Earn Rental income without owning Property

How you make money on rental streams

Step 01 – Register and create your RealNOI profile

Simply visit the investor’s page and complete the registration form so we can create your portal account and get you access.

Step 02 – Find a Property or Unit that right for you

Once approved, you can log in and see the properties, available rental units, and return on investment analysis, to you can decide what is right for your portfolio.

Step 03 – Purchase the future Rent Streams and earn

Purchase the RealNOI tokens for your selection and start receiving the rental income every month for the time period you selected.

There hasn’t been innovation in Multi Family financing for 40 years, since securitization started. RealNOI is changing that. We are innovators who have built a solution that offer financing for multifamily properties that equates, in the current market, to a 130% LTV for property owners and creates a stable investment >5% for international investors. All that without changing the underlying principles or risk profiles of the underlying assets or investments. 

Background

Throughout the annals of commerce, one enduring principle has stood the test of time: true value emerges when a willing buyer intersects with a willing seller. This foundational concept not only defines the essence of trade but also serves as the bedrock of regulatory frameworks and industry practices, guiding each transaction with its fundamental wisdom.

To safeguard and authenticate this notion of “willingness,” the financial community has adopted a diverse array of practices, evolving from practical needs and situational challenges:

Establishing Legal Ownership: The concept of property ownership demanded more than mere verbal agreements; it necessitated official records recognized by civil authorities. These records, such as the Title system in the US, provide a definitive register of ownership, essential for establishing legal claims and securing the rights of property holders and users alike.

Third-Party Verification: With the emergence of notaries, the need for objective third-party verification became paramount. Notaries play a crucial role in ensuring that the individuals listed as owners agree to the terms of a deal, thus preventing fraudulent transactions and safeguarding the integrity of property transfers.

Dispute Resolution and Innovation: Courts, relying on official state systems comprising deed records and notaries, have been instrumental in adjudicating property disputes. Moreover, these systems have catalyzed innovation, leading to the development of sophisticated frameworks that accurately track various property rights and restrictions, including mining claims, right of ways, easements, deed restrictions, and public use.

Despite the robustness of these systems, the impetus for change arises from the realities of a rapidly shrinking world. The globalization of trade and commerce, exemplified by Disney’s observation of a “small world,” underscores the need for a more inclusive approach to property investment. While we enjoy culinary fusion and conduct business across borders, the ability to invest in property worldwide remains constrained by ownership restrictions favoring domestic citizens.

RealNOI Solution

Removing these barriers presents a compelling opportunity for economic growth, as it opens the doors to a more diverse and expansive investor base. Rather than adhering strictly to traditional notions of ownership, there is merit in shifting the focus to the concept of “use.” In this paradigm, value is not solely derived from ownership but is instead intrinsically linked to the productive utilization of assets.

Enter RealNOI, a groundbreaking solution that recalibrates the investment landscape by divorcing property valuation from the fluctuations of Federal Reserve rates. By anchoring analyses to a stable 5% return, RealNOI provides investors with a reliable framework for assessing property value based on tangible income and expenses rather than external market volatilities.

Moreover, RealNOI’s emphasis on cash flows over ownership deeds offers unparalleled portability and accessibility to investors worldwide. Through innovative mechanisms such as RentStreams, investors can securely participate in the real estate market, receiving regular income based on historical data and forward-looking projections.

Basic Comparison

In comparing the financial implications of an 80% Loan-to-Value (LTV) loan against a 5% Net Present Value (NPV) of a similar cash flow stream, several key considerations emerge.

Leverage Effect: An 80% LTV loan entails borrowing 80% of the property’s value, thereby leveraging the investor’s capital. This amplifies potential returns if the property appreciates but also magnifies losses if the property’s value declines. Conversely, the 5% NPV represents the discounted value of future cash flows from the property, providing a more conservative estimate of its worth.

Risk Exposure: With an 80% LTV loan, the investor assumes a higher level of risk due to increased debt exposure. Market fluctuations or unexpected expenses could lead to difficulties in servicing the loan, potentially resulting in foreclosure or financial distress. In contrast, the 5% NPV approach focuses on the intrinsic value of the property’s income stream, mitigating the risk associated with debt leverage.

Cost of Capital: Securing an 80% LTV loan typically involves interest payments, origination fees, and other financing costs, which contribute to the overall cost of capital. In contrast, the 5% NPV calculation incorporates a discount rate representing the investor’s required rate of return, reflecting the opportunity cost of investing capital elsewhere.

Cash Flow Stability: The stability and predictability of cash flows from the property play a crucial role in both scenarios. An 80% LTV loan necessitates consistent rental income to cover debt service obligations and operating expenses. Conversely, the 5% NPV analysis accounts for potential fluctuations in cash flows over time, discounting future income to its present value based on the perceived risk and return profile of the investment.

Flexibility and Liquidity: While an 80% LTV loan provides immediate access to capital for property acquisition or improvement, it also imposes constraints on the investor’s financial flexibility and liquidity. In contrast, the 5% NPV approach offers a more flexible investment structure, allowing investors to adjust their portfolio allocation based on changing market conditions or investment objectives.

Micro Cash Stream

Micro cash flow streams offer unique risk diversification benefits due to their granularity and scalability. Here are some key advantages:

Granular Exposure: Micro cash flow streams provide investors with exposure to a diverse range of individual properties or rental units within larger real estate portfolios. This granularity allows investors to spread their risk across multiple assets, reducing the impact of any single property’s underperformance or vacancy.

Reduced Concentration Risk: By investing in micro cash flow streams, investors can mitigate concentration risk associated with traditional real estate investments, where a significant portion of capital may be tied up in a single property or asset class. Diversifying across numerous cash flow streams distributed across different properties, locations, and asset types can help safeguard against localized market downturns or disruptions.

Lower Barrier to Entry: Micro cash flow streams often have lower minimum investment requirements compared to traditional real estate investments, making them more accessible to a broader range of investors. This accessibility enables individuals to build diversified real estate portfolios gradually over time, leveraging smaller investment amounts.

Dynamic Portfolio Management: Investing in micro cash flow streams allows for greater flexibility in portfolio management. Investors can adjust their exposure to different properties or asset classes more easily, reallocating capital based on changing market conditions, risk profiles, or investment objectives.

Income Stability: The diversified nature of micro cash flow streams can help stabilize investment income streams by reducing the impact of individual property vacancies or fluctuations in rental income. Even if one property experiences temporary setbacks, the overall portfolio’s performance may remain relatively stable due to the income generated from other assets.

Potential for Higher Returns: While individual micro cash flow streams may offer modest returns, the cumulative effect of diversifying across multiple streams can lead to attractive risk-adjusted returns over time. Additionally, the scalability of micro investments allows investors to gradually increase their exposure to successful cash flow streams, potentially enhancing overall portfolio performance.

Conclusion

In essence, RealNOI represents a paradigm shift in real estate investment—one that prioritizes stability, inclusivity, and sustainability. As the platform continues to evolve and expand internationally, it holds the promise of unlocking new opportunities and reshaping the global real estate landscape for the better.