AlphaFund Exclusive: Inside Look at Domunus, the Revolutionary Real Estate Investment Platform

Interview with Domunus Co-Founders

AlphaFund: Thanks for joining us today. Can you start by giving our readers an overview of what Domunus does?

Domunus: Absolutely. Domunus is revolutionizing the real estate investment space by opening it up to everyone, not just the ultra-wealthy. We provide technology and services that allow people to invest in high-quality rental properties with as little as $1,000.

Our platform uses data analytics to identify attractive investment properties in high-growth markets. We acquire those properties, renovate them, and fill them with longterm tenants. Then we securitize the properties into shares that investors can purchase through our website or app.

This allows investors to build a portfolio of rental properties and earn passive income from rent payments without having to be a landlord or property manager themselves. We handle all of that on their behalf.

AlphaFund: That’s really opening up access to an asset class that has traditionally been extremely difficult for average investors to participate in. What gave you the initial idea?

Domunus: The two of us have over 20 years of combined experience as real estate investors and property managers. We were successful in building our own portfolios but saw how hard it was for others without deep expertise and huge upfront capital to do the same.

At the same time, we saw new models like crowdfunding really democratizing investment into other alternative assets like startups. We realized there was an opportunity to do something similar by using technology to open up rental property investing to the masses.

AlphaFund: It sounds like your key innovation is applying securitization and fractional ownership to rental properties. Can you expand on that piece?

Domunus: Yes, that’s really the core innovation that unlocks everything. By securitizing rental properties into shares that can be bought and sold, we can divide the upfront investment into tiny increments that are accessible to almost anyone.

Each rental property we acquire gets turned into a separate offering of shares on our platform. Investors can then go in and buy whatever amount of shares they want, starting with just $1,000 for most offerings.

They become fractional owners of that specific property and its rental income stream. Rent payments go into a fund and we distribute prorated payouts to all the investors in that deal based on their share count.

This securitization model hasn’t really been applied to individual rental properties before. It’s opening up a whole new way for people to invest in real estate without correlation to the public stock market.

AlphaFund: It certainly seems to fill a big gap in the marketplace. Before we move to the next section, what’s next on the horizon for Domunus?

Domunus: Our top priorities are continuing to expand our geographic footprint into new high-growth markets, and layering in more investment product types. We’re looking at securitizing other types of cash-flowing real estate assets like self-storage facilities, mobile home parks, and commercial real estate.

The goal is to provide Domunus investors with a whole suite of alternative real estate investments to build out their portfolios. We really want to establish Domunus as the go-to platform for access to this asset class.

FAQ on Real Estate Crowdfunding and Securitization

What is real estate crowdfunding?

Real estate crowdfunding refers to utilizing the crowdfunding model to pool investment capital from a large number of investors for the purpose of investing in real estate assets like rental properties or developments. This allows investors to get fractional ownership of properties they wouldn’t be able to afford entirely on their own.

What is securitization of real estate?

Securitization is the process of converting an asset like a rental property into liquid securities that can be issued and traded. This allows investors to gain partial ownership of the asset just by purchasing some of the issued securities, rather than having to buy the entire asset outright.

Is real estate crowdfunding secure?

Reputable real estate crowdfunding platforms thoroughly vet all investment opportunities before listing them, and investors’ money is typically held in an escrow account. However, all investments carry risk and returns are not guaranteed. Investors should always do their own due diligence.

What are the benefits of investing in crowdfunded real estate?

Key benefits include the ability to invest with a relatively small amount of capital, diversification across multiple properties and markets, passive income from rentals, and the potential for appreciation in the underlying assets over time.

What are the drawbacks or risks?

Risks include lack of liquidity since you can’t sell your shares as easily as public stocks, potential vacancies impacting cash flow, and liabilities as a fractional property owner. There’s also a reliance on the quality and performance of the platform operator.

How are returns earned and paid out?

Returns primarily come from a prorated share of the rental income generated by the securitized properties you invest in. Appreciation in the property values can also be captured when the assets are eventually sold and capital gains are paid out.

About AlphaFund

AlphaFund is a leading digital media brand focused on the world of alternative investments and financial innovation. Through our website, podcast, newsletter and video channels, we aim to be a definitive source for information and commentary on sectors like:

– Crowdfunding and online capital formation

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– Real estate and securitization platforms

– Angel investing and VC funds

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In addition to young fintech startups, we frequently interview big funds, institutional investors, and established financial players that are embracing innovative models like crowdfunding, digital assets, securitization and more.

The alternative investment landscape is evolving extremely rapidly. Our goal is to always stay ahead of the curve in tracking the disruption and dishing the insights that give our readers a critical knowledge edge.

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With this three-pronged sourcing approach of inbound inquiries, our own proprietary pipeline, and our expert network, we’re able to consistently identify and gain access to some of the most compelling founders and game-changing business models across alternative investment sectors.

Once we’ve solidified our lineup of interviews for a given month or quarter, our team of skilled writers and editors takes over to research each company in depth and develop a set of insightful discussion topics and questions tailored for each specific founder.

The end result that gets published on AlphaFund is a series of lively, candid interviews that give readers rare behind-the-scenes access and an in-depth understanding of the companies and funds pioneering the future of investing.

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