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HomeNews2022 LEX Real Estate Investing Platform Review • Benzinga

2022 LEX Real Estate Investing Platform Review • Benzinga

LEX Markets Scores at a Look

See all Present Choices

What’s LEX Markets?

There isn’t any scarcity of on-line actual property investing platforms for buyers to select from. One of many nice strengths of those platforms is they permit buyers to entry actual property offers in markets all around the nation. Sadly, one disadvantage many of those platforms have in widespread is that one of the best alternatives are largely restricted to accredited buyers. 

One other one is the truth that the choices are sometimes achieved by means of actual property funding trusts (REITs) or crowdfunding, and have maintain intervals that render buyers’ capital illiquid for a number of years at a time. For years, this mix of non-accreditation, incapability to decide to lengthy holding intervals and lack of ample capital to fulfill excessive funding minimums has stored most buyers frozen out of one of the best institutional actual property alternatives. 

LEX Markets needs to shatter that paradigm by combining the wealth-building energy of actual property possession with the liquidity of shares. As a substitute of elevating capital by means of REIT choices,  LEX Markets makes their funding choices public, which permits buyers to purchase fairness shares in a secondary market. Sweetening the package deal much more, LEX Markets permits buyers to purchase these fairness shares of institutional actual property belongings for less than $250 per share! 

The LEX Markets enterprise mannequin is not only new, it has the potential to be revolutionary. Opposite to in style perception, the wealthiest buyers and most profitable institutional funds have vital holdings in institutional high quality actual property versus shares and bonds. With most conventional investments like shares, you need to promote to earn a revenue (though some most popular shares do pay dividends) after it appreciates in worth.  

After all, when you’ve bought it, you possibly can not revenue from it. Against this, buyers can earn passive earnings on the hire income generated by institutional high quality actual property with out having to liquidate the asset. Then, because the rents go up, which will increase the asset’s worth, house owners can take one other revenue if and when the asset is bought. 

LEX Markets choices give buyers the liquidity of shares with the wealth-building energy of actual property possession. It’s this mix of liquidity and passive earnings that makes LEX Markets choices so interesting. 

Think about, for instance, you noticed an $11,000,000, class-A mixed-use constructing in a first-rate space of New York Metropolis, however didn’t have $11,000,000 and even six figures to purchase an fairness share. With LEX Markets you should purchase possession shares of this constructing as a inventory providing for $250/share. 

You’ll be able to maintain on to these shares, and reap the earnings they generate for so long as you want, but when your state of affairs modifications and you might want to get out of the deal, you possibly can promote them on the inventory market.  Sounds good, doesn’t it? Properly, this isn’t an imaginary providing. It’s an precise LEX Markets deal on Lennox Avenue in New York Metropolis. 

As half proprietor of a LEX Markets providing, it is possible for you to to take pleasure in all the advantages of actual property possession, together with the flexibility to make an annual tax deduction for depreciation. 

The package deal LEX Markets choices give buyers is extremely spectacular. With that mentioned, they don’t have the range of choices you will see that on different platforms. Nonetheless, when you think about {that a} small share of buyers are in a position to benefit from the choices on different platforms, LEX Markets deserves a robust 4 star score right here. 

LEX Markets Buyer Service

A platform with such a radical tackle investing as LEX Markets should have a complete customer support program. As with all investing platforms, particularly one with a brand new enterprise mannequin, client training is a key plank of customer support. LEX Markets client training could be very strong. Merely clicking on the “Assets” tab of the splash web page will reveal a scroll-down menu with the next three decisions: 

  • Study
  • FAQ (Ceaselessly Requested Questions)
  • Weblog

The “Study” part walks buyers by means of every little thing they should find out about the best way to put money into LEX Markets. The primary article on this part is “How Buying and selling Works on LEX”. After reviewing this part, even a novice investor will be capable of perceive the workings of the platform and the life cycle of a LEX Markets deal. 

The follow-up sections are LEX vs. REITs (which compares and contrasts the distinction between the 2 investing fashions) and Making Sense of Cap Charges (an vital metric for actual property investments). Should you had no understanding of the distinction between REITs and the LEX Markets enterprise mannequin, or why Cap charges are so vital, you’ll be told sufficient after studying these primers to really feel assured investing. 

The FAQ web page does an excellent job of coping with some other questions buyers might need. Coated matters embrace:

  • Compliance, threat and taxes
  • Getting began 
  • About LEX
  • Account, privateness and safety
  • Reporting (taxes)
  • Authorized
  • Property house owners

When you have questions that this very well-stocked part doesn’t reply, merely emailing the customer support staff at [email protected] will get you a fast and thorough reply to your inquiry. The one factor lacking from here’s a Youtube channel explaining every little thing. Nonetheless, the whole customer support and shopper training package deal LEX Markets could be very spectacular. It is a robust 4 star effort. 

