Digital Assets: REINNO Offers Investors $237M In Tokenized Commercial Real Estate

September 11, 2020 | Digital Assets, FinTech, News, Real Estate
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REINNO is a marketplace for tokenized real estate.

REINNO intends to disrupt commercial real estate investing by breaking down the financial barriers which limit entry to the small guy. REINNO’s platform offers tokenization of real estate, loans against tokenized real estate, and a marketplace for property owners to list the token offerings. It announced Thursday the launch of its marketplace for tokenized commercial real estate with five offerings worth over $ 237 million. (The Tokenizer)

REINNO marketplace offerings

The properties on offer, all-income-producing, include medical facilities, apartment buildings, warehouses, and more. American and international investors may participate in the offer.

Furthermore, they can buy fractions of these properties by paying in US dollars or cryptocurrencies.

“We believe we’re right on the cutting edge” of tokenization, said Barry Moniês, co-founder of REINNO, in March. “This is an alternative to traditional real estate financing, which is very restrictive and expensive to get into. And it’s been approved by the SEC (Securities and Exchange Commission).”

However, for the five properties currently on offer (one pictured below), only accredited or qualified individuals can apply.

“Ultimately, the availability of each offering depends on the SEC exemption chosen by our tokenization clients. Most of them prefer having Reg D and Reg S offerings that do not allow selling securities to unaccredited investors but provide other benefits, such as no limit on the amount to be raised. We will be happy to list Reg A+ or Reg CF offerings if our clients decide to file for such exemptions,” clarified Viktor Viktorov, co-founder and CEO of REINNO.

Liquidity and costs

There is a regulatory lock-in period of 12 months after the close of an offering. Hence, real estate tokens cannot be traded on secondary markets until the said period is over.

To get around this difficulty, and to provide liquidity during the lock-in period, REINNO has developed a proprietary risk assessment model. The system enables it to lend money against the tokens – almost instantly.

This is a huge improvement over the traditional commercial real estate borrowing transaction which goes through banks, lawyers, and title companies.

Real estate that has been tokenized is powered by the blockchain. Hence, it excludes the costs incurred on such intermediary parties.

Kristiyan Lozanov, COO at REINNO, said the company’s platform was a game-changer.

“There are many ways to invest in real estate, from REITs to crowdfunding. However, none of them can deliver this level of liquidity, especially during the lockup period,” he added.

Related Story:  Vertalo to Tokenize Real Estate in Mexico and Canada

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