Giri Devanur, the CEO of reAlpha, a “real estate investment company that is looking to democratize the $1.2 trillion short-term rental market and create accessible investing opportunities for Main Street,” joined the 7investing podcast to talk about his company and the real estate market in general. Devanur has started multiple companies and taken his most recent to NASDAQ. Still, he’s breaking all of his previous growth records with reAlpha.
reAlpha uses Registration A or “Reg A” financing to allow regular people (i.e. non-accredited investors) to own fractional shares or rental properties. It’s a new model that the company has been pioneering at a time when the real estate market has been incredibly volatile.
At its heart, reAlpha is both a real estate investment company and a technology play. The company uses technology to identify the properties it plans to buy and to uncover opportunities in this fast-changing market. Devanur sat down with Dan Kline to discuss the genesis of reAlpha, his own long history of success, and empowering more people to invest in short-term rental real estate.
“In 2015 when the JOBSAct was passed by Congress, what the writers of that regulation did was to allow unaccredited investors to get into fast-growing companies. In the good old days, if you wanted to invest, let’s say, in Airbnb itself, if you wanted to get in when they were an early-stage company, you had no choice. Either you had to be a VC or have connections. What Regulation A (Reg A+) has done is it has removed that barrier. You can enter into, you know, like early stage, highly promising companies at the ground floor level, not at the IPO, which is the 100th-floor level.”
Watch the interview here: youtube.com/watch?v=gvO632AYOBo&t=658s
First published on 7Investing here: https://7investing.com/articles/democratizing-the-short-term-rental-market-with-realpha-ceo-giri-devanur/