Great turnout at PropTech Pitch Battle on July 11 2019

It was our pleasure to be one of the co-hosts for the PropTech Pitch Battle on July 11 2019.

Thanks for Asia PropTech for organizing together. Also, thanks Sidley Austin, Dimsum Venture, Great Eagle, and Booqed as the judges.

We want to help the PropTech startup, like ourselves, to share ideas and insights with other professionals.

We hope everyone had a great time and looking forward to seeing you all soon.

Special thanks to Bryan Wong for taking photos for us. You can find more about him here: https://www.bryanwongdesign.com/

Denzity is co-hosting for the event PropTech Pitch Battle on July 11 2019

Hey everyone,

Denzity is co-hosting (with AsiaPropTech and Dim Sum Venture) a PropTech Pitch Battle on July 11 2019 (Thursday). At Denzity, we empower PropTech entrepreneurs, like ourselves, by giving you the spotlight to present your PropTech ideas and solutions in front of real estate experts, venture capital investors, and an audience seeking to learn more about the PropTech space in Asia.

PropTech Pitch Battle

Date: July 11, 2019 (Thursday)

Time: 6:30 PM – 9:00 PM

Venue: Sidley Austin Office, 39/F., Two International Finance Centre (IFC2), 8 Finance Street, Central, Hong Kong

This is the perfect event for:

  • Start-ups – pitch your idea in front of an audience and receive constructive feedback from experienced industry experts and venture capital investors
  • University students – pitch and test your idea in front of industry professionals
  • PropTech enthusiasts – learn and network with like-minded industry professionals
  • Angel investors / Corporate – connect with PropTech entrepreneurs and enthusiasts

You can find more information and get your ticket here: https://bit.ly/2XaKmIH

If you are a PropTech entrepreneur and would like to apply to enter the Pitch battle, you can submit your application by filling up the google form (https://bit.ly/2Jkt3ez) or email to [email protected] by July 3, 2019 (Wed).

Successful applicants will be notified by July 5, 2019 (Fri).

Looking forward to seeing all of you there!

Great turnout at the Future of Real Estate Investing on May 30 2019

It was our pleasure to be one of the co-hosts for the Future of Real Estate Investing event on May 30 2019.

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Thanks for all the co-hosts (RealInflo, C Block Capital, Asia Proptech, ASTA, Mai Capital, FMI) for organizing the event together.

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We have shared our insights on Real Estate fractional ownership and why it needs to be popularized.

We hope everyone had a great time and looking forward to seeing you all soon.

Special thanks to Bryan Wong for taking photos for us. You can find more about him here: https://www.bryanwongdesign.com/

Sign up for our second beta test

Beta testing link: https://beta.denzity.io/

We received some great feedback and comments from our first beta testers (launched at the end of last year). We are close to launching our full version and would really value your feedback and suggestions!

How the beta testing works

As a beta tester, kindly browse the dashboard with your Mac/PC and follow on-screen instructions to test our latest tools and functions to screen investments. Your first visit should take less than five minutes, after that you can spend as long as you’d like!

As a beta tester, we gather your feedback to:

  • Screen for bugs and inconsistencies on our dashboard
  • Improve the Denzity experience by incorporating your comments and suggestions
  • Aggregate beta testing data to revamp our beta towards the full product

Afterward, you will be provided with a questionnaire to share your experience.

Thanks so much for your help and we look forward to learning your comments.

Join us and let’s get started now: https://beta.denzity.io/

Denzity is co-hosting for the event “Future of Real Estate Investing’ on May 30, 2019, in Hong Kong

How will technology solve the inefficiencies, unnecessary costs and unrealized value of today’s real estate industry?

Denzity will be a co-host for the event “Future of Real Estate Investing’ on May 30, 2019, in Hong Kong.

Come and join us for an interactive discussion as we look at the ways technology can improve real estate investment and management

You can find the event details here: https://bit.ly/2JffrUb

We look forward to sharing ideas with you there!

 

Co-hosts:

Denzity

Asia Security Token Alliance

Asia PropTech

Realinflo

FMI Investment Group

MaiCapital

C Block Capital

 

Date:

May 30, 2019 (Thursday)

Time:

6:30 PM – 8:30 PM

Venue:

C Block Capital, 35/F, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong

Realinflo, Our Community Partner

Denzity is proud to announce a partnership with Realinflo, a database platform that is creating the ‘Bloomberg’ for the real estate industry. We would like to introduce Realinflo (www.realinflo.com) to you as the newest member of Denzity’s community.

Traditionally, real estate information has been difficult and time-consuming to obtain. Realinflo solves this problem by providing access to granular transaction data and insights directly from the market. This is combined with their comprehensive land and building database to give a view of normally opaque real estate markets. Realinflo’s vision is to drive improvements in data standards and to become the leading data analytics platform, which is demonstrated by being the first Royal Institution of Chartered Surveyors (RICS) Tech-affiliated firm in the Asia-Pacific region. Currently, Realinflo tracks data on 68 cities in 25 countries across Asia, the Middle East and Africa.

