Online real estate platform can help investors get their money back quickly
Searching for high-quality real estate to invest your money in can sometimes feel like landing your dream job in the middle of a recession – the barriers to entry are high and the chances are slim. But proptech startups like Parvis seek to modernize the archaic process of real estate investing.
“We take traditional real estate assets, tokenize them and put them on the blockchain,” says founder and CEO David Michaud, who has a background in corporate and financial law.
Parvis is a Vancouver-based digital marketplace for real estate investing that just raised $2.6 million in seed funding. She was able to accumulate the capital thanks to her partnership with IIROC licensed investment bank Gravitas Securities Inc.. The company is focused on expanding access to high-quality real estate by providing a way to liquefy investments, and it does this with the help of blockchain.
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“These investments were happening at the end of the year and you had people selling private transactions or real estate projects by giving out paper business cards and investment games,” says Michaud. “This was for high net worth, high net worth individuals only, not entry-level credentialed investors looking to write a check for $25,000 to $100,000.”
Newbie investors are looking for liquidity – to get their money back quickly – which the direct-to-investor platform enables. By placing approved institutional-grade assets on the blockchain, investors can trade their assets before the end of their term (which traditionally takes five to six years). This means that if you have invested a certain amount in a project, but your situation suddenly changes (maybe you want to buy a house or get a divorce), you will have the opportunity to get your money back.
Parvis is on its way to becoming a licensed exempt market broker as it bridges the gaps between investors and developers, making it easier for the average stakeholder to find, track and maximize investments. “In a way, we are democratizing access to these exciting projects in a growing asset class,” argues Michaud. “And while we’re doing that, we’re increasing transparency with our platform.”