BuildingBits was founded in 2016 in Portland, OR with the purpose of creating a commercial real estate crowdfunding platform that targets a wide range of retail and institutional investors, with a primary focus on individual non-accredited investors, and featuring an industry-first secondary market trading platform to provide instant liquidity. The Company’s platform allows its investors not only to invest in commercial buildings, but also to freely trade their shares (Bits) on a secondary market, hence the name – BuildingBits, an investment into a small piece (a Bit) of a large building.
BuildingBits’ business model offers the following unique features:
- Ability to invest in a particular property chosen by an individual investor from a wide range of assets available for sale on the BuildingBits platform.
- Easy access to investing in multi-million dollar commercial properties by non-accredited investors with a low minimum investment. These investments have historically only been available to a select few high-net-worth individuals and investment companies.
- Secondary market trading platform to provide instant liquidity to individual investors akin to trading shares on a stock exchange. Liquidity is the main problem for any equity investment, and to a lesser degree, for debt instruments, in real estate, and is currently only available in a form of REIT shares. BuildingBits will bring liquidity to investment in a single commercial real estate asset.
- Blockchain and smart contracts are poised to become game changers in the real estate industry. As the next step in its innovative business, BuildingBits will tokenize the assets purchased on its platform and distribute security tokens, which will become digital ownership units, to its investors. Tokens will be traded at digital exchanges and will bring instant liquidity to the traditionally illiquid class of assets.