Introducing a new and better way to invest in commercial real estate with Jasper.io
Commercial real estate is the most important asset when building long-term, generational wealth; this is because of its many attractive attributes:
Commercial real estate has historically produced attractive total returns relative to other asset classes and over the last 20 years outperformed major stock indexes in most countries.
Tangible asset ownership
Commercial real estate is one of the few investment classes that is a physical asset with meaningful intrinsic value. A property’s land has tangible value—as does the structure itself.
High yielding cash flow
Commercial real estate is typically secured by long-term leases which provide strong cash flow through rental income. Dividend yields from commercial properties (rental income) are significantly higher than average dividend yields on equities.
Commercial real estate benefits from favourable tax characteristics in most countries. Mortgage interest and depreciation deductions can often shield a large portion of a property's income.
Unfortunately, despite its many positive attributes, investors of all types lack efficient access to this asset class. It's difficult to source, operationally intensive, has a high cost of entry, requires a high level of expertise to evaluate, and is illiquid.
Fractional ownership opportunities do exist, such as analogue syndication and REITs. However, these investment products typically have high minimums and fees, lack transparency, have limited liquidity and (in the case of REITs) provide no investor control at the individual asset level.
In a study we completed internally, only 12% of surveyed investors said they had exposure to commercial property, while nearly 70% said they would like to. This shows there is a fundamental problem with access to this asset class. These results mirrored our founding team's personal experiences. We all want to own more commercial property to grow our wealth over time; however, there is simply no efficient way to access high-quality opportunities.
This is why we started Jasper. Our vision is to create a future where anyone can invest in the world's best commercial real estate from as little as $1000. Cash dividends are deposited directly into investors' bank accounts each month, they have full transparency over returns and fees, and they can sell their ownership easily and on their own terms. Most importantly, it can all be done on a smartphone or similar device.
Jasper is all about using technology to democratise access to high-quality investment opportunities, so our investors can grow their wealth over time and live better, more fulfilling lives.
How we plan on doing it:
Deliver a better onboarding experience
Analogue incumbents use a paper-based and manual identity verification processes to meet their anti-money laundering responsibilities; this is time consuming and frustrating for any investor. We have built an integrated investor accreditation process using biometrics and various API endpoints to automate the process, ensuring our investors can create an account and start investing quickly and easily.
Create a frictionless investment process
We have digitised the traditional prospectus and subscription documentation and are integrating our bank feed for autonomous reconciliation. This will create a frictionless investment process that requires little to no manual intervention. This autonomy creates cost savings for us—compared to analogue incumbents—which we pass on to our investors via lower fees and lower minimums.
Use data and AI to make better investment decisions
We are building a data engine to help our team and partners make better and faster investment decisions. This engine will ingest and aggregate data, using algorithms to derive insights and visualise findings. Our ultimate goal here is to surface and acquire the best opportunities to ensure our investors see market-leading returns.
Jasper is bringing unprecedented liquidity to a previously illiquid asset class. Analogue syndication typically means an investor's capital is tied up for 5–10 years; this timeframe isn't attractive to many investors. Our platform will be one of the first to facilitate the buying and selling of commercial real estate investments. Our technology will match buyers and sellers to execute transfers with no manual intervention. This means our investors can invest with greater flexibility, knowing that they have the potential to sell their investment in a timeframe that suits their objectives.
Build out an operating partner network to help us scale
We do not plan on physically managing the properties on our platform on a day to day basis. Instead, we will partner with industry-leading operators in each country. This approach better aligns incentives between all parties and ensures our global growth is not slowed down by the intensive operational requirements of property management. Our sole focus is to bring the world's best investment opportunity to our investors through a digital and global marketplace.
This is the start of a very long journey, and we are excited to share our learnings and challenges as we progress.
Today, we are accepting early access requests for the Jasper platform. If you are interested in growing your wealth through commercial real estate investments, you can request early access here.
CEO & Director, Jasper
Published June 5th, 2019