The size of the Real Estate accounts for 22% of the total investable asset classes in the United States, Bonds (47%) and Equities (31%) accounting for the rest. In 2015, the total value of this asset class stood at $18.7 Trillion. The sheer size of the real estate market makes it hard to ignore in any investment portfolio. It is typically associate with, Diversify the portfolio by combining it with less correlated assets Achieve absolute returns competitive with other asset classes Hedge against the inflation Constitute a portfolio that reflects the global investment opportunity set Deliver robust cash flows While these considerations remain the same, investors can obtain exposure to the real estate in several different ways. They can happen in a public or a private market, and by taking an equity or debt position in the capital stack. Public markets are those where small ownership of shares in assets is traded in public exchanges. In private markets, on the other hand, assets are traded between individual buyers and sellers, often through the aid of brokers. Debt positions entitle the holders a right to the future cash flows from the assets, typically paid out by the borrowers on loans they have taken. In contrast, the Equity positions represent a residual or subordinated claim on these cash flows. Equity positions take more risks and therefore, commands more returns from the assets. RealBlocks platform leverages the blockchain technology to democratize the private real estate markets. It provides increased security, liquidity, transparency and higher loan efficiency over the traditional real estate investing models.
Become Part of The Movement For The Future of Real Estate