Education | RealT

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.

Download Whitepaper

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?
Because all your RealT digital assets are stored on the Ethereum blockchain, you can view them at any time just by going to https://etherscan.io/.

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 help@realt.co.

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

Use Pro.Coinbase.com or SendWyre.com to swap stablecoins for USD, and send the USD to your bank account or debit card. 

Earn Interest

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, RealTokens?

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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RealT Affiliate Program Terms and Conditions

AFFILIATE AGREEMENT

PLEASE READ THE ENTIRE AGREEMENT.

YOU MAY PRINT THIS PAGE FOR YOUR RECORDS.

THIS IS A LEGAL AGREEMENT BETWEEN YOU AND REALTOKEN LLC (REALT).

BY SUBMITTING THE ONLINE APPLICATION YOU ARE AGREEING THAT YOU HAVE READ AND UNDERSTAND THE TERMS AND CONDITIONS OF THIS AGREEMENT AND THAT YOU AGREE TO BE LEGALLY RESPONSIBLE FOR EACH AND EVERY TERM AND CONDITION.

  1. Overview

This Agreement contains the complete terms and conditions that apply to you becoming an affiliate in RealT’s Affiliate Program. The purpose of this Agreement is to allow HTML linking between the RealT website and your website or your other social networking channels or posts (together, your “Sites”). Please note that throughout this Agreement, “we,” “us,” and “our” refer to RealT, and “you,” “your,” and “yours” refer to the affiliate. Applicants who are accepted into the RealT Affiliate Program will each receive a unique referral hyperlink (a “Link”) that they can post on their Sites and share with potential referrals to earn commissions and other rewards.  

  1. Eligibility

The RealT Affiliate Program is open only to any “non-U.S. person” located outside of the United States who has purchased at least one RealToken of any Series of RealToken LLC.  For purposes of this Agreement, a “non-U.S. person” is any natural person who is not a resident of, or located in, the United States, and partnership or corporation that is not organized or incorporated under the laws of, or located in, the United States, and any trust of which all of the trustees are not residents of, or located in, the United States.  

  1. Enrollment and Affiliate Obligations

3.1. To begin the enrollment process, you will apply electronically on the RealT.co website by reviewing  and agreeing to the terms and conditions of this Agreement. The fact that we auto-approve applications does not imply that we may not re-evaluate your application at a later time. We may reject your application at our sole discretion. We may cancel this Agreement with you if we determine that your Sites are unsuitable for our Affiliate Program, including if they:

3.1.1. Promote sexually explicit materials.

3.1.2. Promote violence.

3.1.3. Promote discrimination based on race, sex, religion, nationality, disability, sexual orientation, or age.

3.1.4. Promote illegal activities.

3.1.5. Incorporate any materials which infringe or assist others to infringe on any copyright, trademark or other intellectual property rights or to violate the law.

3.1.6. Include “ReatT,” “ReatToken” or variations or misspellings thereof in your website domain name.

3.1.7. Are otherwise in any way unlawful, harmful, threatening, defamatory, obscene, harassing, or racially, ethnically or otherwise objectionable to us in our sole discretion.

3.1.8. Contain software downloads that potentially enable diversions of commission from other affiliates in our program.

3.1.9. You may not create or design your Sites, explicitly or implied in a manner which resembles our website nor design your Sites in a manner which leads customers to believe you are RealT or any other affiliated business.

3.2. RealT reserves the right, at any time, to review your placement and approve the use of your Link and require that you change the placement or use to comply with the guidelines provided to you.

3.3. The maintenance and the updating of your Sites will be your responsibility. We may monitor your Sites as we feel necessary to make sure that your are operating in compliance with this Agreement.

3.4. It is entirely your responsibility to follow all applicable intellectual property and other laws that pertain to your Sites. You must have express permission to use any person’s copyrighted material, whether it be a writing, an image, or any other copyrightable work. We will not be responsible (and you will be solely responsible) if you use another person’s copyrighted material or other intellectual property in violation of the law or any third party rights.

  1. RealT Rights and Obligations

4.1. We have the right to monitor your Sites at any time to determine if you are following the terms and conditions of this Agreement. We may notify you of any changes to your Sites that we feel should be made, or to make sure that your links to our website are appropriate and to notify further you of any changes that we feel should be made. If you do not make the changes to your Sites that we feel are necessary, we reserve the right to terminate your participation in the RealT Affiliate Program.

4.2. RealT reserves the right to terminate this Agreement and your participation in the RealT Affiliate Program immediately and without notice to you should you commit fraud in your use of the RealT Affiliate Program or should you abuse this program in any way. If such fraud or abuse is detected, RealT shall not be liable to you for any commissions for such fraudulent sales.

4.3. This Agreement will begin upon your accepting its terms and providing your electronic signature on our RealT.co website, and will continue unless terminated hereunder.

  1. Termination

Either you or we may end this Agreement AT ANY TIME, with or without cause, by giving the other party written notice. Written notice can be in the form of mail, email or fax. In addition, this Agreement will terminate immediately upon any breach of this Agreement by you.

