6 minute read
August 31, 2020
Fractional CRE Ownership with Viktor Viktorov of REINNO
This article originally appeared on www.buildingproptech.com, a retired blog where I interviewed proptech founders on how they were building and growing their businesses.
Hey Viktor! What’s your background and what led to you working in PropTech?
Hi! I’m a serial entrepreneur with background in retail, M&A, investing and business growth.
A few years ago, I discovered blockchain. Back then it was a completely new technology with few proven use cases. It truly intrigued me and I started exploring the cryptocurrency space. As I was meeting other entrepreneurs, investors and VCs, I learned about many amazing applications of blockchain.
I also saw people looking for a way to tokenize physical assets. After doing a little bit of research, I realized that blockchain and tokenization could have a huge impact on the real estate industry. Let’s be honest, historically it has not been very efficient or inclusive. Fractional ownership can significantly democratize and optimize this asset class.
In late 2018/early 2019, I gathered a small team of dedicated people and we have been working on REINNO since then.
What problem are you working to solve with REINNO?
Commercial real estate is illiquid. It takes a lot of time, money, paperwork and middlemen to complete a real estate transaction. It is even harder to get financing. Mortgages are restrictive and inflexible.
With fractional digital ownership represented as tokens, real estate investors can complete their deals faster and cheaper than ever; and when they need funding, they can get an instant offer by using these tokens as collateral.
What is REINNO's growth strategy?
Our goal is to create a proptech/fintech ecosystem. Right now, people who are interested in the technology might be scared of owning tokenized real estate because there are not enough services designed for such assets. By offering tokenization, lending, and a marketplace for tokenized real estate, we can build the confidence that our clients need and support them every step of the way.
We believe that lending against tokenized real estate is our strongest product. However, as you might know, there are not that many tokenized buildings in the world. Therefore, our strategy is to establish the market by tokenizing properties, and then provide loans to those who own them.
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What tactics have you tested for growing your user base and revenue? What has been most effective?
It really depends. When it comes to onboarding properties, the best-case scenario is when the client comes to us – either after they saw a big press release or someone referred them to us. Usually these people are already aware of what we do, how the technology works and what the benefits are. It makes our job easier.
When we reach out to someone, we use a very personal approach. There is a lot of talking, explaining and educating. It is very important to us that more people know about tokenization, even if they never use our services. As the public becomes more aware, the industry becomes stronger, and individual companies have more opportunities to grow.
When it comes to onboarding investors, we like cooperating with small communities in the blockchain space. Usually, their members are passionate early adopters who love innovative financial products.
What has been the hardest part of building, growing or monetizing REINNO?
I believe it’s paperwork/legal work. There is still a lot of it in the backend, even though we are reducing it for the clients. We want to make sure that every document, every contract, every template is compliant.
It is not a problem but it is certainly time-consuming. Sometimes I have to read 50 pages of legalese instead of finding new ways to grow the company. It has to be done though.
What insights about real estate and technology have you came to realize whilst building REINNO?
Real estate is a great asset class. It is one of the most stable investments. When you combine it with technology, it also becomes flexible and efficient. I am not sure if technology makes everything better but in the case of real estate, it certainly does.
Where can we find out more about REINNO and connect with you?
Visit our website, https://reinno.io and follow us on social media: