Focusing on the tenants of blockchain and simplifying the real estate investing process, Jointer developed a scalable tokenization platform that provides investors with the ability to realize instant investment, better returns and less risk. Counter to current high minimums, costly due diligence, and an antiquated process, Jointer brings scalability to tokenization.
A few weeks ago, Ineveniam Capital Partners announced its plan to tokenize about $260 million in four private real estate transactions including a WeWork building in Miami, Florida. The company tokenizing the building is opening the sale only to prospective buyers who hold at least $10 million in cryptocurrency. This is similar to many companies that allow only accredited investors to participate. There is also a minimum purchase of $500,000.
A $500,000 floor for tokenholders limits participation to only the wealthy. Blockchain is for the unbanked, the believers, the innovators, not just the wealthy. Blockchain should open tokenized asset markets to all, not further consolidate power and money.
An attorney familiar with the project even went so far as to say, “…I want sophisticated investors who understand how to do due diligence into projects like this to be the ones starting out the investment process, “Sophisticated in this case, appears to translate into investors who have large reserves of cash and equity at hand.
Think about this, whenever a security token is purchased, due diligence is required. This means that with each trade, investors must perform deep due diligence, which carries a high cost and amount of time, something regular investors are not qualified to complete.
For tokenization to truly transform the real estate industry, it must be structured to reach as closely to a trustless tokenization and lending process as possible. Focusing on the tenants of blockchain and simplifying the real estate investing process, Jointer developed a scalable tokenization platform that provides investors with the ability to realize instant investment, better returns and less risk.
Unlike current tokenization platforms, Jointer provides free, end-to-end public tokenization for owners of lucrative commercial real estate assets. Focused on scalability, an unlimited number of property owners can tokenize their properties at the same time. Once the reserve has enough capital, properties can be instantly tokenized once analysis is complete. That means property owners could get cash immediately for their assets.
On the other side, Jointer grows the reserve and allows an unlimited number of investors can lend unlimited funds by purchasing Jointer’s JNTR debt tokens. These debt tokens are backed by cross collateral generating returns that are tied to an index. Tying returns to indexes reduces risks for token holders.
This solution seems to finally understand how blockchain and asset tokenization work together, which is good since the media has gotten it wrong, going after big headlines rather than solutions. In October of 2018, the commercial real estate community buzzed with the tokenization of two luxury condo buildings in Manhattan for $30 million. https://www.forbes.com/sites/rachelwolfson/2018/10/03/a-first-for-manhattan-30m-real-estate-property-tokenized-with-blockchain/#4306d27e4895 This transaction, the media said, was a
sure sign that tokenization was about to explode onto the commercial real estate scene with the potential to bypass the traditional transaction model.
Less than three months later, the building went up on the auction block. David Amirian of the Amirian Group, which owned the properties said the group decided that a bulk sale was the best exit. https://therealdeal.com/2018/12/19/a-pair-of-east-village-condo-buildings-are-going-up-for-auction/
“The prospect of instant liquidity, both for my investors now and for my next projects going forward, justified going the auction route,” Amirian said in a statement.
We must focus on sustainable and scalable solutions for asset tokenization to catch on to main street. Current solutions are missing the market as shown above. Owning property has traditionally provided a way out of poverty, so increased access and participation is welcomed. Jointer seems to provide the solution blockchain is looking for.