“Our Mission is to provide the retail investor with unparalleled access to institutional quality investments backed by a simple & seamless digital investing experience enabling them to easily own, invest and manage high yield private real estate including Commercial Real Estate.” Shaurya Singh, Founder Restack
Various investment options are available to the retail investor to help grow their wealth, which include fixed deposits, stocks, mutual funds, bonds, traditional residential real estate etc. On account of greater savings in the last few years and driven by a need for greater diversification especially with the much sought correction in the stock markets, investors are increasingly looking outside of traditional investments in search of options that offer higher returns with lowered-risk. It’s imperative to have a thorough analysis and diligence when putting your capital to work.
Real estate has diverse options tackling the risk-return dynamics for such an investor. One such lucrative option in real estate is Commercial Real Estate (CRE) which is the only one in the basket of investments that offers high stable returns with along with high cash distributions. This has made it a highly sought-after asset class for decades for the large investor and having sizeable allocation in the investment portfolio of institutions, family offices and HNI’s. The retail investor on the other hand has been left out from investing in this lucrative asset class due to its large investment capital requirements, thereby making them invest in second homes – with lower returns (5-8% annualised returns or IRR) and lower yields (2%~). However, for the vast salaried population that resides in the urban/semi-urban areas are desirous of owning these Grade A high-value assets, the option of investing in CRE has been beyond their means. Fractional Platforms like Restack using technology are democratizing access to this highly lucrative asset class reducing the burden on a single owner of the property. A group of likeminded unconnected investors can own a property together and become fractional owners. They can now earn annualised returns (IRR) up to 16% with annual cash distributions (Yields) up to 10%, while asset management of property is taken care of by Restack.
Technology has transformed every sector, the way CRE is transacted and accessed by retail investor will also rapidly evolve with the introduction of new age PropTech platforms. An online platform like Restack is offering investments across real estate asset classes and key locations enabling a diverse pool of investors spread geographically to access fully vetted CRE assets and invest through a fully digital investment process. Each asset offered on the platform is professionally screened by a team that brings decades of experience in real estate investment management, legal and corporate finance and needs to clear our stringent underwriting parameters before they are available on the platform. We also use leading law firms for title diligence of the property. This helps reduce risk thereby ensuring stability of projected returns.
RESTACK strives to make property investment as simple, seamless and transparent as investing in stocks. Hence the entire investment process for the investor is paperless right from KYC compliances, accessing property diligence reports and execution of transaction documents.
The investor always stays in control on investment selection and amount, and through our data tie ups with CRE Matrix, a leading real estate research firm, we evaluate huge amounts of data on supply, occupancy and comparable lease transactions to understand market trends and identify attractive micro-markets and assets that will provide above market returns. Our investment dashboard provides these data points in the Investment details page. In short, we replace the traditional intuition-based investing by a more data backed approach, the kind used by large institutional investors for decades helping them generate superior returns due to information asymmetry.
On the post investment monitoring, the investor has access to his portfolio dashboard through any handheld device or laptop which provides real time property updates and tracking of investment returns and yields. Our asset management team on the ground takes care of all activities like lease management, managing maintenance and repairs, property tax payments, insurance and other SPV level compliances.
Restack also offers a proprietary secondary market that helps in resale of your investment ensuring liquidity creation through easy exits. Our technology generates matching bids to your offer basis the demand generated on our platform. During certain periods, we do not launch any new investment to facilitate secondary resales enabling higher liquidity towards exits.
The ability to make fractional investments across assets, geographies through a simple investment process while solving for illiquidity in real estate through our secondary market will enable the retail investor to truly diversify in real estate by constantly optimizing their portfolio basis changing macros, which was traditionally impossible for the retail investor.
For investment opportunities click here.
