What is Denzity?
We are a database of the Real Estate Fractional Ownership industry. Users can find different information on Real Estate Fractional Ownership projects from different platforms around the world, all in one place.
How does Denzity work?
We are a database for investors to search and conduct due diligence on Real Estate Fractional Ownership projects. The information provided on projects (see: Project Listing) and platforms (see: Platform Profile) are sourced directly from the Real Estate Fractional Ownership platform.
Users can click-through directly to the project of interest. On the platform’s website, users would then complete their know-your-client, anti-money laundering, and risk disclosure form before they can invest. During this part of the journey, Denzity is not involved and does not intermediate transactions (between the investor and platform).
What is Denzity’s goal?
We open up the Real Estate Fractional Ownership industry by improving accessibility, increasing transparency, and expanding the volume of transactions in the global real estate market. We provide a simple & intuitive portal for a wide variety of investors to search & filter investment opportunities.
We are focused on creating a safe & transparent ecosystem for users to search & filter Real Estate Fractional Ownership investment opportunities.
Is Denzity an investment firm?
No, we are not an investment firm. We display Real Estate Fractional Ownership projects and do not intermediate for any investment opportunities.
Does Denzity provide financial advice?
No, we do not offer any financial advice and we are not associated with any of the Real Estate Fractional Ownership platforms available on Denzity.
Is Denzity a Real Estate brokerage firm, or a Real Estate Fractional Ownership Platform?
No, we are not a real estate brokerage and we are not a Real Estate Fractional Ownership Platform. We do not sell shares or intermediate Real Estate Fractional Ownership Projects displayed on Denzity.
Does Denzity make any investments in Real Estate Fractional Ownership Platforms?
No, we are an independent third-party that connects users with Real Estate Fractional Ownership platforms. We do not invest in any projects or offerings.
Does Denzity charge users a fee?
Denzity is free to users.
How do I sign up and subscribe to Denzity?
Come join our community here: https://www.denzity.io/subscribe
How do I reach you if I have questions?
If you have any questions, please send us an email at: [email protected]
We will get back to you promptly.
What is the best way to find out about what’s happening at Denzity?
Subscribe, so we can keep in touch! https://www.denzity.io/subscribe
We will share news with you when we hit milestones and let you know of any events during our journey!
Where is Denzity based?
Denzity is based in Hong Kong.
To learn about how we started, read our story: https://www.denzity.io/about
About Real Estate Fractional Ownership
What is Real Estate Fractional Ownership and how does it work?
Real Estate Fractional Ownership makes investing in real estate more accessible by lowering the minimum investment amount committed by each investor. Before Real Estate Fractional Ownership, real estate investment required a large investment in a high value, illiquid asset which was held for a few years.
Real Estate Fractional Ownership means a number of investors pool their money together and acquire a piece of real estate, for example an office building, which is managed by a professional asset and property management team. An investment firm (typically called a Sponsor) would begin by engaging with a Real Estate Fractional Ownership platform to raise the required equity and/or debt.
Real Estate Fractional Ownership platforms identify the real estate investment, based on their expertise and preference, then conduct the necessary steps to invest such as market analysis and property due diligence, legal and financial due diligence and arrangements. The Real Estate Fractional Ownership platform then sets a timeline to raise the required equity and/or debt and makes information available to investors.
What are the benefits of Real Estate Fractional Ownership?
Real estate is one of the oldest forms of investing and demonstrated a long history of consistent capital growth. Real estate combined with fractional ownership brings greater access to a wider pool of investors, and as a result, creates an abundance of opportunities.
Real Estate Fractional Ownership resolves key issues faced with traditional real estate:
Low Capital Requirements: By lowering the entry barriers, a greater number of investors can overcome the traditional barriers of entry into the real estate market through fractional ownership. Smaller and flexible commitments help reduce risk.
Better-informed decisions: From buying, managing, and overseeing the project, Real Estate Fractional Ownership Platforms offers visibility of property details and ownerships. They provide the transparency needed for you to understand and monitor your property investments.
Build a diversified portfolio: You can build a portfolio of various properties based on your preferences freely. By allowing you flexibility to commit, each individual Investor can decide how much to commit to each project. This allows you to have peace of mind and control when allocating your wealth based on your own goals.
Real estate co-investment has always been around. How is crowdfunding different than co-investing, and why will it reach mass markets?
It is important to understand that co-investment and crowdfunding platforms have the same role of providing an investment firm with the necessary capital to make a large real estate purchase (investment), for example:
With co-investment, a small apartment building at US$10 million would have raised US$5 million in investor’s equity from 5 to 10 investors, with each investor averaging an equity commitment of US$500,000 to US$1,00,000.
With crowdfunding, a small apartment building at US$10 million would have raised US$5 million in investor’s equity from 500 to 1,000 investors, with each investor averaging an equity commitment of US$5,000 to US$10,000.
Prior to Fractional Ownership, investors could only achieve diversity in their investment portfolio by making investments in different companies’ stocks and bonds. This meant investors would remain susceptible to market dynamics, irrespective of the underlying companies’ financial performance. Real Estate Fractional Ownership is a way for investors to achieve real portfolio diversification by diversifying their holdings into fragmented ownership of real estate.
Real Estate Fractional Ownership allows investors the opportunity to invest in real estate through fractional ownership, which otherwise would not have been possible before.
What is Fractional Ownership?
Fractional ownership occurs when two or more investors collectively acquire an asset. For example, five different people purchase a residential home for US$100,000 – each person would have invested US$20,000 each – this is fractional ownership.
Investors can invest in different types of real estate located in various cities around the world, while leveraging on the Real Estate Fractional Ownership Platform’s specialised knowledge and professional expertise in managing each Project.
We believe Real Estate Fractional Ownership is the future of real estate investing as it allows a greater number of people to participate in the real estate market worldwide. We aspire to open the doors to make the Real Estate Fractional Ownership market accessible to everyone.
What do Real Estate Crowdfunding platforms do?
Real estate investment is typically characterized by equity and debt investments, with both focus areas having sub-tiers such as preferred equity participation or 2nd lien loans. Most Real Estate Crowdfunding platforms specialize in either equity or debt crowdfunding investment, as both require a different set of skills and expertise.
Equity crowdfunding has a greater risk-reward with more opportunities in the market as compared with debt crowdfunding. Debt crowdfunding targets a smaller section of the real estate market where projects are unable to obtain a bank loan for different reasons or an investment fund may seek to purchase a homeowners’ mortgage which is in distress and provide a more tailored approach in their mortgage payment schedule.
Beginning with the 2012 JOBS Act (Jumpstart Our Business Startups Act) in United States. Subsequently, Real Estate Crowdfunding platforms in other countries (such as United Kingdom, Australia, and Germany) began to surface.
Real Estate Crowdfunding platforms’ primarily focus on buy & hold strategies where investors are provided with an investment memorandum containing cash flow forecasts based on small or minor changes to the property’s existing tenancy schedule and operations.
Higher return can be achieved by Real Estate Crowdfunding platforms who now provide the investment opportunity to fund a property’s development phase, whether on a piece of new land or redeveloping an existing or adjacent building.
You have the choice of making an equity or debt crowdfunding investment in a buy & hold or buy & develop the opportunity.
Real Estate Crowdfunding platforms need to wear multiple hats and constantly juggling with different tasks to the real estate investment execution such as licensing, fundraising, marketing, regulation, and updating tech etc. As each Real Estate Crowdfunding project is different (investment thesis, sponsors, location, properties etc.), Real Estate Crowdfunding platforms need to consistently educate, attract, and show case investors. Denzity can relieve some of the burdens they would need to do such as facilitating updates, Investors queries, introducing sponsors, and introducing software etc.
Can a Real Estate Crowdfunding platform be a Sponsor?
Yes. Some Real Estate Crowdfunding platforms could also be a Sponsor.
How do you participate in Real Estate Fractional Ownership and who is it for?
Real Estate Crowdfunding is open to everyone. Platforms will perform regulatory checks on potential investors, such as know-your-customer (KYC) and anti-money-laundering (AML) procedures. Once regulatory checks are completed and investors find a project they are interested in, they can “subscribe”, meaning that they will sign up to a subscription agreement and provide the agreed amount of funding.
Once subscribed, Investors generally receive reports on project progress, their distributions and expectations of the project. Cash distributions are commonly received periodically until the Sponsor has either sold their ownership or the Sponsor concludes the project by selling the property and the Investor receives their ownership of the net sale price.
Real Estate Crowdfunding is for a wide range of people who want to have more real estate investments in their portfolios. You can find more information in the “For Members” section in the FAQ.
What are the cost benefits to Real Estate Fractional Ownership investors?
Real Estate Fractional Ownership investors benefit from economies of scale given the nature of how it works. In each project, investors utilize an investment fund to make the acquisition and maintain the underlying operations.
