Real Estate Investment Reinvented

A New Way to Invest in U.S. Commercial Real Estate (CRE)
Long Term Growth Strategy


Two Real Estate Security Token Offerings (STOs)
Secured by U.S. Commercial Real Estate


1 – Equity STO for Growth
2 – Debt STO for Income


Benefits of a Security Token Offering (STO)

What is an STO or a DSO?

They are acronyms for “Security Token Offering” and “Digital Security Offering.”  An STO is a “security offering” that has been tokenized.  A DSO is a “security offering” that has been digitized.  They both mean exactly the same thing, which is a digital representation of a “security” as defined by the U.S. SEC (Securities and Exchange Commission). An STO is NOT a digital currency!  A digital currency is not backed by “real” assets.  A Real Estate STO is an issued security backed by “REAL” assets.


The Benefits of Digitizing a Security

The primary benefit of tokenizing traditional private [placement] securities is to improve investor liquidity.  While it may take a few more years before the liquidity is similar to that of the public markets, it is not a question of if, but when.  Another benefit of tokenization is to facilitate easy cross border transactions.  Even today it is difficult for global small investors to participate in the U.S. public markets and impossible to participate in the private markets.

Another benefit is the cyber-security and the transparency that is programmed into each and every issued STO share.  Your beneficial ownership of an issued “security” cannot be hacked, lost or stolen.


Equity Share Value always goes up!

Commercial Real Estate professionals are predicting that commercial real estate values will remain flat or lower for the foreseeable future.

–  However  –

REICG Equity Shares will increase in value in both a flat and decreasing price environment.  Because the growth of share value does not depend on the increasing valuation of any individual property.

REICG Equity Share value is based upon the Net Asset Value (NAV) of the entire portfolio of properties; and the portfolio of properties will INCREASE as we acquire additional properties every year!  See our Equity Business Model and video



Liquidity without Volatility

Traditionally, people make commercial real estate investments, both public and private, for passive fixed income.  In general class “A” real estate with credit tenants will provide a steady reliable cash flow stream over time.

Up until now, only the public markets could offer real estate investors liquidity, in the form of publicly traded  REITs.

–  However  –

Since publicly traded REITs must, “mark-to-market”, the share valuation will fluctuate daily with changes in interest rates, geo-political factors, high-speed trading and investor sentiment.  Resulting in volatile share prices, even though the underlying real estate values only change slowly over time.

REICG’s corporate structure is designed as an “Interval Fund” wrapped in a “Permanent Capital Vehicle” (PCV) which by definition means that equity share value is based upon the Net Asset Value (NAV) of the entire portfolio of properties; also by definition there will be a share redemption program to periodically buy back shares at the NAV value.  The publicly published NAV value and the certainty of the redemption program will provide price guidance and stability for secondary trading on the growing number of STO exchanges around the world.

Further, the fact that the corporate structure is also a Permanent Capital Vehicle means that REICG will always have money available to buy back shares, which increases the value of the remaining shares outstanding.



Need Income... Become our Lender

When people deposit money in the bank, the banks pay them little or no interest on their money. The bank will then take depositor’s money and lend it to other people as a mortgage to acquire real estate.  The banks pay you nothing and they earn 2.5% +/- for the privilege of lending out your money.

–  How about Crowd Lending for Income  –

REI Capital Lending (REICL) has devised a new way to “corporatize” and replace traditional Mortgage Debt for its U.S. Commercial Real Estate Fund.

With this Bond STO, REICL can deliver a 5.5% coupon rate with a pay rate of 4.00% interest and a total yield of 6.4% income to small balance investors from all around the globe.

This new way is based on the combination of a “Corporate Bond” and a structured “Real Estate Credit Facility”, recorded on the blockchain as a “Security Token Offering” (STO).

This Bond will NOT have a “Credit Rating” as is typical for bonds traded in the public markets. 

– However  –

Banks do not get “Credit Ratings” in order to lend for a mortgage.  They adhere to “Underwriting Standards” to determine the risk associated with each loan.

REICL’s bond will have the “underwriting standards” written into the bond covenants.  These bond covenants are more strict then typical bank underwriting standards.

REICL will have each and every acquisition transaction, audited by an independent auditor, within 3 or 4 months post acquisition, to verify that all covenants have been adhered to.  The results of each transaction audit will be made available to bond holders.

Attention Non-US Investors:  Our Bond STO was specifically designed to be able to make interest payments to investors out side the US without the normal 30% tax withholding requirements!!  Please see our Debt Business Model and video


Is this Fund a Blind Pool?

