OpenLTV is a new platform that aims to give investors across the world access to passive income, backed by real estate located in the U.S. The platform has announced an upcoming Security Token Offering (STO), scheduled to commence in the summer of 2019.
Real estate has long been providing consistent returns for private equity, hedge funds and family offices. Now, OpenLTV enables global, frictionless access to debt collateralized by real estate in the U.S. Following a recent partnership with Paxos, investors will have the opportunity to invest with either fiat or cryptocurrency. One can invest fiat or crypto in shares of real estate debt and predicted returns are notably between 8-12% annually and also get monthly interest in stablecoin.
OpenLTV is available in USA to accredited investors under Reg D 506 (b) , and to investors in other countries under Reg S and applicable local regulations. OpenLTV will reportedly issue its securities on the Ethereum blockchain in the form of a security token and will enable secondary trading on a yet undisclosed marketplace.
As risk protection measures, OpenLTV takes great care to vet each originator and loan on their marketplace, and requires some “skin in the game” from the originator. Majorly, the Loan To Value is 75% or less, and Loan To Cost is 90% or less. As per the website, OpenLTV will launch at some point this summer.