Imagine if there was a way to generate revenue from the most popular and in-demand vacation rental properties, but with none of the grueling legwork for renovations and maintenance. If there was a way to leverage cutting-edge computer algorithms to determine which investment properties have the potential to generate positive returns on Airbnb—and the ability to invest in these properties with less money down and less hassle by using proprietary software to make the most out of your limited dollars.
Meet reAlpha—a new short-term rental investing startup pioneering a digital platform and business model that has the potential to democratize the global $1.2 trillion short-term rental market. It’s turning this booming industry on its head with proprietary algorithms that score properties using rigorous criteria to determine which properties have the potential to be most profitable. And with a 25% surge in demand for short-term rentals in destination and resort locations over the past three years, it’s clear that the demand for this type of platform is growing.
After spending time to prep their technology and AI for mass scale acquisition, reAlpha has opened a $75 million investment round to build the property company inventory and potentially grow the portfolio to $1.5 billion in asset value. Not only is it making it possible for everyone to invest directly in short-term rental real estate, but it’s also inviting both accredited and non-accredited investors to own shares on the ground floor of the breakthrough property company. Here’s why investing in reAlpha is a no-brainer…
High Barriers To Entry
Short-term rental real estate is skyrocketing across the globe. Airbnb reported its strongest quarter ever in 2021, with a 70% year-over-year spike compared to Q3 of 2020, and this could only be the beginning of its growth. According to the latest statistics, companies like Airbnb are expected to see surges of revenue 50% to 100% higher than in previous years. The industry is expected to show continuous and steady growth for at least the next five years.
While these statistics are promising for high earners with real estate experience, 2022 isn’t shaping up to be any easier for the majority of hopeful investment property buyers due to home prices and interest rates all expected to rise. More and more people are noticing that investing in short-term rental real estate could yield high rewards, but the problem is that the barrier to entry is often too high. Buyers have to put at least 25% down, potentially renovate the property, which could cost thousands, and then endure an ever-growing task list of bookings, maintenance, advertising, and beyond. Let’s not forget about renter’s insurance, accounting, permitting, taxes, and it goes on. Added up, rental property ownership can get very expensive, very quickly.
How reAlpha Democratizes The Market
A key component to reAlpha’s planned success is its technology-first acquisition process to build its portfolio. The company uses a novel AI/ML platform named reAlphaBRAIN. This proprietary software has the ability to analyze and score thousands of properties for their potential in terms of nightly rental price, area popularity, and long-term price appreciation. It determines this information by rigorously analyzing multiple factors, including a neighborhood’s walkability and crime rates, distance to attractions, rent readiness, and much more.
Once the software comes up with a score for a property, it goes through acquisition specialists who make the final determinations. If all criteria look good to go, the property will then be listed on reAlpha’s member-only broker-dealer-managed marketplace. reAlpha maintains 51% ownership. The app is intended to then pair users with other like-minded people to form a syndicate for the other 49%, which divides costs between all members for an affordable investment.
When the property is purchased, only 10% down is required compared to the typical 25%, thanks to reAlpha’s exclusive partnerships with lenders. This advantage allows the company to tie up less cash and ensure that it can better maintain limited investor resources to purchase other houses. reAlpha also manages everything from listings to bookings to cleaning so that members don’t have to.
Fractional ownership paired with low down payments and property appreciation through strategic renovations can potentially generate profit for both reAlpha and its users. This way, all parties have the opportunity to roll any potential profits into additional property investments and continue their portfolio’s journey.
Your Invitation to Become a Shareholder
There’s no question that reAlpha is generating buzz and building key partnerships for scale. In fact, its first investor Crawford Hoying is a $1.3 billion real estate holding company.
Even still, this is just the beginning for reAlpha, which was recently Qualified by the SEC for its Reg A+ public offering and seeking $75 million in funding with the end goal of acquiring thousands of properties.. This traction potential is backed by reAlpha’s track record to date, and after launching in November of 2020, it has been hitting milestones at a rapid pace. The startup has already built multiple technologies to help scale the property company portfolio, tested its model on an initial group of homes, and opened global offices. And it now has over 22,000+ investors in process from 80+ countries around the world.
The startup has gone miles in a short time and is looking ahead with plans to ultimately go global and serve all 220 Airbnb markets across the world. For investors looking to get in on the ground floor with industry-disrupting startups, reAlpha is avidly seeking shareholders to join its mission to transform the world of short-term rental real estate by investing today.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT IS AT: HTTPS://SEC.REPORT/DOCUMENT/0001213900-21-047649/ YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.