Learn about RealT
New to blockchains, cryptocurrency, and tokenization? It’s easier than it seems! We’re here to help you learn about the new, alternative financial system that blockchains have to offer. Here you can learn how to manage owning property on the blockchain!
Introduction to RealT
For those just learning about RealT, read this short introduction to the system. This provides a high-level overview of the RealT system, and is a great way to get started.
The whitepaper describes the RealT system. It provides an explanation for the need of tokenized real estate, as well as the specifics of how RealT has been built.
Private Placement Memorandums
Each property has its own offering documentation, which is accessible here.
Click the button to download the document.
Frequently Asked Questions
What is Tokenized Real Estate?
Tokenized real estate is the creation of the digital version of paper deeds. While the internet has changed many things, it did not change how properties and assets are still managed by a paper-based system. The tokenization of a property defines ownership of a property by a digital, internet-native asset, rather than a piece of paper. Tokenization is common in the world of blockchains and digital assets, as they allow real-world assets, such as real estate, to be represented on the internet by an internet token, or a symbol of ownership.
What are the benefits of tokenized real estate?
RealT sells real estate property through the internet, and thus, any real estate can be purchased from anywhere in the world (with some exceptions). Additionally, RealT properties are fractionalizable, so that anyone can invest any amount that fits their needs. Additionally, RealT has reduced the time to purchase real estate from a minimum of 30 days and numerous steps with third parties, to just 30 minutes and on your phone or computer.
How are properties chosen for inventory?
Our team of highly experienced real estate investors carefully curate real estate opportunities in the US for RealT’s customers to invest in. Properties will range from large, apartment buildings in popular areas, to low-cost single-family homes with high rental rates. View our inventory to get started!
What problems does tokenization solve?
Now, real estate investments can be made affordable to anyone, regardless of their net-worth. Real estate is also a notoriously illiquid industry. By turning real estate into digital tokens, real estate can be accessed by far larger numbers of potential buyers, both due to fractionalization of the tokens, and the potential reach of internet-based markets.
Is the RealT platform only for residential property? Are there plans to include commercial property?
RealT has chosen residential family properties to start, due to their attractiveness for international investors. However, RealT works equally well for all types of property! RealT is currently working on adding commercial properties, along with hotels and office complexes, in order to generate a more diverse set of offerings to our customers. Additionally, RealT has the opportunity to include other types of real estate, and non-real estate assets. Loans, mortgages, and high-value art are all potential assets able to be tokenized through RealT.
Will token prices always remain the same? What happens in the case of capital appreciation/depreciation?
Part of RealT’s commitment to full transparency is a yearly appraisal of the RealT properties found on the website. An independent, professional appraiser will re-evaluate each property, and this information will be made available to all property owners and potential purchasers. This information will help guide the investment decisions and secondary market for RealTokens, as well as the prices found on the RealT Website. We intend to generate sufficient liquidity on the RealT marketplace to have secondary marketplace property valuations, aided by constant information updates about the local real estate market in which the property lies.
Who holds the deed to the house?
RealT does not tokenize the physical asset. It is currently impossible to directly tokenized real estate. RealT tokenizes shares in a Limited Liability Company (LLC) that is the sole owner of the real estate property. Each property is to owned by one single LLC. Tokens therefore represent shares in the LLC and this tokenized ownership is formalized in the subscription agreement, making it irrevocable. The deed to each property is held by the LLC in which RealTokens represent ownership of. Purchasing the RealTokens for an LLC that owns one single deed of a property is simply purchasing your share of the deed.
What are the risks associated for a retail investor of these tokens? In what situation would an investor lose all of their investments?
While RealT gives no guarantees, it is highly unlikely that the value of a property will reach zero. Each property on RealT is insured to its full value. Even if the property burns down to the ground, the insurance covers the losses and therefore token holders are protected. In the unfortunate event of catastrophic damage, the insurance funds will be converted to a USD stablecoin, and sent to the RealToken holders. In the event of an economic downturn, or a drop in the housing market, rent-producing residential properties have historically been more resistant to devaluation, making them an enticing asset to own during tough times. We have chosen to begin with residential properties precisely for this reason.
Will tokens be sold in the U.S. as well?
Yes. We expect to offer our tokens to U.S. citizens and residents during 2020.
Any plans to tokenize property assets in other countries?
We are very interested in tokenizing property assets in all countries where the system is supported, but we will only do so once we can absolutely confirm the irrevocable legal ownership of the property by RealToken holders.
How do I view my RealTokens and rent payments?
If you’re not familiar with Etherscan, don’t worry—you can read our short walk-through here: How to view your transactions.
If you have any issues accessing your information, please contact us at firstname.lastname@example.org.
What can I do with my rent payment stablecoins (e.g. Dai)?
Rental payments paid out to RealT property owners comes in the form of stablecoins (e.g. Dai), a cryptocurrency that is pegged to $1.00. There are many things you can do with these.
Send to your bank account
There are platforms on Ethereum that you can earn interest on your stablecoin. The most common platforms are DyDx or Compound Finance. By depositing your stablecoin to these platforms, you can earn interest based off the fees collected by borrowers. Interest rates change, according to market forces. You can view current rates at LoanScan. It is recommended that you use MetaMask as your wallet for interacting with these platforms.
These platforms are not risk free. Contract-risk (the risk of bugs) and backdoor risks are always possible. Users should do their own research about each platform.
RealT is the name of the project; a hybrid of the word Realty: real estate property, and Token, the from that the realty comes in.
RealTokens are the purchasable asset; the digital deed to the property. RealTokens are fractionalized shares of ownership over the real estate property associated with the RealTokens. Each property on RealT has its own set of unique RealTokens associated with it.
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