Regarding real estate investing, LEX Markets makes it possible for investors to diversify into commercial real estate holdings with the potential to create wealth and earn passive income – $250 at a time.
Keep reading to find out more.
Overview
LEX is a marketplace for commercial real estate that enables investors to purchase commercial real estate structure shares, generate income from them, and then sell them without limitations. LEX uses an exclusive trading platform to link investors and owners. Commercial real estate building owners can generate money while maintaining control by using the market to sell shares in their assets.
The procedure is simple: LEX collaborates with asset owners to establish new publicly marketable shares. The secondary market and an initial offering are options for investors to purchase those shares.
Investors can make money when the property owner pays distributions, and these shares have the tax advantages of real estate ownership. No other online investment platform provides publicly tradable shares, access to retail investors, and the option to buy shares in specific real estate commercial structures like LEX does.
Lack of secondary trading, accreditation requirements, and/or availability of only shared investment vehicles like real estate investment trusts (REITs) are some of the limitations of other direct real estate investment platforms. Only LEX offers securities in specific real estate properties, publicly tradable shares, and access to non-accredited investors.
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Things to Know About LEX Markets
| You make money on | Fees | Min Investment | Payout frequency | Term of investment | Target Return | Liquidity | Open to | Mobile Application |
| Value + Dividends | 1% | $250 | Quarterly | Zero | Varied | Moderate | All Investors | iOS |
How Does This Platform Work?
The Jumpstart Our Business Startups Act of 2012 permits non-accredited investors to purchase the securities LEX issues. The Reg A+ provision of the act lowered the accounting and disclosure requirements for some public offerings, enabling purchases by investors with net worths under $1 million. Issuers are permitted to raise up to $50 million under the provision.
LEX performs your due diligence and provides information on the investment.
The decision to buy or sell the property is yours, just like a stock. According to co-founder Drew Sterrett, property owners will choose the price for each asset they wish to sell on LEX’s platform.
As an improviser, LEX will hire independent appraisers to establish how much equity each $100 unit represents. Investors can place their initial order for these units and then trade them after property owners pay to list their deals on the platform.
The Partnership between LEX and NASDAQ
LEX announced on June 25, 2020, that it had partnered with Nasdaq to power the trading platform. Nasdaq’s Marketplace Services Platform will power the alternative trading platform from LEX Markets.
With tried-and-true technology in place, LEX will efficiently and quickly open up opportunities for matching between institutional investors and retail and property owners that were previously unavailable. Through open mechanisms of price formation that inspire trust among participants and investors, the organization will also be able to show its honesty and reliability.
Top Benefits of LAX Markets
- Invest as an unaccredited investor in individual commercial properties
- Trade shares following an initial offering using the LEX Alternative Trading System (ATS).
How to Make Money on This Platform
LEX investors receive quarterly distributions when the fundamental real estate property generates income. The LEX platform displays the anticipated rate of distribution for each property. The other market factors’ performance or the underpinning property may cause changes in the market value of LEX shares, which can be traded on the LEX ATS.
How LEX Generates Revenue
Based on a trailing 3-month or 90-day market value, LEX charges a quarterly fee of 0.25percent (1 percent annual rate). The cost is subtracted from the quarterly distribution payments made by the issuer. LEX Markets does not impose commissions on trades.
Is LAX Markets Safe?
Investment bankers for LEX have carefully examined each asset on the platform to determine whether it can consistently produce quarterly distributions to shareholders.
The fact that quarterly distributions will be executed at all or at the projected rate is not guaranteed. The LEX ATS (meaning Alternative Trading System), driven by NASDAQ, makes secondary trading possible. Provisions of the Securities Act that permit unrestrained secondary online trading are used when issuing shares (Reg A).
The only provider of investment services is LEX Markets limited liability company (LLC), a Member of FINRA/SIPC.
Frequently Asked Questions
1. Who Is Permitted To Invest In Lax Markets?
Anyone at least 18 years old, a citizen of the United States of America, or a permanent resident may use LEX. International investors are currently unable to make purchases on the market. However, LEX stated that it would eventually enable foreign accounts.
2. Where Is The Main Office Of LEX Markets?
New York City in the United States is where LEX Markets is situated.
3. When Did LEX Markets’ Most Recent Round Of Funding End?
On January 28, 2022, LEX Markets completed its final funding round from a Series A round.
4. How Much Money Has LEX Markets So Far Raised?
$27.5M has been raised by LEX Markets.
Other Real Estate Investment Sites
The Bottom Line
LEX Markets is one of the most interesting opportunities we’ve seen in any market—stocks, cryptocurrencies, bonds, whatever. This non-accredited investor level of accessibility is ground-breaking and unprecedented. Additionally, LEX manages several problems real estate private equity faces when trying to offload individual stakes by ensuring liquidity through a secondary market.
