Tokenized real estate investment platforms are springing up everywhere. With as little as $50 in your bank account, you can invest in residential or commercial properties and earn rental income, and/or make a profit from property price appreciation while only just owning fractional shares in the property in form of tokens. Tokens typically do not confer direct ownership of the property but signify membership interest in a limited liability company that owns the property.
There are 3 classes of investors these platform carters to;
- The hands-on investors who want to choose the property they want to invest in, manage their investment and participate in making decisions on how the property they invest in should be managed.
- The investors who want to invest put their funds into a portfolio of professionally managed real estate investments, they may or may not pick the specific properties they want to invest in, but they aren’t interested in participating in the management of the properties they invest in.
- The investors that are good at spotting properties with upside potential and want to buy into them.
Now let’s put the platforms under the classes of investors
For the investors who want to invest in a portfolio of professionally managed real estate investments not interested in decision making.
1. Honeybricks;
Honeybricks helps real estate companies tokenize their projects, and raise capital from investors around the world. They are focused on Investing in multifamily assets (buildings with more than 1 rentable space like apartment complexes) in leading U.S cities with consistent cash flow. Honeybricks Sources high-quality real estate and creates an LLC to hold the real estate. Ownership is fractionalized into security tokens and sold to investors.
All properties are managed by professional managers in partnership with honey bricks, rental income is distributed monthly to investors, Investment minimum is typically around $100, though the minimum may differ based on the project requirement.
The platform is open to international investors (non-US investors) and is only available to accredited investors in the US. (People who meet specific income/ net worth threshold).
2. Martelturnkey;
The self-acclaimed world’s first tokenized real estate fund, Is in business to make cash-flowing rental property investment affordable. Martelturnkey investors invest in a tokenized portfolio of rental properties in strong economic areas around the U.S. The company buys rental properties across America, rents them out, manages them, takes the cash flow, and pays investors a part of the income generated every month.
They handle all the decision-making, including which asset to invest in and they decide when to sell the assets and when it is financially beneficial to do so. They help investors spread their risk across hundreds of properties.
Although the Minimum investment allowed is just $50, it is only available to accredited investors.
3. MarketSpace capital;
Marketspace capital is focused on multifamily properties; (buildings with more than 1 rentable space like apartment complexes) They mostly invest in ground-up (new developmental projects) and value add investments (projects where there is an opportunity to increase asset values), Marketspace capital Owns a portfolio of professionally managed commercial real estate properties.
As an investor you are not just investing in their portfolio, you are allowed to select the property you want to invest in. When you invest, you own a share in a limited liability company (LLC) that owns the specific property you are investing in. Investors are entitled to cash flow from rent distributed quarterly as well as proceeds if the property gets sold. The average investment hold period is (3-7 years).
The investment minimum is set on a per-project basis and is typically as high as $50,000 and it is only open to accredited investors (people who meet the income/ net worth threshold).
4. Redswan;
Redswan is a marketplace that gives small investors the opportunity to invest in institutional quality real estate. It helps existing owners of properties to Tokenize the equity they want to sell out to investors. Redswan is Focused on Multifamily, office, and hospitality property. The minimum investment is set on a per-project basis but usually falls between $1000-$10000.
It is open to U.S investors who meet the accredited investor’s requirement and to non-U. S investors.
Redswan has a one-year holding period. Income is disbursed quarterly or annually. Asides from the regular marketplace where investors pick the property they want to invest in - which then is managed by the property owners, Redswan also operates funds that help investors that do not want to analyze individual properties in the marketplace. With the minimum investment set at $1000, investors get automatic diversification and professional management of their invested funds.
The investors that are good at spotting properties with upside potential and want to buy into them.
5. Vesta equity;
Vesta is a real estate marketplace that connects Property owners that want to tokenize the underlying value of their property to investors looking to buy into a property with upside potential. A homeowner can sell equity in their home to an investor through a share agreement the investor only partakes in the upside appreciation of the home, so when the house is sold in the future the funds get disposed to the investor. It is only available to accredited investors.
The hands-on investors who want to choose the property they want to invest in, manage their investment and participate in decision-making.
6. Lofty
Lofty is a marketplace that allows homeowners to sell their houses to multiple people instead of selling to one person. lofty isn’t asking for too much with just $50 investors from anywhere around the world can buy a fractional share in rental property in form of tokens. Ownership of the token means membership interest in the LLC that owns the property therefore you have legal ownership in the property, and token owners can vote on key property decisions like repairs through the platform’s governance system.
Decisions are made based on the outcome of votes and communicated to property managers.
Token holders are entitled to receive rental income and earn returns from Asset price appreciation if the property gets sold. lofty distributes rental income to investors daily.
there are no lockup periods, investors can sell their tokens at any time and it is open to investors within and outside the United States.
7. RealT;
RealT is creating an opportunity for investors around the globe to buy into US real estate market. realT is focused mainly on residential family properties. Properties on the realT platform are owned by a limited liability company, and shares of these companies are distributed across a number of tokens. Token owners can collect rental income and vote on property decisions.
The Property is managed by a management company on behalf of investors, rent is distributed weekly to investors.
realT is open to foreign investors except for restricted countries and only available to investors in the U.S who meet the accredited investor requirement a single token on the platform cost between $50 - $150 per token.
