Liquid by Gainsway

    Comparison · Like-for-like basis

    Tokenisation vs. bank financing

    Both structures are modelled on the same underlying portfolio — same market value, same rent and appreciation assumptions — so the only thing that changes is the capital structure: tokenised equity, which is non-recourse, versus conventional bank financing, which relies on secured debt with ongoing repayment obligations.

    No Quick-View state found — both sides initialised from the same default portfolio.

    Tokenisation

    Upfront Capital Raised

    $974,000

    Cash to owner after issuance fees

    Bank Financing

    Loan Proceeds

    $591,000

    Loan amount net of upfront fees

    Tokenisation

    Annual Retained Rent

    $0

    From the un-tokenised portion

    Bank Financing

    Net Annual Cash Flow

    $3,311

    Rent after operating costs, less loan payments

    Tokenisation outcome

    Non-recourse equity
    Structure
    Non-recourse equity
    Net Upfront Capital Raised
    $974,000
    Retained Equity
    $0
    Annual Retained Rent
    $0
    Effective Cost of Capital
    12.3%

    Because tokenisation is non-recourse, the owner monetises a portion of future economics rather than taking on a loan obligation. No debt service, no covenants, no lender recourse — the cost shows up as foregone future rent and appreciation.

    Bank financing outcome

    Secured loan
    Structure
    Secured debt (recourse)
    Loan Amount
    $600,000
    Owner Equity Required
    $400,000
    Upfront Loan Fees
    $9,000
    Net Loan Proceeds
    $591,000
    Annual Rent After Operating Costs
    $52,500
    Annual Loan Payments (Principal + Interest)
    $49,189
    Net Annual Cash Flow After Loan Payments
    $3,311
    Reference Debt Rate
    6.50%

    Illustrative bank comparison assumptions: 60% LTV, 25-year amortisation, 6.50% interest rate, 1.5% upfront fees, 25% operating costs on gross rent.

    Interpretation

    • Tokenisation is non-recourse, whereas bank financing introduces secured debt obligations and ongoing repayment pressure.
    • Tokenisation provides liquidity at a higher implied cost of capital than secured debt — but without covenants or lender recourse.
    • Bank financing typically preserves more long-run upside, but requires debt service and covenant tolerance through the cycle.
    • The right structure depends on desired liquidity, leverage tolerance, and how much control and downside exposure the owner wants to retain.