USA-based real estate crowd funding site Brelion has unveiled a plan to allow digital currency users the option to invest in property using funds they’ve stockpiled on Bitcoin and claims they'll make up to a 24 per cent return.
The website says it will start its Bitcoin venture with a pilot property, making it the only company offering a Bitcoin digital currency real estate investment option.
The property - a suburban, four bedroom, 1.5 bath residence - was purchased for approximately 30.83 XBT (US$17,829) but requires renovation which is expected to cost a further 65.49 XBT (US$37,824).
According to Brelion, the project manager expects the property to appraise for approximately 120.21 XBT ($69, 609) at the project's close and be refinanced to return the equity invested in the home.
Brelion founder Vadim Kleyner says his company is about breaking down barriers to real estate investment by taking it out of the hands of big funds, giant corporations and banks and making it accessible.
"By utilizing the crowdfunding concept made popular by sites like Kickstarter and Indiegogo, Brelion effectively provides individual accredited investors access to alternative investment options and the ability to hand-select projects, while enabling small and mid-sized renovation companies to access capital without being beholden to traditional financing," Kleyner says.
An early adopter of Bitcoin currency himself, Kleyner believes opening Brelion to investments in the form of Bitcoin further supports his mission to make investing more accessible through the use of technology.
"This currency has major potential and there are not yet enough options for people that use it to be able to invest it and gain returns rather than having their money sit in a virtual wallet," he says.
"So I decided to open our projects to Bitcoin investment, starting with our pilot property.”
No stranger to alternative investing, real estate or IT, Kleyner blends more than 20 years of experience with including a decade in real estate.
As CTO of Costupdate, he spearheaded the deployment of a “just in time” B2C logistics platform that synthesized the most efficient delivery paths for one million products from a multitude of sources around the world.
In 2015, he sold his $100 million asset under management (AUM) real estate company to a partner of Keller Williams Realty, one of the largest gobal realty companies.
Highly regarded as an alternative investment strategist, Kleyner has been featured in print and video for his professional merits.
Brelion investor Alex Gertsburg says he did so because he "knows and trust its founders and because he strongly believe in its platform and business model.
"I'm also drawn to the disruptive innovation that is instilled in it.
"The fact that the company puts its own money alongside that of its investors – i.e. puts its money where its mouth is – is totally consistent with the way its leaders think and act.
"I’m glad I invested. It’s been smooth sailing so far and I happily deposit my Brelion interest check every month. Looking forward to continuing this outstanding relationship with these outstanding people.”
Brelion selects projects from small to mid-sized renovation companies that have passed through a stringent vetting process.
Investors can browse pre-vetted real estate opportunities and invest in projects by creating an account, undergoing accreditation and pledging an investment of their choice.
Minimum investment can start as low as $1,000.