How Bluchip Combines the Best of Commercial Real Estate, Stocks, and Bonds



September 1, 2022

Investors who want to safely diversify their portfolios can now harness a new option—one that’s intended to generate income and growth by combining the best of CRE, stocks, and bonds, while simultaneously mitigating the traditional drawbacks of each. With the Bluchip CRE platform, everyday investors can: 

  • Own a piece of premier commercial property leased and backed by a brand they trust (like a CRE and stock investor) 
  • Gain entry through accessible investment amounts (similar to most stocks)
  • Benefit from long-term, steady-income-producing investments (like a bond investor) 
  • Receive the tax advantages of direct ownership (like a CRE investor) 

Here, we take a closer look at how Bluchip is creating an innovative investment option, and disrupting CRE, stocks, and bonds. 

A quick look at the big three in 2022 

Amidst recent turmoil in the capital markets, there’s a bright spot: commercial real  estate. Price appreciation has surpassed pre-pandemic rates, thanks to  outperformance across multiple sectors. According to a 2022 CBRE study, retail  investors are eagerly embracing real estate affiliated with fast food restaurants, banks, drugstores, and other single-tenant retail stores, with trading volumes exceeding long-term quarterly averages.  

Stocks and bonds have proven less predictable. This year, amidst rising inflation, interest rate adjustments, and global sociopolitical crises, investors are experiencing substantial losses. Though stocks and bonds remain popular and comprise the lion’s share of individual portfolios, investors are growing increasingly cautious and have begun looking for other options. 

A new way of accessing CRE

Commercial real estate is one of the most treasured asset classes—with good reason. This investment realm involves tangible assets—including office buildings, retail stores, and hotels—that maintain intrinsic value in the face of inflation and other economic fluctuations. CRE investors enjoy consistent cash flow, diversification, and appreciation potential, among other advantages. 

As attractive as it sounds, CRE investing is often gated, open to those with the deepest pockets. Most funds target high-net-worth, institutional, and qualified investors—a mere fraction of the top 1%. Many CRE properties—those affiliated with national restaurant chains, for example—touch the lives of millions of Americans, punctuating daily commutes, road trips, and special occasions. Even so, prohibitive investment minimums and strict income requirements have shut out the vast majority of individual investors. 

Bluchip enables fractionalized ownership of properties leased to national corporate tenants. With lower investment minimums, Bluchip allows everyday investors to own a piece of high-quality commercial real estate—leased by the restaurants, coffee shops, and retail stores they love most. Bluchip’s AI-powered platform seamlessly  evaluates potential investments against rigorous criteria, including location, brand stability, financial strength, and past performance. The result? Exceptional  properties with reliable passive income streams and growth potential.  

The intersection of CRE, stock, and bond benefits 

Bluchip investors enjoy similar tax advantages as conventional CRE investors. Unlike real estate investment trust (REIT) shareholders, who buy into a pool of pre-selected properties, Bluchip investors own stakes in the individual properties they choose to invest in. That means they receive those properties’ tax benefits on their distributions.  

As with traditional CRE investments, Bluchip properties offer wealth-building & wealth-preservation potential. As a long-term passive hold with tax and depreciation advantages, CRE is a proven path to generational wealth. Bluchip investments allow investors of all backgrounds to plan for their own future—and provide for their children and grandchildren along the way. 

Regulation ensures secure, trustworthy investments 

Stock and bond markets are regulated by a number of federal agencies and corporations, including the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). These authorities protect  investors against fraud, require disclosure of all investment risks, and inspire trust in the markets. 

Bluchip investments are regulated by FINRA, protected by the Federal Deposit Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC). Bluchip also works with a variety of federally regulated compliance partners, such as registered broker dealers, fund admins, escrow agents and custodians. As with the rules governing public stock and bond exchanges, Bluchip’s comprehensive federal compliance helps ensure that investors access thoroughly vetted investment opportunities.  

Like many stock and bond brokers, Bluchip implements stringent internal security measures to further protect investors. Equipped with state-of-the-art data  protection technology, Bluchip safeguards sensitive investor information and internal files. Moreover, distributions are kept in highly secure custodian accounts until they’re paid out or repurposed as additional investments. 

Risk mitigation balances portfolios and optimizes returns 

Bluchip focuses exclusively on national corporate tenants. These properties, known as triple net leases, are widely recognized as reliable investments that generate steady cash flow. CRE, especially that leased by corporate tenants in  premier locations, have historically posed very little—and often the lowest—investment risk. 

Investors can buy, hold, and receive monthly distributions, earning hassle-free passive income. Younger or more adventurous investors might consider Bluchip an optimal choice for balancing out portfolios containing higher-risk assets, such  as stocks, crypto, and NFTs. Retired investors may turn to Bluchip to lower their portfolios’ risk exposure. 

The best of three investment classes awaits 

Stocks, bonds, and CRE offer significant investment advantages, from  diversification potential to tax incentives. That said, they come with their own unique downsides and hurdles. Bluchip serves up the most appealing features of  each class—all while negating their respective drawbacks. Why wait? The power of three is now in your hands.