According to Statista, there were 5.64 million homes sold in the United States in 2020, up from the 5.34 million sold in 2019. This year as the US rebounds from the coronavirus pandemic the number of homes forecast to be sold is 6.49 million.
Property ownership is big business and only getting bigger. However, getting onto and progressing up the property ladder is not always easy. According to HSH Associates, you need to earn at least $60,770.08 a year to be able to afford a new home. Meanwhile, for renters, they have faced more than a decade’s worth of steady rent increases.
However, the last couple of years have seen a quiet but solid evolution in the world of real estate. Slowly, but surely, the impact of blockchain, crypto, and the tokenization of real estate is becoming a growing force.
Real estate tokenization has developed as one of the most here-and-now use cases of blockchain technology for large asset and property managers. In 2019. French asset manager Mata Capital tokenized more than €350M worth of real estate assets. The real estate is denominated by digital tokens on the Ethereum blockchain, but still using paper deeds for ownership.
Easy Investment into Real Estate
Now, with RealT, investing in tokenized real estate is being taken to a new level. Investors from anywhere in the world can get into the US real estate market through fully compliant, fractional, tokenized ownership powered by Ethereum blockchain.
RealT is an internet-only platform that enables easy investment from anywhere around the world into US real estate. Single tokens cost a minimum of $50 – $150 and because all RealT properties are fractionalizable, you can invest any amount that fits your situation.
Ownership of each property is through a limited number of representative tokens. Dependent upon token share, token owners can collect revenue from rent, and vote on property decisions. Of course, token owners benefit from any rises in home prices should the property be sold.
The properties themselves are curated real estate opportunities, chosen by an experienced team of real estate professionals. At the moment, it is just residential properties for sale, but it is understood commercial properties are in the pipeline.
By operating on blockchain technology. unnecessary delays like bank transfers are a thing of past, making it possible that rent can be collected weekly and promptly.
Another advantage is the speed. RealT has slashed the real estate purchase time from a minimum of 30 days and to just 30 minutes. By also taking out the third party’s, time, cost and hassle are taken care of.
What makes RealT stand out amongst other things, is the ownership. RealT does not tokenize the real estate asset which by law is currently impossible. However, RealT tokenizes interests in a Limited Liability Company (LLC) that is the sole owner and the sole deed owner of the real estate asset acquired. Each asset will be owned by one single LLC which is what is tokenized.
In a famously liquid industry, tokenization and digitalization only open up access to the real estate world to even more people, making it even more liquid. With home buying growing at an exponential rate, and the ownership barriers smashed down by the likes of RealT, anyone can start building a safe, transparent, and yielding property portfolio.
Anthony Young
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