RealT, the platform that reinvents real estate thanks to blockchain and DeFi – Global Happenings
Real estate is a sector that attracts many investors but also presents constraints and limits for the general public. How to make real estate more accessible, more liquid, more transparent and more diversified? This is the challenge taken up by RealT, a company founded by 2 French-speaking Canadians in 2019 and which offers to “tokenize” real estate and sell it in the form of tokens on the blockchain.
Rental investment within everyone’s reach
Real estate tokenization consists of converting real estate into a digital token, which represents a fraction of the property and gives the right to receive rental income proportional to the share held. Tokenization relies on the blockchain, which makes it possible to create, exchange and secure digital assets in a decentralized and transparent way.
For the time being, US law does not allow selling shares of real estate directly in the form of a token. Each property put up for sale therefore has its own company with its own shareholders. The tokens thus correspond to the shares of these companies and intrinsically have real estate value. RealT appoints at the head of each company an internal manager of ownership which can be changed if the majority of the shareholders (ie the holders of tokens) wish it.
To facilitate access to the general public, RealT has cut the shares so that they are accessible to all. The investment starts from just 50 US dollars. This is the case, for example, with the latest 35-unit building in Detroit offered by RealT, with an announced yield of around 9.80% per year.
Every month, shareholders receive dividends – in proportion to their investment. Dividends correspond to rents paid in US dollars by tenants from which management fees, potential unpaid bills or claims have been deducted. RealT provides its users with an insurance system to cover these risks – which are typical of the real estate market.
Jean-Marc Jacobson, the co-founder of the company reminds all its users: “there is no investment without risk”. The risks to its activity correspond to those of the traditional real estate market and rental management: unpaid bills, works, management problems, vacancies, liquidity, etc. RealT’s current model avoids going through the bank loan box, which reduces the risk associated with leverage.
Launching tomorrow, May 18, at 7 PM UTC, we’re introducing 35 new units at 10410 Cadieux in #Detroit.
—RealT (@RealTPlatform) May 17, 2023
The RealToken as collateral
With its active community, RealT has decided to open up to decentralized finance. In collaboration with the Gnosis Chain (Ethereum sidechain) and its AAVE protocol, the company enables the community to use decentralized finance integrations and RealToken collateralization directly on its RMM platform.
The collateralisation of these digital tokens offers a double advantage to holders: in addition to being able to pledge their RealToken on the platform in exchange for a return in stablecoin (USDC), they continue to receive passive income directly linked to the associated real estate investments. to the realToken.
Disclaimer : any investment involves risk and can generate a profit as well as a loss. Investors should consider their financial situation and consult their financial adviser(s) to understand the risks involved before embarking on an investment. Furthermore, past performance is no indication or guarantee of future performance, and no representations are made regarding future performance.
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