On the Real Estate side
One of the key differences between Robinland and its competitors is the type of real estate projects that Robinland sources. Most competitors use Single Family Residences as their underlying assets; while this is the asset type most people are most familiar with, there are a set of issues compared to the large-sized commercial real estate that Robinland sources:
- Regulatory risk: Regulatory authorities are most concerned with retail investors and households and thus there are constantly changes in regulations surrounding residential properties (e.g. single family homes, townhomes, condos). However, there are much fewer changes in regulations surrounding commercial properties.
- Cash-on-cash returns: The rental or interest dividends generated by commercial real estate are on average much higher than that of residential's for mechanical reasons. These returns are previously only accessible by large institutions like real estate PE or pension funds. With Robinland, we democratize this segment such that retail investor with small ticket size can also access them.
- Unit economics: One needs to go through the same selection, due diligence, onboarding process and legal process regardless of the total size of the real estate project. As a result, the unit economics work much better for a $2-200mn sized commercial real estate than a $200k sized single family home. As a result, Robinland's cost is lower, and can thus offer retail investors much better returns.