Several costs are involved in each project:
Fixed costs: Costs attributed to hiring investment professionals and sector professionals with real estate expertise. These costs are typically named as “asset management fees” or “performance fees”
Variable costs: Costs attributed to external third-party advisors such as accountants, lawyers or experts to provide advice regarding KYC and other matters. For example, a lawyer could suggest a type of legal structure that would improve operational performance by reducing the taxes payable.
Investment costs: Costs attributed to acquisition costs and costs of borrowing should there be bank borrowings to finance the investment. Investment funds may also pay a broker/agent a fee for intermediating the transaction process.
Operational costs: Costs attributed to reporting, tax filing, maintenance of accounts / finances to monitor the individual project’s performance and marketability.
Real estate Fractional Ownership provides you with accessibility to real estate ownership and benefits from contributing at only a fractional cost of the investment and ongoing costs associated with real estate investment.
Why is Real Estate Fractional Ownership a good Real Estate investment alternative?
Real estate investment has always been a primary wealth creation tool for high net worth individuals, families, corporates, and institutions all around the world, whereby a large amount of capital is placed into a relatively illiquid investment for a number of years.
Real Estate Fractional Ownership allows investors to diversify their portfolio by investing in different projects, and thus lowering their risk exposure. This can further reduce exposure in times of economic recession.
How does Denzity charge users?
Denzity is free for all members.
How does Denzity help me find the right real estate crowdfunding project?
Denzity’s metasearch algorithm is designed to provide you with a tailored result based on the information you have provided. Our focus is to understand your investment preferences to provide a tailored approach in connecting you with the most suitable Real Estate Crowdfunding Project.
Denzity is built to continually learn your preferences and update listings to find the right match for you!
What if I am aware of a Real Estate Fractional Ownership Platform that is not listed on Denzity?
Please let us know by writing an email to us at: [email protected]
We will reach out to the Platform to discuss partnership opportunities.
If I am interested in a project that I find on Denzity, how can I get more information?
Every project listed on Denzity has a direct link to the Platform offering it. When you click on the link, it will take you to the Platform’s website where you can find more information about the project.
How do I choose one Real Estate Fractional Ownership Project over another?
Depending on your investment preferences, everyone’s project requirements differ. Usually, users will look at project returns, the length of holding time, and also the amount that you want to invest in. Other common investment preferences include geographical area and type of property.
We recommend reading more about the Real Estate market and understanding the area / type of property that you are planning to invest in, so you are aware of your risks, market fluctuations and are notified of the latest market updates.
Who should be Denzity’s Member?
Denzity Basic is for everyday investors and retail investors: Professionals that want to put savings to work through alternative investments. Denzity Basic Members can access Denzity’s innovative technology solution to find their right projects such as Project Bookmarking and Project Comparison.
Denzity Pro is for Institutional firms and family funds: Firms that want to invest in asset-backed investments by relying on local professionals to execute the investment, saving them time and money. Denzity Pro Members can access the solutions that Denzity Basic Members can access with additional solutions such as Participation Benefits and Organization Servicing.
What is Denzity Plus?
Our Denzity Plus Membership is for professionals committed to sharing and exchanging ideas to benefit Denzity’s communities. Please contact us for more information.
Why should I list my project on Denzity?
Denzity is a database of the Real Estate Fractional Ownership industry. Our search algorithm matches users with the most suitable fractional ownership projects. By connecting the right investor with the right project, we are looking to improve accessibility and participation in the global real estate market through fractional ownership.
Based on each Investor’s preference and search criteria, we aim to drive better quality visits to your Platform. Denzity develops a greater understanding of each individual user as we gain more insight of their preferences of Real Estate Fractional Ownership.
We provide Platforms with various reporting packages that inform you with key data points on the types of Investors interested in your listings. This would include details on where these Investors are from, how much they typically invest, and their average investment horizon, among other information.
What is the user journey on Denzity?
Denzity focuses on directing Members to you. The members provide their criteria for a search and are presented with their tailored results. Based on the results, they decide what to pursue. Then, they will be directed to the relevant Platforms.
The onboarding (including KYC & AML) and subscription process is conducted in-house by you, with no difference than any other individual finding your website through search engines (such as Google or Bing).
You have the editorial control of the information being presented, based on Denzity’s listing template. This means that any content available on projects will be provided exclusively by you.
How can Platforms advertise on Denzity?
Denzity encourages Real Estate Fractional Ownership Platforms to set-up their own company profile so that our members understand more about your Platform offerings (e.g. management expertise, services offered, track record). Not only does this highlight your brand and ethos but it provides you with the opportunity to differentiate yourself from other platforms.
