Hi everyone,
I’m an experienced commercial real estate investor who has been in the space on and off since 2018, completing multiple successful deals. I got started in commercial real estate by buying a mobile home park in Alabama. Over the years, I’ve seen how traditional methods of raising capital for real estate projects can be cumbersome—high fees, slow transactions, and challenges for international and American investors alike.
I’m working on a concept for a real estate crowdfunding platform that would allow individuals to invest in U.S. properties using cryptocurrency (e.g., stablecoins like USDC as well as BTC). The idea is to simplify the investment process, lower transaction costs, and make opportunities more accessible to a global audience.
This would start as a lean platform with a focus on small, curated real estate projects, where investors could pool funds and benefit from potential profits, while I manage the properties. Here’s the kicker: the entire platform would use crypto for payments instead of traditional methods like ACH or wire transfers.
I’d love your thoughts on this:
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Would you be interested in investing in real estate through a platform like this? Why or why not?
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What would be your biggest concerns about using crypto for real estate investments?
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What features would you expect or find most valuable in a platform like this?
My goal is to build something small and manageable initially, and then scale up with more functionality and compliance features over time. I’d greatly appreciate your feedback, suggestions, or even your skepticism—it all helps refine the idea.
Looking forward to hearing your thoughts!
P.S. Just to be clear, mobile home parks would absolutely be a property type we invest in.
From a property investor perspective these always seem like profit traps for the mgmt co and or the platform operator and their “vendors.”
For the platform operator and mgmt co, you better have folks masterfully hedge the crypto daily and a bevy of excellent federal and state tax lawyers and SEC lawyers who work in multiple countries doing the set up, enforcement and regularly required reporting…
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Thank you for your feedback, it’s really insightful. You’re absolutely right that managing crypto risks and staying on top of regulations are critical. I’m currently working with experienced tax and SEC attorneys to ensure everything is above board and transparent for investors.
I’d love to hear your thoughts on what would make a platform like this more appealing—whether that’s clarity on fees, compliance, or something else. Thanks again!
Hey Dominic,
This is a really innovative concept! Using crypto for real estate investments could definitely simplify the process. My main concern would be the volatility of crypto, but if you focus on stablecoins, that could mitigate risk. I’d love to see features like clear property management updates, a transparent fee structure, and a community forum for investors to discuss projects.
Excited to see how it develops!
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@goonsramu
Hi Nancy,
Thanks for the feedback! We are definitely looking at using stablecoins primarily, but I’m also considering Bitcoin (for certain functions) as well since it’s ubiquitous.
I really like the ideas about transparent fees structure as well as the community forum for investors. As far as property management updates, that’s a huge reason that I’m doing this. I’ve worked on other private equity deals and one of my biggest gripes, as well as many others, is that they tend to lack simple updates and regular communications with investors. This will be something we commit to very early on in the investment process.
Thanks again for the advice and I will be sure and keep you updated on our progress.
I’d be interested in raising money this way and like how crowdfunding opens up opportunities to mainstream investors
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From a property investor perspective these always seem like profit traps for the mgmt co and or the platform operator and their “vendors.”
- It would have to demonstrate a long run of roi to the investors, that is greater than say Berkshire Hathaway, otherwise, why bother?,
- Some secure method for investor to use secured leverage to amplify the roi. This is unlikely as you’re probably using leverage to make the underlieing asset purchases
- Sec registration and listing on an exchange (this alone is enough weight to kill the roi on most investments)
@jsrm2022
Thanks for sharing your thoughts again! I appreciate your critical perspective, it’s always helpful to consider potential challenges. That said, your concerns seem more focused on general criticisms of the model rather than specifics of this concept.
For example, the platform I’m envisioning prioritizes transparency and compliance, including partnerships with legal and financial experts to ensure everything operates securely and ethically. Additionally, the ROI would be supported by carefully curated projects aimed at delivering strong returns, not unlike other successful investment platforms.
If you see specific ways this concept could be adjusted or made more robust, I’d love to hear them! Constructive feedback is invaluable as I refine the idea.