Realinflo’s difference is in the details, for example for any particular building data points are available such as current leases, occupancy rates, historical sales transactions, development details, parameters and planning history. With a complete picture of the market, it is also possible to visualize how real estate markets have changed over time, future supply coming online and to run predictive analytics to make data-driven real estate decisions.

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Gary Walter MRICS, CEO and Co-Founder of Realinflo

Gary a Chartered Valuation Surveyor and has over 11 years’ experience in the real estate industry, with Swire Properties in Hong Kong and Colliers International where he worked extensively across markets in Asia. Frustrated by the lack of reliable data across the region, he founded Realinflo with the aim to raise standards and transparency in the region. Gary has also worked with Virgin Atlantic Airways and has a keen interest in non-profit and social impact work in Africa, having undertaken projects in Kenya, Rwanda, and Tanzania. In 2016 Gary was awarded the excellent Young Achiever of the Year in the Hong Kong RICS Awards and is a regular speaker at PropTech events.

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Denzity and Realinflo both presented at the Propteq Asia 2018 Conference

Gary views that Realinflo’s partnership with Denzity partnership is a natural collaboration in growing Denzity’s ecosystem in the real estate industry. Gary shares Denzity’s mission to match everyday investors with the best possible investment opportunities around the world. By having access to a diverse range of verified listings backed by comprehensive datasets, investors will be able to make informed decisions on which real estate investment best suits their risk-reward profile.

Why we do, What we do

Why we do, what we do…

For centuries, Real estate ownership has been a powerful engine for wealth creation and preservation thanks to properties’ ability to hedge inflation and generate steady cash flow. However, commercial property has always been restrictive because of the large amount of capital required to participate. Traditionally, everyday investors would allocate 5 to 15 years’ savings towards a down payment for one apartment unit. Alternatively, a lack of real estate in one’s investment portfolio would mean that they are confined to riskier investments such as cryptocurrencies or the stock market.

Technological advancement and promulgation of regulations encouraging fragmental ownership have made Real Estate Crowdfunding possible. This is the medium by which everyday Investors can overcome the traditional barriers to enter the real estate market. Starting with US$5,000, everyday investors can now diversify their portfolio and lower risk by allocating capital to professional real estate managers and platforms. By leveraging economies of scale, Real Estate Crowdfunding opens up an equal playground for all investors to materialize real estate investment opportunities.

That being said, the time-consuming and complex nature of real estate investment is one of the major reasons investors shy away from participating. This is why Denzity was born – a marketplace built to drive greater participation in Real Estate Crowdfunding and to overcome the traditional barriers to real estate ownership.

Our three major missions:

  • Denzity lists unique project listings from different platforms around the world and allows investors to easily compare them before committing their capital.
  • Denzity does not compete with platforms. Instead, we partner with them and amplify their efforts.
  • Denzity invites real estate professionals to contribute by providing investors with the tools, resources, and insight to make an informed investment decision.

Denzity’s ecosystem creates a gateway to make real estate ownership more accessible for everyone. Our goal is to create a collaborative community for investors, platforms and real estate professionals to form a virtuous cycle of building communication, confidence, and relationship.

As a Real Estate Crowdfunding Platform, you can rely on us to proliferate the benefits of property investments, so you can focus on sourcing and managing attractive real estate projects. We will connect your projects with the right investors. Direct communication channels and transparency between investors and platforms is key to driving confidence in Real Estate Crowdfunding. Denzity firmly believes the following key benefits can be achieved:

  • Provide investors with a simple, user-friendly dashboard to browse different real estate projects located in various parts of the world.
  • Encourage investors and platforms to participate in gathering knowledge and expertise.
  • Help educate investors on a diverse range of topics and thereby building confidence for investors to participate more.
  • Bring stakeholders from different parts of the world closer together and share the benefits of real estate ownership.

Click here to check out our announcement of our exclusive beta test program here: https://bit.ly/2R4tCLA

Stay tuned!

Denzity Team

 


 

Posts you might be interested:

Real Estate Crowdfunding versus REIT: https://bit.ly/2PoJBqQ

Equity vs. Debt Crowdfunding, which is right for me?: https://bit.ly/2OuxIvr

Introduction to Real Estate Crowdfunding: https://bit.ly/2Qmqknh

Denzity on Real Estate Crowdfunding (Part 1 of 3)

Here at Denzity, we are passionate about effecting change in an asset class and primary tool for capital appreciation and wealth preservation maintained through generations. Real Estate Crowdfunding (“RECF”) utilizes technology as a medium by which property ownership can be spread and diversified among a wide demographic of investors from different places.

Real estate has traditionally been an asset class that only available to wealthy individuals. Real estate platforms, such as private equity funds, have therefore only been able to seek investment from accredited investors. Accredited investors are individuals with USD $200,000 annual income or USD $1,000,000 net worth.

RECF is a new medium made possible since 2012 with the introduction of Jumpstart Our Business Startups Act (also known as the JOBS Act). The JOBS Act means real estate platforms can access a wider demographic of potential investors. However, there are several key issues which arise as a result.

In this article, we will highlight the technical knowledge investors need before investing.

