Blockchain technology at the service of the investor, for a safer, more profitable and flexible investment
Possibility of transcribing the title to the property into an NFT, where the smart contract provides irrefutable proof of ownership and rent payments
Fractional ownership allows you to invest up to the amount of your choice, regardless of the total price of the property
Fractional ownership enables you to diversify real estate across multiple geographic areas, reducing risk and improving stability
Complete history of past transactions, improved security and data integrity
Trade your property's NFTs on marketplaces such as Opensea
Quick transaction on the blockchain, without any external party involved, minimizing risk while reducing transaction costs
The flexibility, security and simplicity of tokens for the benefit of investors.
Owned by a Dedicated LLC, every property is owned by a different LLC
Ownership, compliance, rent payments are automated in the Smart Contract. Each NFT has the same value
The investor receives his NFTs on his wallet, the number of which corresponds to the amount initially invested
NFT holders receive the income earned on the property, whether the holder purchased the NFT on the secondary market or was an original purchaser
Own Your Properties
Become a direct owner of our high-conviction pre-vetted commercial properties, providing regular and sustainable cash flows. Detailed financial data and key information are available for each property.
Buy Fractional Ownership
Fractional Ownership brings flexibility and accessibility allowing a low minimum investment, diversifying one’s portfolio while bypassing the high entry cost of classic real estate. Each asset is partitioned into small fractions to which are associated effective ownership of the asset and the associated cash flows.
Trade your Tokenized Asset
Each portion of ownership can be exchanged freely, at any time, transforming the expensive and time-consuming transactions of traditional real estate into a liquid investment. They are each associated with an NFT, transparently and immutably containing the asset ownership and the previous transactions.
A simple registration form and proof of accredited investor status and you are ready to invest.
Access all the necessary data on pre-vetted properties to invest with confidence.
Invest according to your risk profile, budget and will. You will get a fraction of ownership equivalent to your investment.
Title
|
|||
Direct Ownership | REITs | Projek Tokenized Assets | |
Real Estate Ownership | Direct Acquisition | No Ownership | Fractional Ownership |
Diversification | ✗ | ✓ | ✓ |
Low Initial Investment | ✗ | ✓ | ✓ |
Low Transaction Costs | ✗ | ✓ | ✓ |
Time to Liquidity | Months | Days | Immediate |
Decision-making power in choosing investments | ✓ | ✗ | ✓ |
Capital Efficiency | Low | Medium | High |
Both US and non-US investors are allowed to purchase tokens.
If you are from a sanctioned country, you will not be able to purchase tokens due to restrictions by the Office of Foreign Assets Control (OFAC). Sanctioned countries include Balkans, Belarus, Burma, Côte D’Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Russia, Sudan, Syria, and Zimbabwe.
In the U.S, the definition of an accredited investor is put forth by SEC in Rule 501 of Regulation D.2
An individual is considered an “Accredited Investor” if s/he meets any of the following four criteria:
An entity is considered an accredited investor if it is a private business development company or an organization with assets exceeding $5 million. Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor. However, an organization cannot be formed with the sole purpose of purchasing specific securities.
Commercial real estate (CRE) is property used exclusively for business-related purposes or to provide a work space rather than a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from a single storefront to a huge shopping center.
Commercial real estate comes in a variety of forms. It can be anything from an office building to a residential duplex, or even a restaurant or warehouse. Individuals, companies, and corporate interests can make money from commercial real estate by leasing it out, or holding it and reselling it.
Commercial real estate includes several categories, such as retailers of all kinds: office space, hotels and resorts, strip malls, restaurants, and healthcare facilities.
Commercial real estate is typically categorized into four classes, depending on function:
Individual categories may also be further classified. There are, for instance, a number of different types of retail real estate:
Similarly, office space has several subtypes. It is often characterized as class A, class B, or class C:
There are two ways you can demonstrate accreditation :
Regardless of which approach you choose to become verified, you will need to submit documentation to prove that you can be considered an accredited investor.
For individuals, the documents depend on whether you are getting verified under the net worth test, one of the two income tests or the knowledgeable investor test. For net worth verification, you would need to submit any combination of bank statements, brokerage statements, other statements of securities holdings, and appraisal reports to assess the value of your assets. For income-based verification, evidence can be supported by tax returns, W-2, K-1, 1099 or other government documents. For knowledgeable investor test, a copy of the unexpired Series 7, Series 65 or Series 82 securities license suffices.
For business entities and trusts, one can show the $5 million minimum assets by furnishing a bank statement, brokerage statement and/or appraisal reports of real estate or other tangible assets held by the entity. If a business entity does not meet the minimum assets requirement, then each owner of the business entity must be individually verified as an accredited investor, in which case the documentation requirements mentioned above for individuals applies.
Similarly, if a trust does not meet the minimum assets threshold, then the trust documents should be submitted to determine if the trust qualifies based on the type of trustee or if the trust is revocable. If the trust wishes to achieve accreditation under the condition that the trust is revocable, then all trust grantor(s) must be accredited individually, in which case the documentation requirements mentioned above for individuals applies.
