20:00 - 20:30, 29th Sep 2021

It's time to make real estate liquid - and here's how

Yael Tamar
DIBS Capital, Formerly SolidBlock
Host
Session Description
Real estate, a very traditional industry, has undergone a variety of rapid innovation cycles. Construction, AR/VR, safety, materials, you name it. Yet we still use the same methodology to finance most of the $280T property industry. Although crowdfunding is becoming very popular and is growing at a rapid 33% per year pace, it is still expected to reach approximately $870 billion, or otherwise under $1T. At the same time, other industries prosper because they have robust ingrained financial systems and mechanisms that increase accessibility of financing and also liquidity. Publicly traded REITs currently stand at about $1.1T in total, or less than 1% of the total property market. For comparison, in the private equity market, the total market capitalization of public companies in the US alone is about $47 trillion while the global private equity market is only about $7.3 trillion. It's incredible how the public markets are so much larger for private equity than real estate. With most individual property investors owning the home they live in, tied to mortgage payments stretching for 10 to 30 years, they normally have limited resources to invest in other assets. With the understanding that going public may be an option best suited for private equity models rather than most real estate, it's time to create the tools for a liquid property market and change the way families create a safety net and encourage value creation based on the real estate sector

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Welcome to September's RE:Connect