Episode 107 | Real Estate Investment through Home Equity with Matthew Sullivan

Founder and CEO of QuantmRE Matthew Sullivan got his start in finance and technology long before he came to the world of real estate. Before Matthew came to the US, he started his career as a stock broker, and then he moved into corporate finance. For the last 25 years or so, he has been an entrepreneur in technology and finance. Real estate always intrigued him, and once he arrived in the US around nine years ago he immersed himself in the real estate industry. It was on the heels of the “Jumpstart Our Business Startups'' (JOBS) Act which helped pave the way for online investment platforms. This gave rise to real estate investing and crowdfunding platforms. 

The amount of capital invested in these systems is in the billions of dollars. This application of Fintech (financial technology) helps homeowners gain access to their home equity for investment purposes. Ultimately, homeowners can get cash from home equity with no monthly payments, no interest, and no added debt. Investors do not require the homeowners to go into further debt, but do help them unlock their home equity to allow for investment purposes. 

Matthew and his team built a platform to allow homeowners to gain access to their equity, and in turn sells fractions of these equity bundles to investors. This makes the equity in homes tradeable and investible. Homeowners gain by unlocking their equity so it can work on their behalf in investment vehicles. Even if the property goes down in value, investors can still make a profit based on the structure of the agreement, as it is an option agreement with a cushion built into it.

Blockchain Technology is the Foundation and Creates Trust

The platform leverages blockchain technology and delivers tokens to investors to keep track of the shares. There is a layer of trust with the blockchain because there is no ability to go beyond the actual offering. If it is at 100 tokens, that is all that is available for trading and it is recorded on the blockchain. Ultimately, investors can invest in owner-occupied housing that is not for sale, that the owners do not plan to sell. The homeowners often have a basic need to raise capital. This platform offers a way to give homeowners some of their own money that is locked in their equity.

Contact Matthew by email at investors@republic.co. Visit Matthew at QuantmRE. Stop by his LinkedIn profile to learn more.

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