On Monday it was announced that RealtyWealth.com have launched the very first commercial real estate crowdfunding platform focused entirely on U.S STNL (Single Tenant Net Lease) investments.
The platform has been invented with the intention of giving investors the opportunity to invest in corporate approved, institutional standard, long-term lease properties from some of the world’s most illustrious and recognised credit rated tenants such as McDonalds, Walmart, Walgreens and Starbucks. Accredited investors both in the United States and countries such as the United Kingdom, India, China, South Africa and the U.S’ neighbour Canada have been specifically targeted for the use of this new platform.
Furthermore, RealtyWealth is the first portal that offers a flow of realty investments to investors across the globe that are looking for the assurances, stability and yields that US real estate assets provide. Over recent years, Chinese investors in particular have been active in the US commercial property market, resulting in a major jump in investments between 2012 and 2013. Real analytics have predicted that investments can reach as much as $10 billion when then statistics for 2014 are revealed.
The crowdfunding market has seen significant development over the past six months, further justifying the introduction of RealtyWealth.com, who are looking to reap the rewards of greater interest from owners, investors, developers and intermediaries. RealtyWealth.com will have been buoyed by the success of competitors such as Real Estate Tech Startups who have raised over $700 million since 2012. Fellow peer sites Fundraise and Realty Mogul have also seen success come their way, which both boasting Series A valuations of over $100 million.
Key marketing relationships with international consumer sites such as Juwai.com, who are the most established investment portal for US & UK properties in China, will allow RealtyWealth to take advantage of the foreign investor wave, and form further partnership in South Africa, North America, South America and India.
The co-founder and president of Strategic Business development at RealtyWealth, Sam Vogel, speaking on the role of the company stated, “RealtyWealth.com operates as an aggregator of local and foreign investors typically seeking stable US-based Real Estate Investments.”
Speaking about the benefits of the portal, Vogel claimed, “These STNL products offer long-term, corporate-backed, passive income with an inflation and currency hedge to our investors.”
STNL as well as NNN (Triple Net Lease) investments provide security and investments that consist of long term leases which are guaranteed and approved by a corporate tenant. The responsibilities held by a corporate tenant are monumental, and these include responsibilities over insurance, maintenance and all incidentals including taxes. There are a number of leases however that have rental increases over time as they attempt to keep up-to-date with inflating prices, allowing investors to write off any depreciation of the property has against tax.
Family Offices, Hedge Funds, REITS and UHNW for years and years have been taking advantage of these investments, but there are still a low number of investors who know the main merits of real estate investments, with less than 10% of the 8.7 million accredited investors knowing the advantages that are to be gained from it.
“Compare investing in Starbucks stock at 1.6% dividend with the market risk involved versus acquiring a corporate backed Starbucks lease and achieving returns of 6 to 7% unlevered,” said RealtyWealth’s co-founder and chief executive, Bryan Smith, speaking on NNN investments.
This unique and innovative platform will allow investors from all corners of the globe to go online and make investments, follow portfolios, review properties, review states and analyse earnings and tax information.
