Liquidity is the ability to convert an asset to cash quickly. Real estate investments are generally illiquid in nature as they are not traded on public stock exchanges and cannot be easily sold or traded. The investors’ money is locked up for a specified hold period or until the Sponsor sells the asset. A hold period is the anticipated time investors will be involved in the investment until it is re-sold. This period can range from less than 6 months to greater than 5 years.
The illiquid nature of real estate investments can often be a deterrent for Accredited Investors that seek access to cash in the near term.
Acquire Real Estate is the only crowd investing platform to offer the Acquire Exchange, a tool where investors can put their equity interests up for re-sale, affording investors possible liquidity and creating a fully functioning secondary market for crowd-invested real estate investments.
Federal law generally requires that privately placed investments not be purchased with a view to a distribution, which means the investment must be held for at least one year. However after the one-year period, or in special circumstances such as a sudden financial hardship, there is no market that enables the investor liquidity. The Acquire Exchange addresses this by providing the opportunity for liquidity among the “Acquire Crowd,” or Acquire registered users. The liquidity, of course, is dependent on the successful sale of the investment through our online auction.
If an investor requires liquidity, they can use the Acquire Exchange to put all or part of an Acquire investment up for sale to the Acquire Crowd through a live, blind auction. The investor specifies the terms, including the start and end times of the auction, and provides certain information concerning the investment. The Acquire Crowd does the rest by bidding or not bidding based on the terms proposed. Thus, an investor's liquidity is entirely dependent on the successful sale through the auction process.
Acquire’s in-house technology automates the entire Exchange process by creating a seamless coordination of the online transfer process for both the buyer and seller. This technology replaces what was previously a manual, time-intensive transaction.
Acquire receives no compensation during these transactions and does not buy, sell, value, advise or recommend any investment offered for sale on the Acquire Exchange. The entire transaction takes place between the seller and the Acquire Crowd, using the Acquire Exchange as a tool to facilitate the process.