Presentation_to_eXp_Commercial_12.5.22-_Slides.pdf

Transcript

1. Presentation to eXp Commercial, 12/5/22 Increasing Liquidity in a Changing Market Olivier Manuel, Digital Asset Insight
2. “Financial liquidity is the ability to convert assets into cash quickly and without loss of value.” - Robert Kiyosaki © 2022 NOT INVESTMENT ADVICE - This presentation is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, fi nancial, or other advice. Nothing contained herein constitutes a solicitation, recommendation, endorsement, or offer by HII or any third party service provider to buy or sell any securities or other fi nancial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content on this presentation is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the presentation constitutes professional and/or fi nancial advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Rich Devices LLC dba Digital Asset Insight is not a fi duciary by virtue of any person’s use of or access to the Content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the presentation before making any decisions based on such information or other Content. In exchange for using the content, you agree not to hold Rich Devices LLC, its af fi liates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, tokens, and money market funds involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. A security’s or a fi rm’s past investment performance is not a guarantee or predictor of future investment performance.
3. © 2022 SOURCES: NAR, CoStar 2022 is a Challenging Environment for Commercial Real Estate 😒 🙂 😥 😅
4. © 2022 SOURCES: Fred Rising In fl ation 2022 2022 Liquidity is Getting Worse Rising Interest Rates
5. © 2022 SOURCES: Freddie Mac 2022 We Are Coming O ff A Period of Historically Low Interest Rates Mortgage Rates 1971 - Present
6. © 2022 SOURCES: CBRE CRE Transaction Volume Slowing Down
7. © 2022 SOURCES: CBRE, Digital Asset Insight 42% Drop in Mortgage Financings $58B $100B -42%
8. © 2022 SOURCES: DigitalAssetInsight, Real Estate Capital USA Risk that at Higher Rates Owners Can’t Re fi nance at Su ff i cient Size: eg $100M $60M @ 4.7% 20 YR $4.7M/yr Property Loan NOI $6M BEFORE AFTER $100M Property Capital Call $6M $50M @ 7% 20 YR $4.7M/yr 1.3x DSCR 1.3x DSCR $10M
9. © 2022 SOURCES: Moody’s, WealthManagement.com “The volume of performing non-defeased conduit loans that were scheduled to mature in the second half of 2022 or in 2023 totaled $29 billion… 14.6 percent of 2023 maturities would have trouble maintaining a 1.4x DSCR with an interest-only mortgage rate at a 6 percent rate. Re fi nancing risk would rise to more than one-third if the mortgage coupon were to increase to 8 percent.” At 6% rates $4B at risk At 8% rates $10 B at risk
10. © 2022 Conventional mortgage loans: These are the most common type of fi nancing for commercial real estate transactions. They are typically provided by banks and other fi nancial institutions, and are based on the creditworthiness of the borrower and the property's value and income potential. Bridge loans: These are short-term loans that are typically used to fi nance the purchase of a property until long-term fi nancing can be secured. They are often used when a property is being renovated or repositioned, and may be provided by private lenders or specialty fi nance companies. Mezzanine loans: These are a type of fi nancing that sits between equity and debt in the capital structure of a property. They are often used to provide additional fi nancing for a property when traditional debt fi nancing is not su ff i cient. Private equity fi nancing: This is a type of fi nancing that is provided by private investors, rather than traditional fi nancial institutions. It is often used to fi nance the acquisition or development of a property, and may be provided in the form of equity or debt fi nancing. Borrower Options
11. Crowdfunding © 2022 SOURCES: https://learn.gowercrowd.com/unleashed/
12. Tokenized Property © 2022 i.e., a Syndication Deal on the Blockchain Single Purpose LLC ASSET Fractionalized Ownership Interest
13. St. Regis Aspen - Security Token O ff ering © 2022 ISSUE: AspenCoin DESCRIPTION: Economic interest in St. Regis Aspen Through Shares of Aspen Digital ISSUER: Aspen Digital, Inc. COINS OFFERED: 18 million, Non-Voting Security Tokens OFFERING PRICE: $1 per AspenCoin PRIMARY OFFER: September 2018 SECONDARY LISTING: August 2020 on tZERO eg
14. St Regis Aspen AspenCoin Current Price: $1.18 Market Cap: $21.2M A Digital Asset,
15. Current Tokenized Property Deals © 2022 SPONSOR ISSUER PROPERTY FINANCIAL IMAGE The Ranches, Utah Target: 16.8 IRR 4.2% CoC THesis Residences, Florida 5,028,549 Convertible Op Partnership Units Honokea Surf Village, Hawaii Target: 23.1 IRR 24% CoC
16. Drop Us an Email to for Free Research Report Access research@DigitalAssetInsight.com mention: eXp Attendee
17. See you in the future! www.DigitalAssetInsight.com