Jointer Improves The Liquidity of Commercial Real Estate using Tokenization and SAFE Smart Contracts

Corlynne O’Sullivan
Jointer
Published in
3 min readMay 16, 2019

Right now, thousands of extremely clever people backed by billions of dollars of often expert investment are working very hard to change the way real estate is traded, used, and operated. Currently, we are seeing these models struggle to scale as daily demand and regulations dry up promoted liquidity. The latest initiatives in blockchain powered real estate market, aka Proptech 3.0, are dragging real estate into the disruptive era, Jointer is applying tokenization to the entire market, rather than one property at a time. Jointer accomplishes this by focusing on connecting Sponsors and Investors in a more fluid fashion on the blockchain. Jointer’s process tokenizes the entire Commercial Real Estate industry, by developing a scalable tokenization platform, allowing sponsors to instantly syndicate deals with one check, investors to access instant investment and generate better returns while reducing risk factors associated with the property market.

Traditional real estate tokenization calls for the Investors to perform due diligence on all the information the security issuers provides. This diligence is costly, time-consuming, and has to take place before each trade to ensure there is no fraud. Jointer solves this problem by allowing investors instant investment in diversified real estate by receiving returns based on an index of all commercial REITs around the global, rather than a specific property and instantly providing issuers with the capital they need.

Jointer has come up with a solution by enabling the first SAFE note based tokenization for commercial property tokenization. The technology will improve accessibility and scalability to the lucrative commercial real estate market. To date, the access to commercial real estate investment is only accessible for the wealthy, Jointer takes the ideals of cryptocurrency and tokenization, to make investments in these assets accessible to everyone.

Jointer provides investors with diversification and improved returns with reduced risk. They have done this by improving on the traditional tokenization model, developing an end-to-end public tokenization platform. This provides sponsors with one check investments in their equity rather than the time consuming and costly syndication process. Next comes scalability, there is an unlimited number of property owners and sponsors who are able to tokenize their properties simultaneously. If reserve funds are available, tokenization takes place instantly. This design also allows for an unlimited number of investors to instantly diversify and lend an unlimited funds by acquiring security tokens which are supported by cross-collateral generating an interest rate secured to national commercial real estate market performance.

Jointers token offers access to all and equal protection from the risks associated with investing in real estate. The Jointer SAFE Notesecurity token (JNTRx) is secured to the GlobalALL REITs Index, this Index performance is based on fully-disclosed public information, offering full transparency and leverage on the indices returns. Jointer reduces exposure to specific property risks, while equity and income streams serve as cross collateral. As for the property income streams — these are controlled by a smart contract. Jointer can be seen as a market maker with a buyback program which benefits investors by improving shareholder value and increasing share prices.

Real estate tokens are not yet mainstream, but in the near future, we can expect everything that can be tokenized will be tokenized. Therefore, Jointer is set up to scale to meet the demands of the tokenized future. Tokenization of real estate on the blockchain offers plenty of real-world opportunities and benefits. This is because real estate properties are the strongest investment assets in the world, however, potential investors have been turned away by the high barriers to entry and limited liquidity. Jointer addresses these issues by enabling investors to easily diversify their investments with reduced risks, as well as providing sponsors with the investment they need instantly. Real Estate Tokenization allows everyday people to build a successful real estate empire, even in a high net worth arena like commercial real estate, without all the inefficiencies.

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Corlynne O’Sullivan
Jointer
Writer for

Specialising in design, implementation and evaluation of blockchain-enabled systems.