ZoneBitcoin EditorialThe platform RealT is a new tokenization platform that wants to simplify real estate investment. Thanks to blockchain technology, real estate investment is indeed greatly simplified. It is not for nothing that the real estate sector has always seen the incredible potential that blockchain represents.
Whether for establishing the land register from an administrative point of view, whether for purchase and resale, many blockchain projects have already proven effective even if it is still only the beginning. That said, the RealT company is more interested in the purchase of houses with the collection of rents, all of which is paid to the owners in tokens. Yes, we can buy a house with bitcoins now!
Basically, anyone looking to invest in real estate and who wants to do it quickly (and on a small budget) can now access it thanks to cryptos! RealT democratizes access to rental investment, and it deserves an article!
Let's see concretely and precisely what the contribution of society is RealT and how it can be interesting for all people who want to invest.
We wanted to present this platform to you because we are convinced that we are at the dawn of blockchain projects in real estate. We are fortunate to be able to participate in completely new projects. And, as you know, in crypto and elsewhere, first come is best served…
Origin and presentation of the RealT company
The company has been based in the USA since 2019. The CEO is Remy Jacobson who declared that his ultimate goal was to simplify the real estate market through tokenization. He first attacked the emblematic city of Detroit which suffered a real “shortage” (of its population, its businesses and factories, etc.).
It is only in recent years that the city has experienced a certain renaissance. And, projects like those of Jacobson contribute strongly to this by promoting real estate investment. After Detroit, the company became interested in other cities in the United States, as can be seen on the site.
Now you can invest in real estate in Florida, California, etc.
The team behind RealT is rather international. Hence the fact that the company plans to expand internationally and conquer the European markets very soon.
For the moment therefore, the real estate for sale is therefore exclusively located in the United States, in several different states. The first real estate available was located in Detroit, Michigan and gradually expanded to several other cities in the United States. The company is always announcing new properties. That said, investors do not necessarily have to be American citizens or residents to invest. It is accessible to everyone and again, it is made possible by blockchain.
The company was created in 2018 and already has a wide choice of properties under management and a growing number of clients. RealT wants to become one of the leaders in the tokenized real estate sector. In any case, it is one of the first platforms in the sector and the feedback is already very good!
What does RealT actually consist of?
Concretely, the platform aims in the future to be a marketplace for investors (those who want to invest in real estate).
To make it perhaps more understandable for the complete beginner in this field, we can say that RealT makes real estate available for purchase through company shares. Yes, it's a bit the same as SCPIs or SIICs, for example. SIICs are real estate investment companies which will manage the real estate assets of their shareholders. These are companies listed on the stock exchange (therefore subject to volatility). The difference here is that we are in the blockchain and you remain in control of your assets.
So far, nothing revolutionary you are going to tell me. This is normal, because until now, we have not (yet) talked about tokenization.
So, it is a company that will tokenize the ownership of real estate. You can therefore become the owner of a property by purchasing tokens and the entry ticket is very accessible. Typically, a token costs around $50. Thus, token holders do not share the good itself, but that of society, which passes on it. The company in question is an LLC. The holder receives an actual legal contract with signature and name. Everything meets current standards.
The tokens used are RealTokens which are ERC-20 which I imagine you already know. And, the big advantage is that we don't have to worry about the usual problems of rental investment (looking for a tenant, receiving rent, charges, etc.). The company offers its rental management services with house maintenance (we therefore receive the net rent, deducted from costs).
In fact, RealT relies on theEthereum to build this marketplace.
🏠 The platform is user-friendly and simple to use. This may be a detail for some, but the design and interface can make the difference. As for RealT, the platform is easy to use.
Properties are therefore managed with unique ERC-20 tokens. It is with this token that we can buy and resell goods. Likewise, it is under this token that we also perceive our Loyens.
What is asset tokenization?
But before going any further, we must ask ourselves the ultimate question: What is asset tokenization? In fact, it is a method that will convert assets into digital tokens on a blockchain. This is in fact what we call securitization (which we usually do in the classical world) which we will adapt in a computerized blockchain system; . Simply. In fact, this is where we understand that blockchain can be part of daily life and can enter all economic sectors. Everything can be tokenized, from a work of art to a car to a real estate residence (yes!).
In fact, thanks to tokenization, everything can be simplified: the purchase, resale or even use of the token in question.
Generally speaking, the asset tokenization process offers a myriad of benefits, such as greater transparency, more liquidity and accessibility, as well as faster and cheaper transactions. Do you better see how blockchain can change the world?
Tokens
Until now, we are used to what we call securitization (identification by paper document). It is this paper which will symbolize the property in question.
For example,
- Property : symbolized by a deed of ownership carried out with notaries
- Action: a paper certificate provided by brokers or banks
- Obligation : This is indeed a cash certificate which is designed and issued by banks
Remember then that a “ token » is simply a numerical symbol for a given property. On Ethereum, you therefore have a token in the same way that you have any certificate of ownership. The paper that we usually have (securitization) is in fact only a symbol even in real life. So, it's simply the computerized version in the blockchain that changes with tokenization. You see? Nothing too complicated, ultimately.
Why does real estate tokenization bring great benefit to the sector?
In fact, the real estate market really and deeply needs modernization. Today, all the players see its current limits. We see the administrative slowness of offices and the long process carried out by manual and human tasks. We are not immune to errors and mistakes made. Markets are compartmentalized and entry costs remain high.
We can also add that due to administrative complexity, the participation of foreign investors remains extremely complicated today. Unless you work with local lawyers, it is very difficult for individuals to invest in real estate outside their country.
