy and intricate. It involves multiple parties and strict legal requirements. Consequently, investors face challenges in liquidating their assets quickly, efficiently, and cost-effectively, which further limits their ability to seize new investment opportunities.
Investing In Real Estate Requires Significant Amounts of Upfront Capital
Another challenge with traditional real estate investing is the significant amount of upfront capital required to purchase an investment property. For example, in the United States , to qualify for a mortgage for a one-unit investment property, most lenders require at least a 15% down payment with a 680-credit score.
To get an idea of what kind of cash we are really talking about, consider the average home value in the US, $327,514 . At this price, an investor would need to come up with a minimum of $49,127 for a down payment. In addition to the down payment cost, there are many other significant costs associated with purchasing a property. Consider the following, non-exhaustive list of some of the closing costs associated with buying a property.
Clearly, the average US investor is going to have a tough time coming up with all that cash for an investment property, while likely still paying the mortgage on the home they live in. This is no easy task, and the proof is reflected in the numbers. As mentioned before, just 3% of the global population have invested in real estate. However, real estate has nearly always been considered a relatively safe investment, and for good reason.
Unfortunately, the majority of the population, 97% to be precise, misses out on the benefits of real estate investment. This is primarily because they face insurmountable financial obstacles when it comes to purchasing property. However, there is a solution to this problem in the form of blockchain technology and tokenization. These innovative tools can help lower the initial costs associated with real estate investment by enabling fractional ownership. This means that investors can buy smaller portions or shares of real estate assets. By dividing these assets into smaller tokens, individuals can now gain access to this lucrative investment class without the need for significant upfront capital.
On the other side investors who have a substantial amount of capital can utilize tokenization/ fractionalization to explore various strategies, markets, and real estate sectors with minimal risk. This allows them to safely experiment and diversify their investments.