We encourage Platforms to communicate and engage with our users by sending relevant market updates either through emails or personalized messages so they will be informed of your developments.* In addition, we offer display advertising for real estate related businesses, as this complements the services and adds value for our users.
*Any emails or personalized messages would be dependent on each Denzity user’s communication preference settings.
Is there a conflict of interest between Denzity and Platforms?
No, Denzity is a database for our users to search for their most suitable projects. Our search algorithm is based on each user’s preferences that develops over time.
We do not own any projects and all projects are provided directly by the Platforms on Denzity. As such, we simply direct users to Real Estate Fractional Ownership Platforms and receive a technology access fee and click-per-action fee from the Platform itself.
How much traffic will Denzity bring me?
We serve as a search engine that matches users with the most suitable projects available from Denzity. Once a user decides to find out more information about a certain project, they are redirected to the platform’s website.
Denzity charges a technology access fee and a click-per-action fee to each platform once a partnership has been formed. We always look forward to helping platforms increase user traffic and maximise sales opportunities.
What types of platforms does Denzity work with? Would Denzity work with other real estate fractional ownership type of platforms such as Peer to Peer platforms and STO providers?
We work with Real Estate Fractional Ownership Platforms to form partnerships in listing on Denzity’s system. This includes crowdfunding, peer-to-peer lending, and security token offering platforms which have real estate projects available for investment. Regardless of the platform’s size and experience, we aim to provide all platforms with access to Denzity and increase participation in real estate investment through crowdfunding.
If you are a Real Estate Fractional Ownership Platform, STO provider, or peer to peer Platform who is interested in working with Denzity, please contact us at: [email protected].
Does Denzity require exclusivity?
No, in fact Denzity would not provide exclusivity to any single platform.
We obtain publicly available information from the Internet and index this for our users. Our aim is to match Denzity users with the most suitable project through increasing project variety.
What information do I need to provide to have my projects available on Denzity?
Denzity values the importance of professionalism. We work with all professional parties (Platforms, Sponsors and other real estate related businesses) to provide users with the [highest match], while ensuring we comply with applicable laws, regulations and rules.
For Platforms, we require your general corporate information and once your platform has been approved, we will notify you so that you can begin advertising on Denzity.
How does Denzity get my information?
Denzity has its own technology to obtain the listings on the publicly available net. We only index your projects and make it easier for our users to find what they’re looking for. We do not amend any of the project information, and do not own any of your project listings.
How do I change or delete a listing?
Denzity automatically updates your project as closed once your project is closed on your website. However, if you wish to change or delete a listing that you see on Denzity, feel free to email us at [email protected]
How does Denzity make money?
If you would like to know more about our pricing and terms, please kindly contact us [email protected]
For Real Estate Professionals & Developers
Does Denzity accept listings from developers, sponsors, and brokers?
As of now, we do not intend to list deals directly from developers, sponsors, or brokers. We only wish to facilitate the process and transactions between investors and Real Estate Fractional Ownership opportunities.
I have a project that I want to finance with Crowdfunding. Can Denzity help?
We are not a Real Estate Fractional Ownership Platform, therefore we do not list any properties. However, we recommend collaborating with one of our partners, who are specialised in Real Estate Crowdfunding and will be able to list your project on their site. Once that is done, we will be able to collect that data and your listings will show up on Denzity (subject to approval)!
If you have any questions regarding which platform to use or what the difference is between platforms, you are free to browse their company profiles, or you can also email us at [email protected] for more information.
Do I have to pay?
Denzity is free for Investors. We charge a technology access fee and click-per-action to the Real Estate Crowdfunding Platforms once a partnership has formed.
Does Denzity accept advertisements from developers, sponsors, and brokers?
Absolutely, but only if the advertisement is not related to financing and we deem that the content is appropriate to our community! Please contact us by sending an email to [email protected]
If I am not an Investor, Platform, or real estate professional, why should I subscribe to Denzity?
Our vision is to create a real estate crowdfunding ecosystem that is not solely focused on Real Estate Crowdfunding Projects. Our vision is to allow more people to be able to access and benefit from Denzity.
Why did we start Denzity?
We believe Real Estate Crowdfunding should be open to everyone – greater accessibility drives greater participation and economies of scale for the Sponsors. Given the plethora of real estate investment opportunities around the world, real estate crowdfunding means “the world is your oyster”.
Why participate in Real Estate Crowdfunding instead of traditional “safer” ways, like Bank Deposits?
Bank deposits or treasury bills represent the safest, lowest-yield form of savings – typically referred to as a risk-free rate. Any other form of asset-based income generating investment usually generates a yield above the risk-free rate.