Google Inc. (NASDAQ:GOOG), Google Inc. (NASDAQ:GOOGL) – How To Invest In Real Estate For As Little As $5

Global markets are volatile, in part due to changing market structure and fundamental drivers like the COVID-19 coronavirus.

Usually, risk-free investments like cash are the first choice in uncertain times, but with recent advances in technology and regulation, alternative investments have seen a boon.

In parallel with this move toward alternative assets, Ark7, a tool for buying stocks of hard assets like real estate, launched an investment platform.

As part of the development, Ark7 co-founder and CEO Andy Zhao spoke to Benzinga.

Why: Zhao said mainstream investments – stocks and bonds – are volatile and offer little certainty about future returns.

At the same time, young American adult homeowners are falling as the barriers to entry include high upfront costs and liquidity.

“Housing, which is an important part of everyday life, can offer steady returns with cash flows and appreciation,” said Zhao in a discussion about real estate that offers peace of mind.

“Existing opportunities to invest in real estate, however, have their own problems.”

After talking to colleagues, the founder, who previously worked for innovative companies such as Alphabet Inc– owned (NASDAQ: GoogL) (NASDAQ: Goog), Microsoft Corporation– owned (NASDAQ: MSFT) LinkedIn, Twitter Inc (NYSE: TWTR) and Uber Technologies Inc (NYSE: UBER) was inspired to break down traditional barriers to diversified real estate investing.

Above: Ark7 was founded in 2018 and is a Regulation A + issuer, which enables all investors, no matter how big or small, to diversify their assets through transparent and personalized real estate portfolios.

For just $ 5, members can get fractional exposure to rental income in the form of dividends, as well as the underlying real estate.

How it works: Investors are shown professionally audited properties originally owned by Ark7; You can see prices, cash flow, and estimates of the appreciation return.

After deciding how many real estate shares should be bought, Ark7 takes care of all real estate management, accounting and taxes in the backend.

The company’s online portal can be used to confirm ownership, accept dividends, monitor returns, and make informed decisions about adding or withdrawing investments.

“If you want to get out, sell your stock at whatever price you think is appropriate,” said Zhao. “You can even download your tax documents online.”

Graphics: The marketplace of Ark7.

Growth: Ark7 uses the proceeds from its property listings to purchase new properties.

After the acquisition, the company combines, among other things, the purchase price, costs and cash reserves for maintenance to derive the market capitalization of a property. This is the number used in issuing shares and determining the price for investors.

“If investors want to switch to other properties or get out, they can list their shares with a sell order,” explains the founder. “If I want to buy, it means a transaction.”

Benzinga asked about liquidity and the ease with which one can get in and out of investments.

“Ultimately, investors bear the market risk,” Zhao replied. “When real estate values ​​fall, it affects stock prices.”

When no other investor is willing to take on shares, Ark7 can step in.

Visions: By onboarding more users and accelerating growth, the company aims to further streamline its registration process, increase transparency, and provide opportunities to learn more about investing and purchasing real estate in major cities such as Denver, Seattle, Austin and Phoenix.

“We’ll be shooting for 10 cities by next year, maybe 30 in the next four years,” said Zhao, closing the offer for additional properties in a mobile app that is due to come onto the market in August of this year. “We’re going to launch an iOS app and support retirement plans within a few months so investors can use their IRA funds to invest in Ark7.”

© 2021 Benzinga does not offer investment advice. All rights reserved.