Real Estate Question / Email

[EricSchleien]

I got an email from someone wanting to be on my podcast (The Intelligent Investing Podcast).

 

At first my initial gut reaction was to say no but I also don't know much about this and wanted to get feedback from others who have more knowledge on this stuff than I do. I can't tell if this is interesting or scammy. This is totally out of my wheelhouse.

 

Here's the email I got. Any thoughts guys?

 

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I would love to tell you about Matthew Sullivan, he can discuss how he is helping homeowners unlock equity and investors gain the ability to get into a new sector, all thanks to the blockchain! Would that be alright?

 

He is the founder/CEO of quantmRE.com – making real estate assets tradeable on the blockchain so single family homeowners can release the equity that is locked up in their homes without taking on more debt. The quantmRE platform will also enable investors around the world to access the single family owner-occupied sector – a huge asset class that up until now is relatively untapped.

In addition, Matthew is co-founder of the $50m Secured Real Estate Income Strategies – a Regulation A+ real estate debt fund launched in September 2017, co-founder of Secured Real Estate Income Fund, and president and founder of Crowdventure.com, a real estate crowdfunding company.

 

Matthew is a serial entrepreneur, author of ‘Head First – a roadmap for entrepreneurs’ and host of the Hooked On Startups podcast and YouTube channel. He worked with Richard Branson’s Corporate Finance Team in the Virgin Group for five years and was a director and trustee of Virgin’s London Air Ambulance.

 

Matthew went to Westminster School in London, UK and studied Law at Birmingham University before pursuing a career in finance and stockbroking, specializing in the South East Asian markets. In 1997 he founded Europe’s first internet billing application service provider. Since then he has founded and led companies in the United Kingdom, India, Australia and the United States in the finance, telecommunications, technology and real estate sectors.

[rb]

You can interview him if you want, it's your podcast. I took a look at their site and I'd say it's scammy. I can't say for sure who's getting scammed, the home owner or the crypto holder. I'm leaning towards the crypto holder, but it could even be both. It's definitely not a sound business.

[Gregmal]

You can interview him if you want, it's your podcast. I took a look at their site and I'd say it's scammy. I can't say for sure who's getting scammed, the home owner or the crypto holder. I'm leaning towards the crypto holder, but it could even be both. It's definitely not a sound business.

 

It's both. I am certain this guy takes more than his fair share in fees for "helping" homeowner meet investor.

[rb]

Yea, but from what i can tell the homeowner gets to sell part of the equity and not pay rent on that bit. So advantage homeowner. On the other hand he gets to service the whole mortgage, the partial crypto owner doesn't pitch in, which isn't cool, but still rental yields>interest rates. I guess it all comes down to the fees and maybe other legal unplesantries.

 

On the other hand, the crypto owner gets to hold an illiquid REIT, with no control over the underlying assets, no liquidity, and no yield. Sounds like the crypto guys is definitely getting screwed.

[DTEJD1997]

Hold up, wait a minute...

 

if you are trading/doing deals in real estate, there is already a "block chain" it is the register of deeds/liens and what is called chain of title.  It is all recorded down at the courthouse/city hall/local municipal government.

 

In the USA, contracts/interests in real estate are very finicky and subject to specific/special legal requirements.  Ownership interests in real estate have to be recorded. 

 

This just does not sound right at all.

I would also be cautious in getting recommendations from 3rd parties to interview dudes like this....smells like a set-up.

[EricSchleien]

It kind of does. Would any of you be interested in co-hosting the show with me and having him on and asking him tough questions? That could make for a VERY fun show :)

[rb]

Honestly I'd do it. But I'm pretty much a gruff, no nonsense finance type. These guys seem like they're doing an Internet publicity tour. So I don't I don't think that would be such a good idea. I wouldn't want to ruin your program.