Real Estate Investing and the Transparency Myth

If you took one hundred pennies and transferred them hand-to-hand through a line of one hundred people how many pennies would end up at the end of the line? I’m guessing less than 100.  Why? Because stuff happens.  Some will drop, some pocketed. Someone else will take out the “shiny penny” to admire. You know, regular people stuff. The same thing happens in real estate investing.

Transparent: an object fine or sheer enough to be seen through

Everyone loves to throw the word “transparency” around as if you, the investor, will get everything you need to make informed decisions. The intention of an investor report — so says every person responsible for investor reporting —  is to deliver the honest numbers to the owners and investors. Too often that ‘transparency” is buried in 5pt type in the back of a prospectus, or 250 offering circular. How are you supposed to make an informed decision that you can profit from and feel good about?

When a tenant pays rent that rental income must pass through many hands before the investor gets their return on investment.  There’s maintenance and management, the mortgage lender, insurance broker, City Inspectors, rubbish collectors and candle-stick makers (maybe the last one is outdated but you get my point).  How do we get to transparency? By reducing the overall number of hands that touch the money.

HOW DOES THIS RELATE TO REAL ESTATE?

There’s nothing wrong with investing into a national or international real estate fund based in New York with offices in Boston, San Francisco and Singapore.  Just know that someone must pay for all that overhead and letterhead. Who do you suppose that is? It’s the investors in the fund.  For the most part, the people who really win in the commercial real estate game are the owners. Why? Because they take control of the buildings returns and overall preservation of value.

Unless you have a spare several hundred thousand dollars for a down payment,  time to manage, monitor and deal with everyday challenges of optimization a building for returns it’s probably not realistic for you to own the whole building. So how can you get the same return the “big investors” get without paying middlemen fees?

BUY A BIT

BuildingBITs has developed a platform for investing in real estate that offers the investor the control to make decisions independent of others without layers upon layers of people with their hands on the money before it gets to the investor.

BuildingBITs creates the most direct line of investment with transparency between the investor and their investment. 

The BuildingBITs platform provides the ability for individuals to buy shares in a BuildingBITs’ commercial real estate company which owns specific buildings. You can choose the exact building you want your returns to come from. You are free from the hassles and liability of building management but still benefit from the appreciation and dividends of a property. You also get full access to the property’s financials, condition, and overall stability – just like an owner!

By investing in an individual property’s value and return, you are provided with full due diligence and the ability to invest AND support something you believe in.

BuildingBITs’ offerings are regulated by the SEC and we are committed to providing transparency to our investment opportunities allowing you to make an informed and highly personalized real estate buying decision.

 


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