Revolutionizing Commercial Real Estate: e-States Paves Two Unique Paths to Success
There’s an old saying that goes, “If you hit a fork in the road, take it.”
That’s the philosophy of e-States, a startup revolutionizing the commercial real estate industry, when it comes to crafting financial and technological strategies.
“As a financial technology startup, we have the opportunity to augment both our financing options and the software solutions that we provide,” said e-States CEO Matthew Schneider. “Expanding our company in both of these directions will truly empower our users.”
Designed to democratize commercial real estate, the e-States online platform requires a minimum of just $500 to invest. To make this possible, the company uses blockchain technology to turn ownership into transferable shares. With digital ownership, both property owners and investors obtain liquidity, a streamlined investment process, and transparency.
Seeing the needs of commercial real estate developers, e-States is looking to expand its financial services.
“We want to explore several different financing methods,” Matthew said. “Beyond equity ownership and financing, we’d like to consider tokenized debt, which would make us a private lender as well. This way, we can help developers fulfill the complete capital stack.”
e-States is also working on a commercial real estate development fund, through which the startup will be acquiring and developing properties.
“Our plan is to incorporate multiple funds with varying investment theses, resembling a company like Fundrise,” Matthew said. “This is in addition to the individual properties that are being listed that are not owned by us. A combination of risk and reward can offer an investor a diversified portfolio.”
Underscoring much of what e-States stands for is its dedication to revitalizing communities. Through a subsidiary, it plans to pursue affordable housing and ESG initiatives.
Still in the brainstorming stages is an e-States plan for community building.
“In Milwaukee, we participated in a huge commercial real estate syndication that transformed a rundown factory into a brewery on one half and then a restaurant and accounting firm on the other half,” Matthew said. “The sponsor for that property then invested in all of the businesses within it. I think in order to stimulate economic growth in the areas in which we are redeveloping, we would like to invest into the local businesses that move in. As we guarantee the success of these businesses, we’re strengthening our tenant relationship and ensuring cash flow for investors.”
And then there are the possibilities presented by technological innovation.
“Whether it’s goggles or just on your computer screen or phone, we imagine that investors will be able to interact with a property,” Matthew said. “We’re encouraging people to live where they want and invest where it makes sense — which might be 1,000 miles away. So how do we retain that personal connection with the assets and the property owner? Well, what if we’re able to immerse ourselves in some sort of virtual scenario in which we are actually touring the property?
“What if investor webinars, instead of a Zoom meeting, are actually ‘walking’ through and interacting with a property. We can say, ‘Hey, these units right here, these are leased out to these three businesses; this is the area that we’re looking to renovate.’ And then we can actually render and visually demonstrate the impact that an investor’s capital would have on the property.”
e-States could offer virtual renderings that illustrate how renovations would increase a property’s value.
“This is a no-brainer,” Matthew said. “Not only does this bring commercial real estate into the digital age, but it fulfills our mission of fixing the disconnect between investors, property owners, and service providers.”
Visit e-states.com to learn more.