RedSwan CRE Review: 26% Returns on Tokenized Real Estate?

RedSwan through its Commercial Real Estate (CRE) marketplace is promising mouthwatering returns for investors.

The company wants to help real estate developers raise equity investment for their projects while creating avenues for investors to make money.

But is the RedSwan CRE worth investing your money?

In this article, we take a look at what the guys at RedSwan are up to and if their opportunity is viable for investing in.

Let’s take a look.

What Is RedSwan CRE All About?

RedSwan CRE is a tokenized real estate marketplace that enables the listing of commercial real estate for investors to invest in.

The platform classifies real estate opportunities according to types and location, making it easy for investors to choose what and where to put their money.

Each CRE opportunity is tokenized and comes with a different targeted return rate and cash yield.

Investors can make equity investments into commercial real estate properties and earn returns for a specified period from the properties.

The real estate properties are developed with investors’ funds and then rented out or sold. 

Investors then get proceeds from the rental or sale of the properties within specific timelines, until they recoup their investment.

How Does RedSwan CRE Make Money?

RedSwan CRE makes money by charging fees on both sides of the deal.

They charge investors a 1.5% management fee on returns, and charge project owners a 2% asset diversification fee.

They also make money from reinvesting tokenized funds into interest-bearing crypto portfolios.

How to Invest in RedSwan CRE

To invest in RedSwan CRE, simply log onto their website, RedSwanCRE.ng and register an account.

You’ll need to do your KYC and become accredited before you can start bidding on real estate deals.

To start bidding on deals, simply find a suitable CRE deal that is open and make your presale expression of interest.

If you qualify, you’ll be able to invest in your chosen asset when the digital token sale begins.

How Much Returns Does RedSwan CRE Offer?

It depends on the CRE token you are investing in.

Here are the varying returns per token:

APLO

  • Targeted Investor IRR: 26%
  • Targeted Average Cash Yield: 10%
  • Targeted Equity Multiple: 2.17x
  • Minimum Investment: $1,000

SSCA

  • Targeted Investor IRR: 11.4%
  • Targeted Average Cash Yield: 4.7%
  • Targeted Equity Multiple: 1.5x
  • Minimum Investment: $1,000

RSCP

  • Targeted Investor IRR: 8%-13%
  • Targeted Average Cash Yield: 4%
  • Minimum Investment: $1,000
  • Diversified CRE Fund

RSVA

  • Targeted Investor IRR: 14%-18%
  • Targeted Average Cash Yield: 5.5%
  • Minimum Investment: $1,000
  • Diversified CRE Fund

LHOK

  • Targeted Investor IRR: 19%
  • Targeted Average Cash Yield: 8.3%
  • Targeted Equity Multiple: 1.91x
  • Minimum Investment: $1,000

Is RedSwan CRE Legit or Scam?

There is no clear answer to this.

The company however looks like a serious company, as they are a Registered Investment Advisor (RIA) in the U.S.

But still, according to the best of my research, their operation in Nigeria is not regulated by any of the regulatory bodies in Nigeria.

So, investors need to exercise a bit of caution and due diligence when dealing with RedSwan.

What I Dislike About RedSwan CRE

There is nothing much to dislike about RedSwan CRE, however there’s a bit of a grey area in there for me.

I don’t see how the tokenization of the CRE assets improves the opportunity in any way.

Also, why is RedSwan choosing to put the 2% asset diversification fee from projects into crypto assets and not some traditional investment that is regulated?

I find these confusing.

What I Like About RedSwan CRE

The opportunity.

It’s a great avenue for massive real estate infrastructural development in Nigeria, a win-win for both real estate developers and investors.

And what’s even better?

Everything can be done seamlessly over the internet with little or no bottlenecks.

Can You Lose Money With RedSwan?

This is a big one.

But it’s always best to hear directly from the ox’s mouth.

According to RedSwan, “actual results can differ from forecast and there is the possibility of principle loss.”

So, make of that what you can.

Should You Invest in RedSwan CRE?

The responsibility to invest depends on you, the investor.

You could do your due diligence on CRE projects to know the project handlers and if they have insurance in place for their construction project.

Maybe then they could be worth investing in.

But as for me, I’d be happy to sit this one out until I see reasonable traction from the company and its listed real estate projects.