RealT (RealToken Inc.) web-based platform for tokenizing property ownership in the United States enables investors around the world to earn dividends from real estate on a fractional basis for the first time. RealT, which runs on the Ethereum blockchain and is integrated with Uniswap Exchange, serves retail investors from more than 40 countries outside the U.S., including Germany, Hong Kong, Singapore, and Argentina. At the end of 2019, RealT also opened its doors to US accredited investors.
Until now, investing in real estate and earning passive income has been seen as a luxury of the wealthy, something reserved for people like Sam Zell. That’s because it hasn’t been possible to invest in a fraction of a real estate property. In order to earn passive income on real estate, an investor would have to buy an entire property, barring purchasing REIT or other basket of properties that typically have high fees. Tokenization, on the other hand, allows real estate to be fractionalized into small shares that retail investors can afford, all while streamlining the investment process, offering liquidity and cutting through the lengthy process and administrative requirements associated with the traditional real estate market. By tokenizing real estate shares, RealT democratizes the industry.
RealT’s blockchain-powered platform affords investors the legal rights and protections associated with the traditional real estate market. Ownership of each property listed on RealT’s platform is distributed across a finite number of tokens, specific to each property, called generally “RealTokens.” Owners collect revenue from rent and, based on their number of tokens, vote on property decisions. RealT distributes the month’s rent into normalized daily payments, allowing property owners to immediately see a return on their investment. Properties listed on RealT’s platform are managed by a property management company, which sources tenants, collects rent, and manages repairs, so the diverse group of investors doesn’t have to.
Tenants pay rent in USD, which is then converted to DAI, a stablecoin pegged to the U.S. dollar, and sent directly to the Ethereum wallet owned by the investor. Through RealT, the money transfers are instant — no need to wait 30 days to receive a bank transfer. Rental income is normalized across the month, minus expenses. Fractional ownership democratizes access to real estate investment, distributing and minimizing risk, complications, and labor involved with owning property.
“Tokenization creates a reality in which everyone becomes the landlord of the future,” says Remy Jacobson, CEO & Co-Founder of RealT. “With RealT, investors of all kinds can take part in the real estate market on a fully compliant platform that offers all the advantages of the traditional real estate market.”
Founded in May 2019 by brothers Remy and Jean-Marc Jacobson, RealT is a company that democratizes the real estate industry through tokenization. The Florida-based company enables investors around the world to participate in the U.S. real estate market through fractional, tokenized ownership on a fully compliant platform powered by the Ethereum blockchain.