How Real Estate Fractional Ownership Platforms Work
Real estate fractional ownership (“REFO”) makes investing in real estate more accessible by lowering the minimum investment amount committed by each investor. Regardless of your net worth, you can now benefit from real estate’s potential for generating consistent cash flow and long-term capital appreciation. The REFO industry includes real estate crowdfunding, peer to peer lending, and security token offering. The REFO platform identifies the real estate investment, based on their expertise and preference, then conduct the necessary due diligence. Subsequently, the platform sets a timeline to raise the required fund amount and makes the project information available to investors. The investors are given a period If the investors want to invest, they then pool their money together (with less than HKD 200,000) and acquire a piece of real estate which is managed by a professional asset and property management team. That’s how a REFO platform works!
Even though this new real estate investing method allows more people to have real estate ownership, it is time-consuming and difficult to evaluate great quantities of real estate investments. An investor needs to be aware of many aspects (I.e. market trends and outlooks, legal structure and tax regulations, insights into the opportunities and investment due diligence process, etc.). Frankly, a lot of people desire to partake in real estate investing, but they do not know where to start! Denzity is here to help you.
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