  1. Modification

We may modify any of the terms and conditions in this Agreement at any time at our sole discretion. In such event, you will be notified by email. Modifications may include, but are not limited to, changes in the payment procedures and RealT’s Affiliate Program rules. If any modification is unacceptable to you, your only option is to end this Agreement. Your continued participation in RealT’s Affiliate Program following the posting of the change notice or new Agreement on our Sites will indicate your agreement to the changes.

  1. Commissions

7.1  RealT will pay a referral fee (“Commission”) for each customer referred to the RealT.co website by an affiliate through the affiliate’s Link who completes a purchase on the RealT.co website of one or more RealTokens of a Series of RealToken LLC.  The standard Commission will consist of a cash payment to the affiliate equal to two percent (2%) of the dollar amount of RealTokens purchased by the referred customer. RealT reserves the right to change the Commission rate at any time (which change shall not alter the effective rate for any RealTokens already purchased by a referred customer) and may offer from time to time, as and when posted on the RealT.co website, special promotions including, but not limited to, increased Commission rates, competitions awarding cash prizes to referral leaders, VIP access to RealT events and early notice of new listings on the RealT.co website.   

  1. Promotion Restrictions

8.1. You are free to promote your own Sites, but naturally any promotion that mentions RealT could be perceived by the public or the press as a joint effort. You should know that certain forms of advertising are always prohibited by RealT. For example, advertising commonly referred to as “spamming” is unacceptable to us and could cause damage to our name. Other generally prohibited forms of advertising include the use of unsolicited commercial email (UCE), postings to non-commercial newsgroups and cross-posting to multiple newsgroups at once. In addition, you may not advertise in any way that effectively conceals or misrepresents your identity, your domain name, or your return email address. You may use mailings to customers to promote RealT so long as the recipient is already a customer or subscriber of your services or Sites, and recipients have the option to remove themselves from future mailings. Also, you may post to newsgroups to promote RealT so long as the news group specifically welcomes commercial messages. At all times, you must clearly represent yourself and your Sites as independent from RealT. If it comes to our attention that you are spamming, we will consider that cause for immediate termination of this Agreement and your participation in the RealT Affiliate Program. Any pending balances owed to you will not be paid if your account is terminated due to such unacceptable advertising or solicitation.

8.2. Affiliate shall not transmit any so-called “interstitials,” “Parasiteware™,” “Parasitic Marketing,” “Shopping Assistance Application,” “Toolbar Installations and/or Add-ons,” “Shopping Wallets” or “deceptive pop-ups and/or pop-unders” to consumers from the time the consumer clicks on a qualifying link until such time as the consumer has fully exited RealT’s site (i.e., no page from our site or any RealT’s content or branding is visible on the end-user’s screen). As used herein a. “Parasiteware™” and “Parasitic Marketing” shall mean an application that (a) through accidental or direct intent causes the overwriting of affiliate and non-affiliate commission tracking cookies through any other means than a customer initiated click on a qualifying link on a web page or email; (b) intercepts searches to redirect traffic through an installed software, thereby causing, pop ups, commission tracking cookies to be put in place or other commission tracking cookies to be overwritten where a user would under normal circumstances have arrived at the same destination through the results given by the search (search engines being, but not limited to, Google, MSN, Yahoo, Overture, AltaVista, Hotbot and similar search or directory engines); (c) set commission tracking cookies through loading of RealT’s site in IFrames, hidden links and automatic pop ups that open RealT’s site; (d) targets text on websites, other than those websites 100% owned by the application owner, for the purpose of contextual marketing; (e) removes, replaces or blocks the visibility of Affiliate banners with any other banners, other than those that are on websites 100% owned by the owner of the application.

  1. Grant of Licenses

9.1. We grant to you a non-exclusive, non-transferable, revocable right to (i) access our site through HTML links solely in accordance with the terms of this Agreement and (ii) solely in connection with such links, to use our logos, trade names, trademarks, and similar identifying material (collectively, the “Licensed Materials”) that we provide to you or authorize for such purpose. You are only entitled to use the Licensed Materials to the extent that you are a member in good standing of RealT’s Affiliate Program. You agree that all uses of the Licensed Materials will be on behalf of RealT and the good will associated therewith will inure to the sole benefit of RealT.

9.2. Each party agrees not to use the other’s proprietary materials in any manner that is disparaging, misleading, obscene or that otherwise portrays the party in a negative light. Each party reserves all of its respective rights in the proprietary materials covered by this license. Other than the license granted in this Agreement, each party retains all right, title, and interest to its respective rights and no right, title, or interest is transferred to the other.

  1. Disclaimer

REALT MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES REGARDING REALT SERVICE AND WEBSITE OR THE PRODUCTS OR SERVICES PROVIDED THEREIN, ANY IMPLIED WARRANTIES OF MARKETABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT ARE EXPRESSLY DISCLAIMED AND EXCLUDED. IN ADDITION, WE MAKE NO REPRESENTATION THAT THE OPERATION OF OUR SITE WILL BE UNINTERRUPTED OR ERROR FREE, AND WE WILL NOT BE LIABLE FOR THE CONSEQUENCES OF ANY INTERRUPTIONS OR ERRORS.