Real estate investment requires technical knowledge. This is why Platforms hire real estate and investment professionals to perform due diligence and benchmarking before making an investment. As an investor, you will usually be provided with an information package, primarily containing an investment memorandum (“IM”) and limited partnership agreement (“LPA”).

The investor would read the IM, which contains details on the real estate property and its market (geographic and type), along with cash flow projections based on the platforms forecasts. Platforms will explain what capital expenditures are needed to improve the building’s marketability and the tenancy schedule to achieve a certain return to investors — one of the key metrics used by investors to decide on investment opportunities.

As an investor, you would need to understand the terms and conditions of the LPA, a document which details the legal manner by which you participate in the project. An investor who subscribes for shares in an investment fund, the vehicle used to hold the project, would be subject to certain rights and obligations under the LPA. These obligations can present itself in the form of a legal and commercial obligation.

The point is that understanding these documents require specific knowledge predominantly held by investment professionals who are typically employed by investment funds. These investment professionals accumulated their specific knowledge and skillset having worked in the finance (e.g. banker) and/or legal (e.g. lawyer) fields.

For example, a real estate project purchased for USD $10,000,000 obtains a USD $6,000,000 loan from a bank. The bank provides the loan subject to a facility agreement (“FA”). The FA is a legal document which defines the project’s legal obligations, which are primarily to (i) pay interest to the bank, (ii) repay principal ($6,000,000) to the bank, and (iii) maintain certain metrics referred to as covenants, such as a specified loan-to-value (“LTV”).

As an investor, you should understand the FA which highlights one the key risks associated with the project and your investment. In the event, the project is unable to satisfy the covenants (e.g. unable to repay the bank loan principal), the project would be in default and your investment would become at risk.

Therefore, investors without the technical knowledge stand at a disadvantage to investment funds which hire investment professionals. So what’s the good news?

Denzity is backed by a team of real estate and investment professionals here to guide you along the way of searching and filtering RECF investment opportunities, and here to help you understand the key metrics and provide insights.

We hope these articles provide you with insight into the real estate investment process and journey!

If you’re not already signed up with Denzity, make sure to sign up to receive the latest updates!

What you need to understand about real estate capitalization rate (Part 1 of 4)

Real estate investment is an opportunity to generate regular income and achieve capital appreciation in a stable asset held over a 5–15 year period. Real estate investors typically compare investment opportunities start by using one key metrics: Capitalization Rate, aka Cap rate.

In this article, we highlight how you should understand how to compute the cap rate and how to use cap rate when comparing different real estate crowdfunding investment opportunities.

This is part 1 of 4 articles covering the real estate cap rate:

  1. What is the real estate cap rate?
  2. What you need to understand about the real estate cap rate?
  3. How does the real estate cap rate form part of your investment analysis?
  4. How leverage helps you achieve your investment goal in real estate.

Part 1: What is the real estate cap rate?

Cap rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. It is calculated by dividing the property’s net operating income (“NOI”) by the current market value or acquisition price of a property.

Capitalization rate = Net Operating Income / Current Market Value (Source: Investopedia)

Once an investor knows a property’s cap rate in a specific market, the cap rate can be used to compare with other types of real estate cap rates located in different markets around the world to understand which is more suitable to their investment preference. We have made a quick guide for you below:

Understand the Real Estate Cap Rate

That’s it!

Let’s use an example: an investor (Bill) wants to achieve a 12% annual return over 5 years by investing in real estate.

Bill decides to purchase an office building for $600,000 that generates $60,000 of net operating income (NOI), which represents a 10% cap rate. This means the property value would need to increase by at least 2% per year to meet Bill’s goal of 12% annual return.

Bill decides to achieve his investment goal by being more dependent on the cash flow (net operating income) generated as rent by the office building’s tenants, rather than a strong capital appreciation.

In this example, Bill is characterised as a defensive, income-based real estate investor seeking real estate investments that require minimal out of pocket expenses (e.g. refurbishments). In case you are wondering: yes, we will cover different investing style and types of investment play in future blog posts.

In Bill’s case, the cap rate is a key metric to begin his initial screen to compare real estate investment opportunities. For example, a shopping mall being sold at an 8% cap rate means that Bill would rely on (i) strong capital appreciation and/or (ii) leverage in order to achieve Bill’s goal of 12% annual return.

Cap rates are an important way to screen investments and narrow down a list of investment opportunities which suit your individual preference. Once you’ve decided on which investment opportunity to pursue, you will need to gain a better understanding of the real estate’s location and market conditions to form your investment analysis.

An important aspect here is timing — something which Denzity wants to clarify with ‘cap rate compression’, explained below.

What will we cover in Part 2?

We have just scratched the surface when it comes to cap rates! There are more metrics you should take into account when making an investment decision.

In our next article, we will discuss how you should understand and compare the cap rates of different types of real estate located in different places around the world to decide on which best suits your investment preference.

We at Denzity are here to help you understand the key metrics and provide insights. We hope these articles provide you with insight into the real estate investment process and journey!

If you’re not already signed up with Denzity, make sure to sign up to receive the latest updates!