Disruption of Commercial Real Estate with Blockchain Technology

RedSwan CRE Marketplace
2 min readApr 27, 2022

--

During my 18+ years as an executive in commercial real estate investment banking, I noticed many friction points that were clearly wasteful and inefficient in our transactional process. Today, we are witnessing blockchain technology specifically augmenting the capital markets ecosystem. Friction points, like not having equal access to quality, affordability or liquidity were accepted norms. Until now, it was unimaginable that these limitations could be eliminated. The best real estate has exclusively been held for the wealthy investors.

Why do LP investors have to lock up their capital for 3 to 5+ year periods before getting it returned? Why are LPs stuck with only one interim buyer if they desire to liquidate early? One could say that these controls are put in to limit the options for LP investors.

Blockchain technology, through tokenization of real estate equity shares, has reset the scale and unlocked many options for smarter, better and faster capitalization and liquidity. This entire new product of digital capital is just in time for the $40t+ transfer of wealth to millennials over the next ten years. Cryptocurrency is growing in popularity around the globe and in many cases, performing better than fiat currency as a hedge for inflation.

Owning assets long-term and generating positive perpetual cash flow will become the new way of real estate investment. For small LP investors, you will now have access to high quality assets and investment terms the same as larger Family Offices and Institutions with investment requirements below $5000. Global investors will have an easier time participating in US projects via their mobile phones.

Since 2018 when the SEC officially legalized blockchain technology for issuance of digital security tokens, RedSwan CRE and other leading platforms have been bringing $billions of commercial assets on-chain. Exchanges like NASDAQ, T-Zero, Securitize and others are quickly developing exchange technologies to accommodate digital asset and security-token trading. I think it is safe to say, this momentum is only going in one direction and will eventually be the norm in capital markets.

I look forward to discovering and implementing meaningful fintech solutions in commercial real estate. We are committed to deploying products or services which will improve efficiency, customer service, yield and investment liquidity.

.

--

--

RedSwan CRE Marketplace

RedSwan CRE provides solutions to make investing in high quality, commercial real estate (CRE) properties more affordable &liquid through digital CRE tokens.