Acquire Real Estate Exchange Gives Investors to Resale Equity Interests
- Commercial Real Estate
- CREtech Blog
While many real estate platforms that have emerged over the past few months have remained focused on providing financing for projects, relatively few have focused on the ability to liquidate projects. A new crowdfunding site launched by Acquire Real Estate is now changing that. Via the new exchange, real estate investors will be provided with a tool that will make it possible to place their equity interests up for sale. As a result, investors will be able to benefit from potential liquidity of their assets.
The launch of the new exchange has addressed one of the most significant concerns of most real estate investor, that of how to handle liquidity. Acquire Real Estate is just one of the many crowd investing sites to take advantage of improved technology in the last few years. Thanks to the release of such crowdfunding sites, accredited investors are able to obtain greater access to institutional-quality real estate investments.
Built on the use of proprietary technology, the new exchange launched by Acquire makes it possible for the exchange process to take place at a much more efficient and faster pace. Additionally, participating investors will also be able to avoid many of the inconveniences commonly associated with transferring assets.
One of the reasons that Acquire has been able to develop such a groundbreaking platform is the company’s commitment to developing relationships with leading real estate sponsors. Additionally, a panel of experts is responsible for conducting due diligence for all deals conducted on the exchange.
Why There Is a Need for a Liquidity Tool
Currently, privately placed investments are prohibited under federal law from being purchased with the goal of distribution. This typically means that investments must be held for a minimum of one year. In certain circumstances, or following the one-year period, most investors have found in the past that there simply was not a market that catered to liquidity. Such liquidity is now made available through registered users of the Acquire Exchange.
Of course, liquidity is not guaranteed on the exchange and is entirely dependent upon an investment selling successfully through the auction. Investors may choose to place all or part of an investment up for sale on the exchange. This occurs through a live, blind auction. Investors are able to specify the terms of the sale, as well as the start and end times for the auction. Acquire handles everything else by allowing registered users to bid based on the proposed terms. Due to the way the exchange is designed, not only can investors offer assets for sale, but they are also able to seek liquidity, as well. As a result, both buyers and sellers are able to enjoy a seamless experience of the entire transfer process.
No financial compensation is provided to Acquire. The exchange does not make any recommendations or advice regarding any investments offered for sale on the exchange, as all transactions are between registered users and sellers. Instead, Acquire merely functions to facilitate the process.