E59: Why You Should Invest in Fractional Real Estate with Sundance Brennan

Real Estate Hackers

English - July 13, 2022 11:00 - 28 minutes - 64.6 MB - ★★★★★ - 54 ratings
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Previous Episode: E58: How Inspections Can Increase Property Value with Josh Jensen

Next Episode: E60: Why You Should Acquire Properties in Pottstown and Reading, Pennsylvania with Sheldon Zimmerman

If you’re like most people, you probably think of real estate as a more stable investment than stocks. But what if there was a way to invest in cities the same way you invest in stocks?

In this episode of Real Estate Hackers, we discuss Nada’s Cityfunds and how they allow you to buy portions of properties in major cities — just like you would shares of a company. Cities are like stocks: sometimes they’re on the rise, and other times they’re not. With Cityfunds, you can invest in cities that can minimize your risks and maximize your profits.

Here are some power takeaways from today’s conversation:

Look for areas on an upward trend.
Hedge your bets.
Decide what to do with the property.
Choose Cityfunds for fewer fees and more benefits.
Explore the opportunities of blockchain.

Episode Highlights:

[03:04] What Nada Does

Nada recently branched out to Cityfunds, a fractional home-ownership model where clients can sell a portion of their house. They look for areas on the upward trend and hedge their bets.

[07:55] Liquidity on Cityfunds

If you took out the Cityfund, you could still pay it off and own 100% again. Investors that bought into the fund should remember their investment is spread out. They could be bought out, trade for another city, or cash it out and redeem on a secondary marketplace.

[11:27] Prototypical Homeowner and Investor

Owners and investors should be comfortable with new ideas and technology. They are looking for first-time homeowners between 28 and 38 who want to make home improvements. Since the fees are less, the equity percentage given up is less than home equity loans.

Investors tend to be slightly younger in demographics. Mostly, they get investors who think real estate is a safer bet but can’t buy a whole property. They must be able to put in at least $20,000.

[16:45] Creating a National Cityfund

Nada is working on a DAO which will allow qualified investors to pool their funds and create a national Cityfund. They are leaning towards a particular coin called Algorithm.

[23:47] What the Future Holds

Sundance thinks title companies will face a threat from cryptocurrency. They will have to change their service model and become departments rather than stand-alone businesses.

Notable quotes from the Episode:

[19:02] “[Blockchain is] a transparent system. So you can see exactly where your funds were deployed, what your rate of return is instantaneously because it’s all verified.”

[22:01] “It’s the same function; we’re just trying to find something that’s a little more efficient, and we’re going where our audience is.”

[23:50] “I think that title companies are really going to face a threat from the blockchain, from cryptocurrency.”

Resources Mentioned: