e-States Revolutionizes Commercial Real Estate for Gen Z Investors
By David Thompson
Jul 14, 2023 11:20 AM EDT
Jul 14, 2023 11:20 AM EDT
Matthew Schneider(Matthew Schneider) (Credit: Getty Image)
e-States is laying the groundwork for members of Gen Z to unlock the potential of commercial real estate.
That's the message from Matthew Schneider, the 21-year-old CEO of e-States, the online platform democratizing commercial real estate.
"My generation, Gen Z, was not adapted, especially after COVID, to the corporate lifestyle," Matthew said. "I think the changes that have occurred, with industries becoming remote, working digitally, and having a more relaxed and automated atmosphere, this is what e-States is bringing into commercial real estate. This industry has traditionally consisted of old money, handshake agreements and stacks of paperwork. e-States is bringing that modern touch-that digital touch-and really changing how we invest in commercial property."
Speaking to the modern workplace that Gen Z commands, Matthew said, "People don't need a nine-to-five that's just packed with busy work. There's a lot that can be streamlined and simplified. Work doesn't have to be dramatic and pressing. It can be a little bit more relaxed, and we can utilize technology to enhance our workflows."
Eliminating financial barriers to real estate investment and harnessing automation to streamline processes are the two driving forces behind e-States. Stakeholders with an average age of 23 have positioned this startup on the cusp of a generational shift in real estate that dramatically reduces initial investments. And e-States relies on AI and the blockchain to bring efficiency to long-encumbered aspects of property ownership and management.
"We're breaking down that 1970s, 'Iron Fist' overhead, where it's just work-work-work-retire die," Matthews said. "There needs to be a more efficient balance, and I think technology is enabling that. What we're seeing at e-States is that we can produce equal or greater amounts of value, with less time contributed to whatever action that might be."
The e-States story began when Matthew's co-founder and cousin, Sean, flagged a problem while investing in commercial real estate. The minimum amount needed to join in was typically $35,000, which excluded many. In response, e-States doesn't just cater to the budget of Gen Z, but those in lower socioeconomic classes, by requiring a minimum investment of just $500.
"People 45 years and younger might not have tens of thousands of dollars saved up to buy one slice of commercial real estate," Matthew said. "But now, someone who is 20, 25-years-old can afford to invest in this massive capital market."
Buoyed by an app launch set for this summer and a robust start to crowdfunding through ChainRaise, e-States is catering to Gen Z's digital proficiency by utilizing blockchain technology and AI to tokenize assets and streamline administrative responsibilities. This digital approach eases the managerial workload and in the process encourages property owners to bring on additional investors.
With e-States, property owners and developers onboard assets to Web3. Following the legal process, tokens are distributed to investors through the e-States marketplace and capital is transferred to the real estate project. Tokens represent digital certificates of ownership and offer transparency, security, efficiency, automation and liquidity.
With its blockchain technology, e-States automates the collection of investor information; automates administrative duties such as sending out dividends to those investors; and enables secondary markets without attorneys or accountants.
Using AI, e-States can automate those aspects of property management related to tenant, asset, and maintenance information, as well as making predictions for when routine maintenance should occur. Also, leases can be consolidated in an online database. And e-States can optimize occupancy rates and lease renewal rates by analyzing data on tenant behavior and lease history.
"We're leveraging this smart technology to add value to the industry, optimizing investment opportunities by increasing efficiency and cutting costs, which leads to better returns," Matthew said.
e-States is also rewriting the retirement playbook, and reimagining it for Gen Z.
"Most people save up and contribute to a 401(k) or a Roth IRA," Matthew said. "But now, with commercial real estate, you can put your savings into a commercial property and let it grow in value the same way you might with the stock market, but get to the point where you can actually generate a passive income from your investments. That's something that other retirement strategies don't have.
"This encourages younger generations to invest their savings into something that makes their money work for them. People don't really want to work for their entire lives."
Visit e-states.com to learn more.
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