Realties was set up as an online platform to give any person with $100 the ability to own a share in Kiwi property.
In less than 5 minutes, you can become the legal owner of a share of an income-producing property.
It saves investors time, pressure and stress of trying to buy an investment property.
Also, have a share in any capital gain of the property.
Realties finds and prepares each property to present to the investors under the properties own Limited Liability Company (LLC).
Realties is not a development company but finds income-producing properties with specific criteria. We take the stress away from the individual investor so that they know they will receive a return from day one and that their investment is backed immediately by brick and mortar (an entity).
Because each property is owned separately in an LLC and runs independently, the investor can choose which property they want to invest in and which they don’t.
By being able to invest $100 per share, investors can spread their capital over many different investment properties.
Individual shares can be bought and sold on the Catalist secondary site, overcoming one of the challenges of investing in property.
Until now, the only way a person could invest in property was either by having a large cash deposit and the credit ability to borrow from lending institutions. Even wealthy or wholesale investors had to be verified by a third party, e.g. lawyer or accountant. These conditions meant 90% of the population couldn’t enjoy the benefits a few elites enjoyed.
Realties will look for opportunities to buy properties with good returns. These properties fall into the category of being too big for an individual investor and too small for commercial fund managers.
Why Realties was born
After 0ver 40 years in the Real Estate industry, I’ve had several ups and downs in the real estate market.
Learning the hard way, the best time to SELL was when everyone talked about buying property and banks gave away money as if there was no tomorrow.
The best time to BUY was when everyone was talking doom and gloom, the banks were starting to tighten their lending criteria, the interest rates were increasing, and the Reserve Bank was tightening the bank’s lending rules.
Instead of a 5-20% deposit, it became 10-20%. Even if you were buying a second home for your ‘retirement plan,’ you needed 40%. If you didn’t earn a certain amount (which kept rising) when you thought you’d saved a deposit, the bank would decline because you were spending too much to keep your children at daycare, etc.
The time to BUY is now!
Unless you have inherited money, won the lottery, or exited crypto before it crashed, you’re out of luck.
But THERE IS A WAY
Realties gives you, the consumer, the newlyweds, the elderly, those renting and can’t see themselves ever getting out of that situation, the chance to pool their money together, $100 at a time.
For the cost of two lottery tickets, six cups of coffee, or three blocks of cheese, you can get a share in an investment property without having to pay any bank loans, without having anyone in government change the rules. Why? Because you are in control!
Some of our biggest companies have done precisely this:
Fonterra – farmers pooling their money together to take their produce to the market, maximising their price
Foodstuffs – a supermarket collective enabling strong purchasing power
Realties was born to allow the “little guy” to get a foot on the ‘property ladder’ at their own pace.
So many elderly are stuck; if they sell, the money they get for their family home might just be enough to buy their downsized accommodation, so why move?
The young Kiwis who have returned from overseas, after working hard, saving up what they thought was a deposit on a home to settle down, only to find the rules have changed because they haven’t worked in New Zealand. They don’t have a credit history, so they can’t get a loan from the banks under their new anti-money laundering laws and lending criteria.
Realties will give them a way out. By everyone pooling their money together, investing in multi-tenanted properties (thereby helping the housing shortage) earning income from the rentals. It allows Kiwis to get ahead and build safe bricks and mortar investments.
Each property is owned individually by the investors, who contribute from $100 each. Properties are professionally managed to ensure they are rented and maintained. The company which owns the property controls rents and expenses.
When you buy shares in a company, you hope to profit from the rise in share value. You may also receive a dividend if your investment increases in value.
Realties enables you to buy shares in a property you choose and when you choose. You can diversify your investments by investing in multiple properties. Unlike shares, you may benefit from capital gains.
Two years ago, I started investing in a similar opportunity in the United States. My first investment cost me only $75. Every week now I receive a Rent Report via email along with payment to my bank account. I am currently building my portfolio as and when I can.
I enjoy knowing that this small investment across the world will eventually grow, and my grandchildren will benefit. The beauty about it was it didn’t cost me a fortune, wasn’t mortgaged against my home – it’s invested in bricks & mortar with no debt, and I own a tiny part of a property. I can even visit the USA to see my properties.
If it’s successful in the USA, why can’t it be successful in New Zealand, especially given our obsession with property?
Timing is essential in everything you do in life. Historically, property has doubled in value every 7-10 years. If you bought over the past two years, it’s going to take 7-10 years to get back to where the prices were two years ago. I strongly feel the best time to buy is now.
Realties was born to beat the odds, enjoy the benefits of wealth, plan, and understand that you, too, can build a solid portfolio of bricks and mortar to give you and your family security in later life when you most need it. We’d love you to join us!
John H. Caldwell
Our mission is to provide affordable investment opportunities in property for individuals who may not otherwise be able to invest in a property.
We believe that property ownership should be within reach of everyone, regardless of their financial situation.
We want to provide a solution to expats arriving home to find that even if they have a 20% deposit on a home they can’t get a loan because they don’t have a credit rating.
We want to help the elderly who want to downsize to access affordable shared accommodation while also earning income.
We want our investors to feel secure, safe and confident in all aspects of their role as a property investor.
By doing so we will create a strong community of investors who will work together for the benefit of all parties concerned.
John had spent the last 30 years as a property developer, specialising in providing for mid-lower income earners. Financially he was very comfortable – but John had seen an opportunity. John began researching fractional property investment. He invested in a successful US property platform where, now he receives weekly rent from his investments. Why couldn’t it work in New Zealand?
John’s last project before retiring was a bespoke multi-tenanted dwelling consisting of one-bedroom units. He foresaw that demand for such properties would grow.
John has encountered many young people trying to get into their first home. They did not have enough for the deposit without taking a significant risk of over-committing. He is also acutely aware of the challenge of the elderly trying to downsize but unable to because the two-bedroom unit they wanted was just as much as their family home.
These and other factors have seen the market grow to unprecedented levels.
With the market turn, John could see the right timing to come out of retirement!
He discovered several NZ companies had attempted to get into fractional property investment without success.
They were selecting the wrong properties. Either single-occupant homes (high risk of loss of rent) and/or high-end homes which typically couldn’t provide the same returns as entry-level property.
They were seeking funds from investors and waiting for their investors to bear fruit before they secured a property.
They were seeking quick returns, e.g. buying property to do up and sell for a profit.
With John’s experience in property development and managing multi-tenanted properties, he was confident he could make property ownership a reality for thousands of Kiwis and investors looking to diversify. Realties was born!
John spent the next few months working with a team of experts to bring Realties to life.
John is excited to be able to offer property investment from as little as $100 to everyday Kiwis, including tenants who rent the properties!