How Leverage Can Help You Diversify Your Cross-border Real Estate Portfolio

RealtyReturns.io
4 min readAug 21, 2018

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Foreign interest in U.S. real estate has always been very high, but completed transactions are actually very low. The U.S. real estate market is the most sought-after investment market in the world especially when the stock market is going through volatility, but the reality is that most investors never dedicate the necessary time and energy due to the high barriers to entry.

Real estate today is an antiquated process that requires individuals to jump through hoop after hoop dealing with banks, brokers, lawyers, governments, and sellers to name a few. Aside from all the middlemen trying to get a piece of the pie you also have to deal with the strict banking requirements, high interest rates and 20–30% cash down (not including rates for international purchases). Not many people have cash reserves to invest hundreds of thousands of dollars in commercial real estate, not to mention the seven-figure price tag on commercial real estate.

When the stock market is unpredictable and volatile you see many investors hedging for unexpected losses by securing their capital in real estate. There are many investors that want to hedge with both domestic and cross-border real estate investments but the latter is too difficult for most to get access too. In the past it was very difficult to invest in cross-border real estate transactions but ever since online platforms like RealtyReturns popped up it’s been much easier.

Fractional real estate investing

RealtyReturns is a cross-border marketplace that is helping people around the globe access real estate and accumulate wealth with cryptocurrency. Real estate has always been a bountiful investment with rich returns through income generation and capital appreciation, but the problem is most people can’t access this source of wealth, until now.

With RealtyReturns people can invest in fractional US real estate for as little as 2 Ether, or roughly the equivalent of $1,000 USD. Since the minimum investment amount is very low, it allows investors to leverage other people’s money to get access to better investment opportunities than they could previously. Investors from around the globe that couldn’t invest in multi-family and commercial investments now can through RealtyReturns and can benefit from capital appreciation and income producing properties. Real estate also provides relief from the volatility of the crypto markets, allowing investors to place their crypto in secure, income generating real estate instead of letting go through the steep ups and downs in the market.

RealtyReturns has different classes of real estate for people to invest including residential, multi-family, and commercial. Within commercial there is different classes of property along with triple net lease commercial opportunities which are the Crème de la Crème of commercial real estate investing. Because these investments are completed through crowdfunding investors aren’t responsible for coming up with 100% of the money and they can invest in whatever amount they are comfortable with allowing them to spread their money out between many different properties.

Investors should invest in multiple cross-border properties across the globe creating a safe hedge from economic woes along with getting a better overall return according to; “The rate of Return on Everything, 1870–2015” by Oscar Jordan, Katharina Knoll, Dmitry Kushinov, Moritz Schularick and Alan Taylor.

“The ideal investor would like to hold an internationally diversified portfolio of real estate holdings, even more so than equities.”

RealtyReturns is democratizing real estate investing by offering cross-border real estate transactions through their online portal. Regular people can invest in real estate through their ERC-20 compliant security tokens. The integration of the blockchain into the traditional real estate investing model provides asset-back tokens and liquidity to investors all across the globe. Each token represents legal ownership in fractional real estate with access to income generating properties and capital appreciation.

Democratizing global access to investment grade commercial real estate using the blockchain. Visit RealtyReturns.io and join our Telegram group https://t.me/realtyreturnsglobal

Trevor Whiting

VP, Investor Relations

RealtyReturns

Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.

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