All these obstacles mean that real estate investment still remains something complicated, complex and expensive.
As tokens can be purchased anywhere and very easily, this already makes acquisition very simple and barrier-free, for example.
The tokenization of real estate would broadly simplify the process of acquisition, resale and collection of rents as well.
Thus, by allowing investors to be able to purchase property by purchasing tokens, this opens the door to many investors as real estate owners can finally benefit from the liquid value of their assets.
Here are the advantages of tokenization in general
Concretely, tokens include the rights and responsibilities incumbent on the holder. The record of ownership is immutable and incorruptible, as long as it is recorded in the blockchain. No one can erase this property even if it is not recorded in a government registry.
Transparency
This therefore ensures that we have transparency. We can see who (at what address) such token belongs to, when it has been resold or repurchased by another person).
As it is a token, all transactions are recorded irreversibly and incorruptibly in the blockchain. We can in fact verify each transaction via Etherscan for example. I remember that Etherscan is a BlockExplorer for Ethereum. In fact, BlockExplorer is a search engine in which one can easily search for transactions that are carried out on the Ethereum blockchain.
Increased liquidity
For the field of real estate and investment in general, this is clearly a major advantage. Tokenization will provide more liquidity. So, whether purchasing and especially reselling, it will be easier for investors. Even if real estate meets the law of supply and demand, it is still necessary that the two can find a space to exchange. This is precisely what RealT allows.
Internationalization
Here again, tokenization opens up the fields of possibilities and destroys the notion of geographical borders. We can access assets that are impossible in real life. For example, with RealT, you can invest in real estate in the United States, from home. Without blockchain, remember that investing in real estate in the USA is a real obstacle course.
Accessibility
Of course, that's what's most obvious, perhaps. The fact that with tokens we can split assets makes it much more accessible (financially). Buying a property as a whole would be much more expensive! There, you can enter with the purchase of a token for around $50 dollars! It is in this sense that it is accessible, to all budgets.
How to invest in real estate on RealT?
Now that you have a better understanding of the platform, it's time to know how to invest, right?
So the first thing is to register on the site. The site is available in French, which is not insignificant when it comes to investing your money, we agree.
So here are the steps to follow (and you will see how easy it is).
1/ Once registered, you must verify your identity. Finally, it only takes a few minutes and normally you should be used to the KYC protocol, normally. So, there, you are asked to send a selfie and the Scan of your identity card or passport. Anyone can register, so from that point of view, it's accessible to everyone.
1. Verify your identity
The first step is to send a Scan of your ID or passport, take a selfie and choose the type of wallet you prefer. You can choose the wallet integrated into the platform if you are a novice. You can also opt for an Ethereum wallet type Dappradar if you want to benefit from more services of the DeFi Thereafter.
2. Now you can buy real estate
This is the part you've been waiting for! So, you should know that there is approximately one new property added per week and that we notify you 24 hours in advance by email of a new release. Act quickly because homes are selling like hot cakes, literally! You can buy tokens by traditional bank card or by paying with your cryptocurrencies. You choose.
3. Sign the contract digitally
Once you have placed your order, you will receive an email which will contain your contract to be signed digitally via the HelloSign system. It is a legal document that justifies and certifies your possession of your title.
4. Collect your rent and receive your tokens!
Once you sign the contract, your tokens will be delivered to your Ethereum address that you added in step 1!
You receive your rent every day at your address.
So! Now it's done! You are the owner of a company that owns real estate in the USA and you can continue to receive your pensions!
What are the risks of investing in real estate with RealT?
In fact, when it comes to traditional real estate that is done in the United States, the rules are extremely strict. You generally need to be an accredited investor and have a certain amount of capital. Purchase and sales contracts are therefore carried out within a well-defined legal framework.
There, with regard to RealT and all real estate investments that are made via blockchain, it is different. It remains a private investment with fewer regulations. For example, there is no bank guarantee or insurance of this kind. Most certainly, these are elements which will be taken into account subsequently, of course. But, for the moment, we remain in the world of cryptocurrencies and legally, their status is still unclear from a legal point of view.
Additionally, RealT and all companies like it are still at the very beginning of this new industry. We must therefore understand that we do not fundamentally know what is going on with this new market, at this sector level.
In addition, like any investment, you must be aware that you risk losing all or part of your investments. This is the rule to know for all types of investment as you know.
Conclusion on RealT
We really like this project in general. Even beyond the fact that it is financially interesting and that it brings crypto passive income, the initiative is to be welcomed.
More and more, we are getting off the beaten track and if yesterday we could only buy bitcoins, today, you can even buy houses with your bitcoins... This progression is crazy...
We can clearly see that blockchain is entering our lives ever more deeply. Above all, we see to what extent this brings real efficiency and that we can only benefit from it.
Realt FAQ
What to do with these Real tokens?
Well, lots of things! You can use your RealTokens on applications like Uniswap for example to diversify the possibilities.
Can you resell your shares and real estate?
Yes, directly on the platform, you can both buy and sell your tokens.
Besides, you can resell them on Uniswap if you are familiar with this platform.
Will there be real estate in Europe?
Yes, there will (probably) be an opening to real estate countries in Europe subsequently.
What are the alternatives or competitors to RealT?
There are more and more companies in this sector and the trend is increasing. For example, we can cite the MaxProperty project For example. It's more about crowdfunding in this case but other companies are following RealT's lead. There are also many real estate projects linked to metaverses as is the case withUpland. We can finally cite the first official sale of a house in the form of an NFT...
Please note: Once again, articles published on zonebitcoin do not constitute investment advice. Always do your personal research before investing. Any investment carries a risk of capital loss.
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