Sean Hsieh envisioned a world where commercial real estate investing wasn't just reserved for those with the capital to buy properties. Geek Wire reported that the Flowroute firm founder has started a company--Concreit--whose goal it is to give investors the chance to put up investments whether they have millions or just a few hundred dollars in the bank.
Hsieh envisions a world where even those without the means to own a building--or even part of it--are able to share that vision with the millionaires and the conglomerates. Hsieh related that normal people couldn't even process the thought of being a part-owner of a property. The app will provide people with the means to own properties on a piecemeal basis.
Concreit will be built with certain aspects of blockchain technology, which will help the app 'tokenize' properties and then offer them to interested individual investors. The developers are hoping to debut Concreit on a mobile-first basis, with elements are normally seen in gaming making it easy for 'millennial' and entry-level investors to understand how to invest.
Real estate investment has been the main go-to of rich individuals simply because of the many financial benefits it affords. According to CNBC, real assets have the capacity to provide a steady, fixed income from which people can receive financial dividends. Real estate investment trusts are good examples of fixed income which investors can use to further create investments for their 'portfolio.'
Chris Schiffer, executive VP with AEPG Wealth Strategies, said that real estate is in a boom when an economy is doing well. The REIT is also supported by a strong economy through appreciation, as well as higher rent payments and people rushing to buy units either for investments or occupancy.
Real estate investment could also be direct ownership of a rented-out property. Rent is another form of a dividend, which individual investors can readily receive and use for personal matters. Rental properties have also been the go-to financial vehicle of retirees simply because they can use the profits for their life after retirement.
Concreit hopes to provide all these and more to their initial clientele. The app will look into providing access to REITs as well, where real estate can be tradable securities. Fundrise is one such platform with a structure for that already. Hsieh hopes that the app, through the participation of non-accredited investors, will create more disruption for the real estate investment industry.
