The e-States startup is disrupting the commercial real estate industry in a very big way.
“Our big focus for property owners has been automation that streamlines the industry,” said e-States CEO Matthew Schneider.
“People involved in commercial real estate view the industry as antiquated, complex, and expensive. Our software is inexpensive, you can cut out a lot of the middlemen, you can synchronize data, raise money with a click of a button, and also manage your property in the same place. A lot of the back office work, a lot of the stress is now out of the picture.”
Set to launch this month, the e-States online platform is designed to democratize commercial real estate and unlock it for the masses while strengthening communities. Now, the startup is raising a Seed Round through the crowdfunding site ChainRaise; it is attracting international attention; and the e-States team is considering applying its technology to small business investment.
The e-States concept began with Matthew’s co-founder, his cousin Sean, a board member who has invested in commercial real estate for nearly a decade. Sean flagged a problem with investing—the minimum investment was $35,000, a commonplace figure for most real estate deals.
But that figure can exclude many, and put in place a financial barrier that can typically be overcome only by the wealthy.
This is where the e-States team saw a big opportunity.
Requiring a minimum $500 investment, e-States uses blockchain technology and AI to tokenize assets and streamline administrative responsibilities. The end result is an easing of the managerial workload, thus encouraging property owners to bring on additional investors.
e-States establishes groundwork for property owners and developers to 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 represents digital certificates of ownership and offer transparency, security, efficiency, automation and liquidity.
With its blockchain technology, e-States can automate the collection of investor information; automate administrative duties such as sending out dividends to those investors; and enable secondary markets without attorneys and accountants.
“We can offload those responsibilities to the blockchain,” Matthew said.
Looking more towards AI, e-States can manage properties as it relates to tenant, asset and maintenance information, as well as making predictions by analyzing data.
How can this technology maintain a property further?
“We can integrate software to automate maintenance—predict when it should occur based on when it has occurred in the past, and have that arranged ahead of time, instead of just waiting for something to break,” Matthew said. “You can consolidate leases in an online database. Many property managers still fail to do this.”
e-States could also optimize occupancy rates and lease renewal rates by analyzing data on tenant behavior, preferences, and lease history.
The e-States technology allows for digital communications with investors, some of whom might never have been met in person.
“That’s a change,” Matthew said.
He added, “You can complete compliance measures such as KYC, accreditation, social security number collection, almost instantaneously, with the click of a button, and you don’t actually have to be in charge of any of it—because we have API’s that do that.”
Improvements also include offering flexibility to investors in both check size and investment duration without any collateral impact; and rendering unnecessary extra attorneys or accountants, whose roles are performed by the e-States platform.
e-States can also:
- Communicate with shareholders regarding those changes occurring in the finances of a property that might affect their return.
- Analyze fundraising data, market data and macro-and-micro economic data.
- Analyze tenant vacancy data, which might be affecting cash flow in a property, and in turn, the amount of a monthly return for investors.
All of this, Matthew said, renders useless the need to “hire someone for $80,000 a year who’s in charge of looking over everything, and then producing marketing materials or communication efforts and writing a newsletter every month to investors. We can streamline that and automate it with AI or a language model that writes a newsletter for property owners.”
He continued, “There are little niche areas where we want people to just be able to click buttons to perform tasks that are normally performed by a person, instantaneously, free of charge, or much less than you would normally pay, and with fewer errors.”
Visit e-states.com to learn more.