No investing platform is full with out a strong set of safety measures. In spite of everything, the monetary knowledge maintained by a platform like LEX Markets is the kind of data hackers drool over. It’s apparent LEX Markets realizes this. They take very robust steps to safe their shopper’s data. That begins with what they name “institutional-grade” safety protections reminiscent of SSL Certificates and periodically conducting “penetration checks” to ferret out any potential weaknesses. 

Investor funds are held with a third-party custodian, Apex Clearing Company. LEX and APEX are additionally members of the SIPC (Securities Funding Safety Company), which is the investor equal of the Federal Deposit Insurance coverage Company (FDIC). Meaning investor deposits are insured for as much as $500,000 in securities (shares) and a most of $250,000 in money. 

Better of all, LEX Markets doesn’t promote investor data to any third events or knowledge mining firms. Meaning you don’t have to fret about getting a dozen telephone calls from their cooperating distributors after investing as a result of LEX Markets doesn’t monetize your data in that method. The extra safety the higher.

LEX Markets does have a cellular app that’s out there to iPhone and Apple customers, who charge it very extremely. At the moment, it is rated at 4.2 stars out of a potential 5 by the Apple neighborhood. Performance is excessive and the consumer expertise largely mirrors that of the dashboard or account part on the desktop utility.

 It is at all times a pleasant worth add for customers when a platform has a corresponding cellular app. That is particularly the case with a platform like LEX Markets, which permits buyers such a excessive degree of liquidity with their investments. The addition of an Android possibility would take them to five stars right here. Till then, the LEX Markets cellular app earns a strong 4 stars.

LEX Markets Person Expertise

The consumer expertise at LEX Markets is definitely on par with that of competing platforms. Discovering choices, accessing vital data and signing up is all quite simple. The identical holds true for getting fundamental questions answered or contacting the LEX Markets shopper companies staff. All of that’s along with the truth that LEX Markets lets “common guys” put money into institutional choices with out breaking the financial institution. Total, it’s undoubtedly a 5 star consumer expertise. 

LEX Markets vs. Opponents

In the intervening time, LEX Markets stands alone on this explicit methodology of actual property investing (taking buildings public like shares). With that mentioned, there are some competing platforms in the true property tokenization area reminiscent of AKRU and Redswan that provide buyers excessive liquidity and low buy-ins. 

Nonetheless, one main distinction between LEX Markets and the tokenization platforms is you could solely liquidate your tokens on blockchains run by the platform. Different similarities and variations between LEX Markets and competing platforms might be discovered within the chart beneath.

  • Greatest For

    Accredited & Non Accredited Traders

  • Greatest For

    Accredited Traders

  • Greatest For

    Blockchain actual property

The ingenuity and attraction of LEX Markets’ enterprise mannequin is apparent. Permitting buyers to benefit from institutional high quality actual property choices by taking the underlying belongings public is a kind of concepts that’s so good, you possibly can’t assist however marvel why extra platforms aren’t doing it. It’s vital for buyers to know that potential liquidity is just not a assure of liquidity. Simply because you possibly can put your share up on the market doesn’t imply somebody will purchase it. 

Nonetheless, the truth that you possibly can commerce it publicly as a substitute of being restricted to a REIT’s secondary market or actual property tokenization platform’s blockchain provides you a a lot better likelihood of liquidating your funding. The one factor holding LEX Markets from a 5 star score is the comparative lack of choices, which is one thing that will change sooner or later. Non-accredited actual property buyers ought to take a protracted, onerous have a look at this 4.5 star platform. 

Ceaselessly Requested Questions

Questions & Solutions

A

The reply to the query is LEX Markets is legit is an unqualified “sure”. Their revolutionary enterprise mannequin has the potential to open the world of institutional investing as much as a extra numerous group of buyers than ever earlier than. By taking actual property belongings public and promoting fairness shares within the asset like shares, LEX Markets gives buyers an virtually unprecedented degree of entry and adaptability when investing in institutional actual property belongings. 

Q

What Sort of Business Actual Property Asset is the Most Worthwhile?

A

There are such a lot of variables that decide the profitability of a industrial actual property asset that no single kind of asset can lay declare to being the “most worthwhile”. Elements like the unique buy value of an asset, common value per sq. foot, power or weak point of a given actual property market and the standard of competitors all play main roles in figuring out the profitability of an actual property asset.  

All In One 24x7
All In One 24x7http://allinone24x7.com
We launched allinone24x7.com at the end of 2022. Since the beginning, we have shared honest reviews intending to help consumers make informed purchasing decisions.
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