WS1643: Real Estate Tokenization | Andy Crebar

Andy is one of the co-founders and CEO of Honey Bricks, which helps sponsors raise and manage capital through an online platform. The company also offers a white label product called GP Flow, which allows sponsors to manage all their investor operations themselves without access to the Honey Bricks marketplace. The idea behind Honey Bricks was to enable syndicators to have access to more capital and a larger pool of investors in alternate markets who were using different sorts of digital securities. Honey Bricks takes minority LP stakes in multifamily investments, with investments ranging from a quarter of a million to a million dollars as a special purpose vehicle, which brings all the investors and helps the sponsor use technology to manage them. The company has been successful in its investments with great sponsors across the US.

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Key Points From This Episode: 

  • The value of real estate is not affected by the value of cryptocurrency such as Bitcoins.
  • Tokenized securities are legal under certain regulations such as private placements, five or six B’s or C’s, transfers under Section 481, and half a one a seven or rule 144.
  • The sponsor has complete control over who is on their cap table through a smart contract that has everyone’s digital wallet address, which is tied to an individual or an account. This ensures that only accredited and eligible investors are allowed to invest in the security interest. This is particularly valuable for sponsors with a large number of LPs as it unlocks liquidity amongst the LP base and brings in next-generation investors into pro real estate.

Links Mentioned in Today’s Episode:

Andy Crebar

Andy Crebar is the Co-Founder & CEO of HoneyBricks which is on a mission to unlock the potential of commercial real estate investing. He’s spent his career working in fintech and SaaS and lives in New York with his young family.

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