Commercial real estate adds diversification benefits to stock and bons portfolios. Historically US commercial real estate returns have offered similar returns to stocks but with less volatility. More importantly, they exhibit low correlation to the US stock and bond markets and have proven to be an effective inflation hedge.
Minimizing tenant turnover is the key to success for almost every rental property. Tenants who sign NNN leases tend to be in it for the long haul. It’s not uncommon for tenants to sign for 10- or 25-year (or even far longer) leases, which means investors can rest assured that carefully selected tenants will continuously occupy their space. Long-term occupancy also equates to spending less on marketing, interviewing, and onboarding new tenants. NNN leases help owners reduce the risks of vacant commercial properties, especially if they can sign a lease with terms that will likely exceed their investment period of ownership.
NNN leases are often preferred by tenants who plan to set up shop to run their businesses. Since there is essentially little worry about dealing with vacancies, property owners can focus on earning profits and other investment opportunities instead of recruiting tenants to fill their spaces. For those worried about inflation eating into profits, it’s typically a non-issue because building modest annual rent increases (3% of the original rent is an accepted norm) into an NNN agreement is a commonly accepted practice.
Even the least expensive NNN opportunities can promise stable cash flow that provides uninterrupted cash flow and financial freedom when pursuing other investments. Even though the monthly base pay of triple net leases is lower, owners can keep more of it because they don’t have to cover property costs.
In a triple net lease, the three “nets” relate to property taxes, building insurance, and common area maintenance costs. This typically also includes capital expenses needed to make the property continuously useable. One of the prime benefits of using NNNs is the ability to enjoy freedom, or at least minimal involvement, from many of the responsibilities that come with day-to-day property management and ownership.
Instead, the tenant is responsible for paying expenses and maintaining the property (for multi-tenant occupied commercial spaces, all tenants share these responsibilities). The tenant will pay a lower monthly base with triple-net leases. Further, they’re incentivized to keep the property in good shape since they’re financially responsible for most maintenance tasks. With this type of hands-off ownership, investors often feel free to make investments extending to other geographical areas since they aren’t required to be onsite to manage building problems.
Unlike other commercial real estate investments, properties that come with triple net leases are transferable between owners, meaning owners can sell their properties without worries relating to their tenants or structuring sales around the end of leases. It’s common for CREs to change hands multiple times with NNN leases in place.
This is a huge benefit for investors who might need to create an exit strategy or simply come across a more attractive and lucrative investment opportunity but need to transfer capital quickly. Investors purchasing the property will assume the same benefits as a commercial property, which is essentially a turn-key operation since reliable tenants are there. Sellers often find that NNN leases in place help them to sweeten the deal, making it easier to flip a property.
Speaking of flipping properties, buildings with NNN leases enable investors to add conservative, low-risk investments to their portfolios, which means they enjoy the ability to create more equity. Once enough equity is built, they can strategically sell their property when market conditions set them up to earn a nice profit. Many will take that money and use it in a new investment opportunity – others may take the money for personal reasons, such as retirement.
While CRE owners can build modest inflation increases into their NNN lease terms, one unpredictable element is how inflation or other market factors impact other expenses. With the NNN structure, owners relieve themselves from worrying about dealing with a sudden uptick in expenses relating to materials, labor, or other items associated with building improvements or insurance premiums. Thanks to the lower monthly rental base, tenants can budget for these expenses and even take action to keep them lower**.**
This can include other factors, such as costs, including snow removal or ice mitigation, which can be costly in a year that sees numerous winter storms. Businesses can’t ignore these and other essential tasks since they need to protect themselves from liability if someone gets hurt. In other types of CRE leases, it can be costly for landlords to pay for these types of upkeep.
This site is operated by Projek, which is not a registered broker-dealer or investment advisor. Projek does not provide investment advice, endorsement or recommendations with respect to any properties listed on this site. Nothing on this website should be construed as an offer to sell, solicitation of an offer to buy or a recommendation in respect of a security. You are solely responsible for determining whether any investment, investment strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult with licensed legal professionals and investment advisors for any legal, tax, insurance or investment advice. Projek does not guarantee any investment performance, outcome or return of capital for any investment opportunity posted on this site. By accessing this site and any pages thereof, you agree to be bound by the Terms of Service and Privacy Policy.
All investments involve risk and may result in partial or total loss. By accessing this site, investors understand and acknowledge 1) that investing in real estate, like investing in other fields, is risky and unpredictable; 2) that the real estate industry has its ups and downs; 3) that the real property you invest in might not result in a positive cash flow or perform as you expected; and 4) that the value of any real property you invest in may decline at any time and the future property value is unpredictable. Before making an investment decision, prospective investors are advised to review all available information and consult with their tax and legal advisors. Projek does not provide investment advice or recommendations regarding any offering posted on this website.
Any investment-related information contained herein has been secured from sources that Projek believes to be reliable, but we make no representations or warranties as to the accuracy or completeness of such information and accept no liability therefore. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Projek of the linked or reproduced content.