Security Token Offerings for Crypto Holders to Invest in Quality Real Estate
RedSwan CRE’s business objective focuses on liquidity as a key function of our platform, benefiting building owners and investors from all corners of the globe. We see an enormous necessity to bring affordability to investors around the world. Quality real estate is too expensive and typically available only for large financial institutions and investment groups.
The question facing the new age of commercial real estate is “Blockchain or no blockchain?” Eventually, we will all have to choose. We are at the stage of transformation where people are at a crossroads of choosing tokenization for their property to unlock liquidity. By using blockchain, the crowdfunding impact allows investors to reduce the initial investment cost, letting them diversify their capital into multiple projects instead of one without the historical requirement of holding them for 3 to 10 years before exiting. Based on U.S. Securities and Exchange Commission (SEC) regulations of Reg D investors, only accredited investors can participate in RedSwan CRE’s security token offerings (STOs).
We have decided to break down the barriers and make all RedSwan CRE opportunities affordable. Our minimum allocation entry across the board is just $1,000. For any investment we offer, you can participate with 1,000 shares and be a qualified investment partner.
Historically, smaller investors weren’t permitted or invited to participate in major $20M+ projects because the price of entry was too high, making it a challenge to access higher-quality investments. By investing with RedSwan CRE’s platform, customers can invest alongside major institutional companies with similar or exact search terms. With the first tranche now available, investors will have freedom of liquidity.
We’ve always been laser-focused on one sector of the market — institutional-quality properties in commercial real estate. I made sure that the type of assets I sold at Cushman & Wakefield were institutional-quality assets that big companies wanted to buy. However, small investors were not able to participate in these offerings. I wanted to turn the table on that to make everyone able to afford high-quality assets. That’s how I think we differentiate ourselves — we go after the attractive properties that only big companies can afford to buy. Small investors like me can’t write a $20M check to buy into that property. But by taking that same property and making it affordable, where a person can invest $10K and have an equal share, it’s now an opportunity for people to get into.
Holding cryptocurrencies can be seen as viable long-term storage of value and payment opportunities — but these investments hold inherent risks when you consider how often the price of coins increases and decreases. Investing in real estate properties with cryptocurrency provides an efficient and significant opportunity for crypto holders to reduce the volatility of their assets. Technology only furthers the opportunity to build wealth; blockchain in commercial real estate, through tokenization and creation of digital securities, enhances an investment portfolio and removes a considerable amount of volatility risk. The use of Bitcoin for property investment allows the investor to diversify their holdings and get the advantages of liquidity, transparency, and stability. An option for crypto holders who are seeking long-term appreciation instead of selling their crypto assets and paying capital gains tax could be to hedge by borrowing against their existing crypto and using the proceeds to purchase income-producing commercial real estate.
