REIFY by NYCE app lets you invest in real estate for just $100
- Real estate crowdfunding firm NYCE Companies just released an app for investors.
- The residential development company sells shares for just $ 100.
- CEO Phillip Michael’s goal is to help create 100,000 Color Millionaires by 2030.
- You can find more articles on Insider’s business page.
The private investors who drove Gamestop’s frenzy through the stock market were busy throughout the pandemic as app-based companies and commission-free brokers “democratize” investing for everyone.
While retail investors mainly operate in public markets, real estate crowdfunding firms and other alternative asset trading companies have also seen a boost.
Take NYCE Companies, a holding company for real estate projects such as apartment buildings that are developed by the operators and then sold in small shares to investors. Last year, retail investor interest was in becoming the fastest real estate company to sell $ 1 million of shares through the Securities and Exchange Commission’s crowdfunding offer.
On Wednesday, NYCE further expanded access to retail investors by launching its own REIFY by NYCE app, which allows users to purchase $ 100 stock of a company’s real estate project. The platform also allows investors to buy a stake in an instrument – similar to an exchange-traded fund – that contains a portion of the real estate company’s holdings.
36-year-old Phillip Michael and his soccer star nephew, 29-year-old FC Barcelona striker Martin Braithwaite, founded NYCE Companies in 2016 after the Danish-born couple began investing in real estate. The company – which Yahoo! Finance, called Robinhood of Real Estate, was officially launched in 2020 with the aim of raising funds from smaller investors seeking access to commercial investments, but without the huge sums of money normally required to get started.
Michael has grown into a social media influencer, with 123,000 followers on Instagram who tune in to his posts with investment advice, financial literacy explanations, and success stories of how people get rich.
He told Insider that one of NYCE’s goals is to paint 100,000 millionaires by 2030 by selling stakes in the company’s real estate projects, which include buildings in New York, Philadelphia and San Antonio, Texas.
How NYCE’s crowdfunding model works
What makes NYCE different from
Like Robinhood or real estate fractional share companies like Crowdstreet, they first buy and develop real estate with their own funds and then transfer ownership of the property – in USD 100 increments – to investors.
Michael said that this approach – as opposed to using private equity or venture capital to fund the projects – means their interests are fully aligned with those of their investors.
“Our projects are checked by us with our own wallets,” Michaels told Insider.
The company’s next offering will be its second Philadelphia project, a smart-tech co-living building near Temple University. The first Philly project, fully funded by the crowdfunding platform Republic, includes 17 residential units for students and technology entrepreneurs.
NYCE’s Color Mission Millionaires are part of a plan to bring returns on commercial real estate investments to people who have historically been excluded from this path of wealth creation. Much of the racial wealth gap is due to racial redlining and home ownership laws across the country.
Braithwaite and Michaels, both blacks, started their businesses to empower underrepresented communities to achieve financial success through real estate investments.
“We’re always looking for ways to give back,” said Braithwaite, NYCE’s chief vision officer, in a press release. “This is one of those ways we can do that.”
Michael contrasted his approach with that of some financial giants who pledged money to advance racial justice after the Black Lives Matters protests in 2020. In October, for example, JPMorgan Chase announced it would spend $ 30 billion on promoting racial justice in the United States.
If NYCE is able to maintain high levels of retail investor engagement, Michael hopes to initiate partnerships with some of these large financial institutions that would use their funds to raise wealth in underserved communities.
“With every app download we can say,” You can’t miss this segment of the population. Don’t just use them for overdraft fees and your credit card business, “Michaels told Insider.” Let’s mobilize and activate this very willing part of the population together. “