The short answer is: Yes.  By definition, a blind pool is when the investors do not know, prior to making the investment, exactly what properties they are investing in.  Knowing in advance is advised when investing in a single property fund, with a strategy of increasing the value of the property within a 3 to 5 year period.  So that you can judge for yourself, if the property and the “value-add” strategy is likely to succeed, and if the risk is worth the potential gain.

–  However –

This fund and it’s corporate structure was designed from the ground up, to mitigate risk at every level.  When you look at our “Acquisition Criteria” you will notice that we want to buy already successful properties.  In the real estate industry they are called “stabilized” properties.  These are the properties where the developers and their investors have taken all the risks, and have attracted and leased the property to all the best tenants.  They have won, and now they want to sell and take their profit.

From our perspective we only want to own already successful, stabilized, cash flowing real estate.  Because we can read all the leases and evaluate the credit worthiness of each tenant and their business, see the location with all the area demographics, before we buy. We can limit our risk with far more clarity than the previous owners had, when it was an empty lot.

Please see our “CRE Investment Strategy” page and the reference to “Gap” properties.  When a seller has a property for sale within the $5M to $25M price range.  The first thing the seller wants to know when he receives an offer to buy is: “Who is the Buyer and how do I know he has the money and ability to close?”   Sellers do not want to get locked into a purchase contract for 90 days and then have to start all over again, if the buyer cannot close.

It is not possible to raise equity for properties of that size, one property at a time, all within a 90 day window, negotiate hard with the seller for the best price and have the seller believe you can close.  We know this because that is exactly what we did, for smaller priced properties, over the last 10 years.  See our “Track Record” page and our “Sample Properties” page.

We have also learned over the years that single property funds are far more risky than multi property funds.   So…

– This Fund Must be a Blind Pool  –

We MUST have the equity in the bank and the debt secured, in order to acquire the best “Gap” properties at the best prices.

We have been finding, evaluating, analyzing, and acquiring this exact type of property for independent clients and for our REI Equity Partners single property funds, for over 10 years.


How would COVID-19 affect this Fund?


This fund and it’s corporate structure was designed from the ground up, to mitigate risk at every level.  Not that anyone could have anticipated the Black Swan event, that we are currently experiencing.

–  However –

Based upon our current experience, with 9 properties under management.  The REICG Fund would fair most favorably!

The current properties under management were all structured with the traditional business model.  Single property funds, structured to offer dividends and are leveraged with Bank Debt.

The COVID-19 (Corona virus) crisis has put the country in an unprecedented position.  Our primary goal is to help our retail tenants in their efforts to protect the health of their employees, customers and the US population in general.  We have now reached a tipping point with the mandated closure of schools, government offices and businesses, including many of our tenant’s stores as well as a drastic reduction of foot traffic in stores that remain open.

Tenants are contacting us requesting and in some cases demanding that we provide rent concessions, while they are being forced to temporarily shut down by the government.  Totally understandable..

From our perspective it is an easy decision.  In order to preserve the value of our real estate assets on behalf of our investors and lenders we need to be in a position to allow our tenants to stay in business, so that when we as a country come out the other side of this crisis, all of our tenants will be able to rejoin a once again thriving economy.

However, we currently cannot make that decision alone without first getting permission and concessions from the banks, to suspend the mortgage payments for the duration of the crisis or risk foreclosure. We are confident that the banks will cooperate, but it is not our decision..

Under the REICG business model, it would be our decision. Never a risk of foreclosure.  Valuations would not drop dramatically over night, because NAV value doesn’t change over night.

In the event we had to suspend interest payments to our Bond holders, the missed payments would automatically be added to the principle balance that was owed and the bond holders would then earn interest on the higher amount once the economy started up again.

Win, win, win…


When & Where?

– When –

We anticipate having the required Private Placement Memorandum (PPM) ready, along with all the “white Label” crowd funding technology in place some time in November 2020.

– Where –

Right Here!

There will be an “Invest Now” button at the top of this web page.  Once clicked, a window will open and take you through the entire investment process, step by step, in total compliance with SEC regulations.  Right through to transferring your funds and receiving your Security Tokens.

Please download our White Paper and subscribe to our NewsLetter or get on our no-obligation reservation list.  We will send you advance notice of our launch date. 


The Average Annual Portfolio Growth Rate = 9.21%


*CAGR, or compound annual growth rate, is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value ($40 M) to the ending investment value if you assume that the investment has been compounding over the time period.