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. In my 18-year executive career creating and selling Multi-Family investment properties for Colliers International and Cushman & Wakefield, most of my active clients were for deals $15m and above. They were very high net worth investors and big companies who capitalized projects with $5–40m equity and usually had 4–5 key investors. They did not allow small partners with less than $500k to participate. For many reasons, these big players did not have bandwidth or opportunities to serve small investors. As an advisor, I also could not help smaller investors, some of whom were friends who wanted to put just $20K-$100K to work in CRE.
We have decided to break down the barriers and make all RedSwan CRE opportunities affordable by lowering the price of commercial real estate investment offerings. Previously our offerings carried investment minimums that varied from $3K to $40K, depending on the size of the project. Already these minimums were extremely attractive to the market. For the price of a nice vacation, one could own a piece of a luxury high-rise apartment in New York City. However, today we are excited to share that we have lowered our minimum allocation entry across the board to just $1,000. This means for any investment we offer, you can participate with 1,000 shares and be a qualified investment partner.
RedSwan CRE sells only to Accredited Investors in the US under Regulation D and anyone outside of the US under Regulation S. This new investment threshold opens the door to easy diversity as well as a low-risk way for people to “test drive” tokenized real estate equity. While $1,000 is likely no problem for an Accredited Investor in the US, we feel it is still important to create a painless, low-risk opportunity for investors in the USA and around the world to participate in commercial real estate investment.
2021 is delivering a rise of digital assets and cryptocurrency users. Individual investors want autonomy and rolling up their sleeves to get involved in a digitally native way at low cost. Just look at the recent surge in usage of free stock and crypto trading apps. Today, investors have more control of their funds and education is important. But experience is really the best teacher. Learn by doing! Making investments in real estate accessible and affordable helps to provide investors with the freedom to explore, learn and grow. We understand that digital investment shares are not common to most, just like Bitcoin was also a foreign concept several years ago. Providing a platform which is inclusive and transparent will help significantly in pulling down the mental barriers and allow smaller investors to participate in opportunities previously available only to big groups and institutions who had knowledge, connections and resource advantages. Bringing affordability to investors around the world, especially those paying attractive dividends in USD, should be available to a global audience.
As I have discussed in prior pieces, blockchain creates a new asset class called “digital assets” which in basic terms are security tokens 100% backed by a fixed asset like gold, art or real estate. The terminology is new, however real estate asset ownership is not in commercial real estate investment. The buildings offered on RedSwan’s marketplace are real assets you can see, visit, touch and research. In many ways digital investments remove considerable risk because you know exactly what you are buying. This is different from intangible cryptocurrency and other token offerings where the real value is hard to understand or can change quickly overnight. Blockchain also removes the risk of ownership and transferability because all security tokens are recorded on chain ledger and permanent until both parties consent to change.
In closing, RedSwan CRE wants to avoid discouraging average investors from being able to participate in higher quality projects directly due to excessive cost. Having access to something of high quality, even if only a small fractional amount, is inclusive. If you could invest just like the world’s largest banks, private equity firms, and pension funds — who have long had access to the same type of Class A & B properties we offer on RedSwan — with as little as $1,000 to see what results you experience, that is a priceless education that would last a lifetime. It is time to learn and grow!
Commercial real estate investment with crypto or fiat has never been easier.