  1. Representations and Warranties

You represent and warrant that:

11.1. This Agreement has been duly and validly executed and delivered by you and constitutes your legal, valid, and binding obligation, enforceable against you in accordance with its terms;

11.2. You have the full right, power, and authority to enter into and be bound by the terms and conditions of this Agreement and to perform your obligations under this Agreement, without the approval or consent of any other party;

11.3. You are not a resident of the United States or otherwise a “U.S. Person,” as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933.

11.4. You hereby certify that you are in full observance of, and not in violation of, the laws of the jurisdiction in which you reside and of each of the jurisdictions into which you may send a Link in connection with your participation in the RealT Affiliate Program, including (i) the legal requirements within your jurisdiction and in any jurisdiction where you intend to send a Link to solicit purchasers of RealTokens for the offer and sale of securities and deemed security tokens, (ii) any foreign exchange restrictions applicable to such offers and sales, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the receipt of commission fees under this Agreement.

11.5.  You are not required to obtain any licenses or registrations under applicable law, including the rules and regulations of any self-regulatory organization with competent jurisdiction, to participate in the RealT Affiliate Program as contemplated hereunder, and you will promptly obtain such licenses and registrations if you determine that any of them are necessary in order to act as an affiliate and receive commissions hereunder.

11.6. You have sufficient right, title, and interest in and to the rights granted to us in this Agreement.

11.7. You acknowledge that RealT is entering into this Agreement in reliance on the representations, warranties, and agreements contained herein.  You shall give prompt notice to RealT of the occurrence of any event that may affect the accuracy of any representation, warranty, or agreement; provided that such notice shall not relieve you from your obligations hereunder or prevent any party from seeking an appropriate remedy.

  1. Limitations of Liability

WE WILL NOT BE LIABLE TO YOU WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, TORT, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, LOSS OF REVENUE OR GOODWILL OR ANTICIPATED PROFITS OR LOST BUSINESS), EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHER, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IN NO EVENT SHALL REALT’S CUMULATIVE LIABILITY TO YOU ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER BASED IN CONTRACT, NEGLIGENCE, STRICT LIABILITY, TORT OR OTHER LEGAL OR EQUITABLE THEORY, EXCEED THE TOTAL COMMISSION FEES PAID TO YOU UNDER THIS AGREEMENT.

  1. Indemnification

You hereby agree to indemnify and hold harmless RealT, and its subsidiaries and affiliates, and their directors, officers, employees, agents, shareholders, partners, members, and other owners, against any and all claims, actions, demands, liabilities, losses, damages, judgments, settlements, costs, and expenses (including reasonable attorneys’ fees) (any or all of the foregoing hereinafter referred to as “Losses”) insofar as such Losses (or actions in respect thereof) arise out of or are based on (i) any misrepresentation of a representation or warranty or breach of a covenant and agreement made by you herein, or (ii) any claim related to your Sites, including, without limitation, content therein not attributable to us.

  1. Confidentiality

All confidential information, including, but not limited to, any business, technical, financial, and customer information, disclosed by one party to the other during negotiation or the effective term of this Agreement which is marked “Confidential,” will remain the sole property of the disclosing party, and each party will keep in confidence and not use or disclose such proprietary information of the other party without express written permission of the disclosing party.

  1. Data Security

You agree to comply with all applicable data protection laws regarding the transmission of data exported to or from the United States or the country in which you reside, including without limitation, the General Data Protection Regulation 2016/679 of European Parliament and of the Council of 27 April 2016 (the “GDPR”). You agree to promptly assist RealT in complying with any data subject rights request under the GDPR that RealT may receive from any individuals referred to RealT by you. You further agree to promptly assist RealT in complying with any duties to cooperate with supervisory authorities under the GDPR.

  1. Miscellaneous

16.1. You agree that you are an independent contractor, and nothing in this Agreement will create any partnership, joint venture, agency, franchise, sales representative, or employment relationship between you and RealT. You will have no authority to make or accept any offers or representations on our behalf. You will not make any statement, whether on Your Site or any other of Your Site or otherwise, that reasonably would contradict anything in this Section.

16.2. Neither party may assign its rights or obligations under this Agreement to any party, except to a party who obtains all or substantially all of the business or assets of a third party.

16.3. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Florida without regard to the conflicts of laws and principles thereof.

16.4. You may not amend or waive any provision of this Agreement unless in writing and signed by both parties.

16.5. This Agreement represents the entire agreement between us and you, and shall supersede all prior agreements and communications of the parties, oral or written.

16.6. The headings and titles contained in this Agreement are included for convenience only, and shall not limit or otherwise affect the terms of this Agreement.

16.7. If any provision of this Agreement is held to be invalid or unenforceable, that provision shall be eliminated or limited to the minimum extent necessary such that the intent of the parties is effectuated, and the remainder of this agreement shall have full force and effect.