"Initial property offerings" allow anyone to add vacation rentals to their investment portfolios
Investors can now become part owner in the Jasmine, a five-bed, 4.5-bath property in Orlando
reAlpha, an AI-powered real estate technology and investment company with a goal to empower everyone with the ability to invest in the $1.2 trillion global short-term rental (STR) market, today announced the launch of its fractional ownership platform for STRs. The first vacation rental available on reAlpha’s new platform is the “Jasmine,” a five-bed, 4.5-bath property located in Orlando, Florida, America’s largest travel and tourism destination.
reAlpha’s innovative and easy-to-use fractional ownership platform, which can be accessed through the company’s web-based application, allows accredited and non-accredited investors to add well-located vacation rentals to their investment portfolios through “initial property offerings.” Investors also have the ability to track the performance of their investments through the platform. The launch of this platform represents an important step in reAlpha’s efforts to democratize the STR economy by empowering individuals to secure passive equity interests in high-quality STRs for a fraction of the total price of the property.
“Our goal from day one was to create best-in-class technology that would enable everyone to acquire fractionalized ownership in the growing short-term vacation rental asset class,” said Giri Devanur, CEO of reAlpha. “We took our time to test and continuously refine our model and technical capabilities to ensure we are able to consistently deliver a great user experience and present attractive investments. We are excited to finally make our initial property offerings available to the public. This platform opens up new opportunities for domestic and foreign investors alike, providing them with optionality as they seek to diversify their portfolios.”
Importantly, reAlpha thoroughly vets every fractional investment opportunity using its proprietary AI-driven algorithm, reAlphaBRAIN, to analyze large quantities of data to identify and rank properties that are most likely to deliver a return on investment that is on par or higher than the industry standard. After AI analysis is complete, reAlpha’s experienced real estate investment professionals conduct their own rigorous evaluation and adjust each property’s score, which trains the machine learning model. Only the properties with the highest scores are ultimately purchased by reAlpha and presented to potential investors.
The “Jasmine” property represents the type of fractionalized investment opportunity that reAlpha plans to continue making available to individuals. The 2,271-square-foot modern townhome is located in a gated community less than 10 miles away from Walt Disney World and Universal Studios, benefiting from strong leisure travel. The property features a second-floor game room, Disney and space adventure-inspired bedrooms for children, a heated pool, dedicated workspace and other amenities designed to make one’s vacation enjoyable and productive. Guests can also access the gated community’s different pools and workout and sports facilities.
Orlando is considered to be the theme park capital of the world and a top destination for vacation rentals. The World Travel & Tourism Council estimates that travel and tourism in Orlando had an economic contribution of over $31 billion in 2022, representing 20% of the city’s total GDP and recovering above 2019 levels by $2.7 billion. These figures make Orlando America’s largest travel and tourism destination. Based on AirDNA and its own analysis, reAlpha believes the Jasmine is capable of generating annual revenue of over $61,000.
About reAlpha
reAlpha is building a digital real estate investing platform that enables its members to simplify wealth creation opportunities through investments in vacation homes while striving to deliver exceptional guest experiences. reAlpha sources and scores properties from the wholesale market using a proprietary AI-driven algorithm called reAlphaBRAIN. It then predicts the viability of each property for the short-term rental market, as well as the projected long-term value. reAlpha’s business plan contemplates eventually allowing investors to buy equity in specific properties, providing opportunities for short-term passive income generation via Airbnb, as well as equity-driven capital appreciation. reAlpha is based in Dublin, Ohio. For more information, please visit www.realpha.com.
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