While there is hype as a potential flagship for blockchain, tokenized properties have failed to deliver on their original promise in many ways.
However, the fintech startup is Reinno has just launched a token commercial real estate investment platform in the US, which includes real estate valued at $ 237 million at launch.
Globally accredited investors can now take part in various offers, including both individual assets and diversified real estate portfolios.
All properties are income generating and include medical facilities, apartment blocks, and industrial buildings.
The new platform allows investors to enter the commercial real estate market with a minimum investment of $ 5,000, with no fees for creating or maintaining an account or purchasing tokens.
Nowadays, All prospective investors must be accredited or qualified persons who comply with the regulations of the United States Securities and Exchange Commission.
However, this could change in the future as it ultimately comes down to the choice of tokenization customer, as Reinno CEO Viktor Viktorov explains:
“The majority [de los clientes] prefer […] Offers that do not allow the sale of securities to non-accredited investors but offer other advantages, e.g. B. no limit on the amount to be procured. “
However, other categories of SEC regulation allow investments from non-accredited investors, and these can also be accommodated within the platform.
Due to regulations, real estate investment tokens cannot be traded on secondary markets until 12 months after the offer has been completed. This means that investor money is essentially frozen and illiquid during this period.
However, Reinno has developed a model that allows you to approve token-backed loans instantly. The mortgage lending value (LTV) depends on the property, but is usually between 60 and 85%.
This is said to offer higher liquidity compared to other property investment methods.
Reinno no doubt hopes that his new platform will help bring about at least some of the excitement surrounding tokenized real estate.