Real estate is one of the largest asset classes in the world. We are all surrounded and connected with real estate on a daily basis. However, each one of us interacts with it differently. The fascinating thing about real estate is that it comes in many different shapes and purposes, thus the connection and engagement with real estate can vary from using it as a home, office, museum or as a source of passive investment income.
Real estate is also the most popular and understandable investment choice. However, property investments require a lot of time and effort – you have to do market research & due diligence on a specific property, figure out a long term plan etc. Since the property is bought for investment purposes, it needs to be rented, managed etc.. Once all this is done, you need to put up a significant amount of capital for a single investment. In the end, after all the hassle of research, due diligence, management etc. you find yourself betting a significant portion of your money on “one horse”. Even though real estate is considered one of the safest asset classes to invest in, mainly because of its intrinsic value and physical presence, there is a considerable risk of something happening to that one apartment you bought. In addition, not only does real estate require significant capital, its also illiquid – on average it takes 6 months to sell an apartment, what if you need the money urgently? This sets clear barriers & difficulties for most of us when it comes to real estate investing.
Should it be that hard and complex? Is there a way to make it more available? Can we somehow mitigate some of the risks in real estate investments?
These were the questions that triggered the founding of BitOfProperty. We’re building a platform that allows people to invest affordable amounts into “Bits” of property, lowering barriers to entry when starting but also allowing anyone to diversify their immediate risks of owning an individual property. We leverage on crowd investing to offer people smaller investment amounts into individual properties, while providing research & analysis, as well as management services along the holding period. Lastly, we’re building a state-of-the-art marketplace using blockchain technology, which allows investors to liquidate their Bits earlier, should they have the desire.
Real estate crowdinvesting industry is gaining a lot of traction in sophisticated markets like U.S. and UK, and is one of the fastest growing segments in crowdfunding. We warmly welcome you to join BitOfProperty and ride the wave of proptech (property technology) together with us.