Our RealT team often refers to blockchain real estate as Real Estate 3.0. The internet age ushered in Real Estate 2.0 by placing real estate information around the world at our fingertips, so it might seem more reasonable to call tokenized real estate a “2.1 upgrade.” But RealT’s fractional real estate isn’t a modest upgrade. It’s completely revolutionizing real estate as legacy investors once knew it. Along the way, we’re bringing new investors to real estate, enabling a community who never dreamed of investing in property, to become the landlords of the future.
This isn’t hyperbole, either. The single greatest impact of the real estate blockchain is its democratizing effect on a class of asset traditionally possessing a giant moat around it. In short, the legacy approach of buying real estate as an investment is often primarily available to those who already rich. RealT hasn’t just lowered the drawbridge across the moat, it’s removed the impediment to real estate investing altogether by harnessing the power of the blockchain.
Blockchain can also mitigate typical real estate investing concerns. For instance, accredited investors often have substantial assets but are unprepared to devote hundreds of thousands or even millions of dollars into the purchase of a single property. This is understandable. They fear losing their capital’s liquidity. The good news? Investors can now purchase RealT tokens in multiple properties, instantly creating a diverse real estate portfolio that also preserves liquidity.
Legacy real estate investors (Real Estate 1.0 and 2.0) are astonished by the speed of crypto real estate when compared to the glacial pace of buying property the old-fashioned way. Outside the United States, almost anyone is free to begin their decentralized real estate investment career with a single $50 token in a RealT property. And as U.S. laws change, domestic investors are bound to soon enjoy the same freedom to begin their own real estate investing career.
The next challenge of legacy real estate investing is the massive risk the investor undertakes. Buying a property is much like placing a massive bet on its marketability. It’s therefore easy for novice investors to make a tragic mistake that leaves their investment permanently underwater. The RealT tokenized asset approach, on the other hand, allows investors, especially newbies to real estate, to leverage our team’s history of investment success.
To this end, our team possess decades of real estate experience. We pride ourselves on selecting the best investment opportunities in diverse markets. What’s more, we also own tokens—right along with the RealT investment community!
Returning to the subject of countering risk, even if an investor finds the right investment opportunity; they stand to lose their investment to foreclosure if their loan-to-value (LTV) is too high. RealT can help here, too. We offer the ideal passive investment opportunity because none of our properties have loans against them. Instead, they are purchased outright, completely avoiding concerns about LTV and foreclosure.
Of course, RealT didn’t invent the concept of fractional ownership in the real estate market. One popular alternative in the legacy market is the wide assortment of Real Estate Investment Trusts (REITs). REITs own income-producing real estate and share a portion of the income with their investors. REITs were established by Congress in 1960 to give all investors, especially small investors, access to income-producing real estate. Since then, the U.S. REIT approach has flourished and served as the model for around 40 countries around the world. REITs help build local communities through new development.
Real estate on the blockchain has just as many advantages over REITs as it does over traditional property ownership. For one thing, REITs are notorious for their high fees and commissions. Like ATM charges, these hurt smaller investors worse than big players. Second, RealT’s investors can quickly sell their tokens if they need access to capital, generally receiving their money in about seven days. By contrast, A REIT could take multiple weeks or even months to cash out an investment.
Whether RealT tokenized real estate is compared to the outright purchase of a property or investing in a REIT, Real Estate 3.0 comes out a . In fact, RealT is a true win-win-win for the investor. They can invest any amount they like, starting with around $50 per token, they become owners earning rent within a week of their investment date, and they can sell tokens back for quick access to capital if necessary.
There is actually a fourth win built into crypto real estate—the ability to generate further diversification through the automatic investment of rent payments. These are all major advantages for Real Estate 3.0 investors, but there is a further set of advantages to tokenized assets involving transparency.
RealT tokens exist on the blockchain, just like popular cryptocurrencies like Bitcoin and Ethereum. Therefore, our tokens enjoy all the benefits the blockchain provides. Tokenized real estate is transparent through blockchain entries. This means you’ll never have to take our team’s word on its own investments.
The blockchain also provides a high level of security, removing any question of your token ownership. Constantly increasing in efficiency and speed, it makes RealT token purchases and sales even more convenient. In short, the blockchain is the perfect medium to base fractional real estate ownership.
No matter what type of investor you are and/or level of experience you possess with cryptocurrencies and real estate, RealT tokens hold tremendous potential to diversify your portfolio and generate passive income through weekly rent payments. Set up your account today to join the Real Estate 3.0 revolution and achieve true diversification.