CalTier Realty, LLC (CalTier), the Fintech platform helping the average investor diversify their portfolio into cash-flowing commercial real estate, has formed a new partnership with Alto Solutions, Inc. (Alto) in order to enable investments from a self-directed IRA account into commercial real estate.
As mentioned in a release shared with CI, this new partnership will enable clients to invest in CalTier’s real estate opportunities for “as little as $500” using Alto’s self-directed IRA platform. Available to accredited and non-accredited investors, CalTier teamed up with Alto to “increase accessibility to this asset class, which is traditionally not easy for individuals, through a new funding source.”
Matt Belcher, Co-founder and CEO of CalTier, said they are looking forward to working with Alto to offer their investors with a new way to join the CalTier fund.
Belcher added that they established CalTier because they were “personally experiencing a lot of friction and huge barriers to entry when trying to diversify our investments into commercial grade cash-flowing real estate.”
Belcher further noted:
“It seemed there was an invisible door that only a select few could open. With our new partnership with Alto, we’re opening the door further. Customers can invest into our multi-family fund and benefit from the tax advantages self-directed IRAs can provide, all with an automated, seamless solution.”
Alto is a next-gen self-directed IRA platform that aims to make it easier for people to access and invest in alternative assets “using their retirement funds.” Through the integration with CalTier, investors may now use Alto’s affordable, intuitive platform to “unlock its professionally managed institutional-grade multi-family investments using their self-directed IRA.” The CalTier fund will then “identify, negotiate, invest, and manage multi-family assets.”
Tara Fung, CRO at Alto, remarked:
“We are always looking for creative partners and solutions for our clients, and we are thrilled to welcome CalTier to our platform. Through our new partnership with CalTier, we are able to offer customers even more options to invest in unique asset classes such as real estate to diversify and grow their retirement portfolios.”
As reported in the Freddie Mac Multifamily Midyear Outlook, it is “projected that in 2021 alone there will be a record of between $385–$410 billion of multi-family origination volume.”
Using a self-directed IRA to invest in the commercial real estate sector may provide various benefits, like the ability to “control where your money is invested, flexibility to access asset class options beyond the stock market, and significant tax advantages.”
As noted in the update, CalTier Realty, LLC is a Fintech offering the typical investor the opportunity to “invest into cash-flowing real estate that is traditionally extremely difficult to participate in and often reserved for a select group of accredited investors only.”
Their first Regulation A fund is currently live and “accepting investors and they are working on launching several new funds to offer diverse options to their user base in both the U.S. and internationally.”