Who is Jointer?
Jointer is a commercial real estate blockchain startup based in Silicon Valley, CA and Tel Aviv, Israel. Most recently they have been in the news for their silenced $1.5 Billion bid on the Chrysler Building in New York City. The Jointer team is led by Jude Regev, 3 successful exits, Lior Gal, 18 years IT experience, and Kyle White, ex-Trulian with blockchain experience.
Jointer’s esteemed advisors include Nobel Prize Winners, the previous Chairman of the SEC, the previous Vice Chairman of the NASDAQ, founder of Visa, the previous Chief Economist of the U.S. Department of State, and the CFO of Yahoo.
What is Tokenization?
Tokenization allows owners of assets to sell fractions of equity or income streams to investors on the blockchain. In return, owners receive needed capital by sourcing from a limited crowd since the tokens classify as securities. Currently, 3rd party asset tokenization solutions are expensive and still leave owners vulnerable to regulatory liability and high marketing costs.
Aside from the cost, other barriers such as regulatory risks and liquidity vulnerability leaves owners skeptical of the tokenization process. This produce can produce tokenized properties that owners were desperate to sell using a gimmick ending up on the blockchain rather than more lucrative assets utilizing the technology to benefit investors.
Jointer removes current barriers and provides a full cycle solution. So owners are not liable to costly regulation that could put them behind bars!Also, Jointer allows the public to purchase tokens so they are no longer limited to a select few.
Rather, owners simply submit their property to Jointer for approval to receive completely free tokenization.
Jointer’s Tokenization Process
1. The property goes through an underwriting and approval process to identify the fair market value.
2. Jointer issues debt tokens to borrow funds from the lenders.
3.The property is moved into an institutional land trust, controlled by a third-party trustee.
4. Jointer purchases the land trust’s beneficiary rights from the owner.
5. In addition to full payment for the equity, as long as the owner continues taking care of the property as a principle, Jointer allows the owner to earn up to 50% from the equity Jointer purchased.
6. Every time Jointer receives revenue from the equity, the funds will be used first to pay the public interest return for the borrowed funds. The rest we will split between Jointer and the owner.
How can they offer tokenization for free?
Where most solutions tokenize individual assets which presents scalability issues and unnecessary risks for investors, Jointer tokenizes the entire industry. Unlimited scalability is accomplished through the issuing of venture debt tokens pegged to national commercial real estate performance which is backed by cross collateral.
The company earns profits by splitting returns with investors. This model allows Jointer to offer free end-to-end tokenization services to owners which will attract lucrative buildings rather than buildings struggling to be sold.
Why should we care?
Currently, the method to tokenizes properties invites less than lucrative opportunities and requires companies to purchase the property before tokenization occurs. Jointer’s method allows for scalable tokenization.
Currently, tokenized assets require the blockchain company to purchase the property (or partner with existing firms), investors incur due diligence, then investors purchase tokens. This process requires each step to be complete before the other begins presenting scalability issues to a tokenized future.
Jointer’s new tokenization model allows for an unlimited number of property owners to submit their properties for tokenization. And if the funds are available in the reserve the tokenization takes place instantly. Investors are continuously lending funds through the purchase of debt tokens which carry returns based on an index, removing the due diligence step.
Jointer’s scalable approach will allow billions of dollars worth of lucrative commercial real estate properties to tokenize on Ethereum thus increasing blockchains market cap which helps us all