Tokenized Real Estate in the United States from $50

Presentation

RealT is an American platform that allows you to acquire fractions of buildings in the United States (mainly in Detroit and to a lesser extent Chicago and Cleveland), with the title deed materialized by a token on the blockchain. The company was founded by the Jacobson brothers who have over 20 years of experience in land management in Canada and the United States. They were also pioneers of blockchain technology in the early 2010s.

Opening of the account

Registration is done in a few clicks and your identity documents will be requested to validate the KYC. An Ethereum address (0x…) will be required to receive your property title tokens and collect your weekly rents in USDC. If you do not have a crypto wallet, we recommend MtPelerin’s BridgeWallet application which makes it easier to make incoming and outgoing transfers to your bank account. Remember to select the XDAI chain (Gnosis) rather than Ethereum when creating your RealT account, as transaction fees have exploded on Ethereum while they amount to less than a cent on XDAI.

Buy your first properties

New properties are posted regularly and you will be alerted 24 hours in advance. The address, photos and description of the properties are available on the platform. Tokens are usually sold around $50. Payment can be made by credit card or stable cryptocurrency (USDC or XDAI). Once the payment is validated, you will receive by email the contract to be signed online via Hello Sign, then your tokens will be delivered to your wallet. The first rents will be paid on the date provided for in the contract (usually in one to two weeks, sometimes more if major rehabilitation work is planned).

Proposed assets

RealT has already tokenized 200 properties since its launch in 2019, mainly detached houses at the beginning and now multifamily complex. The assets are located in class C neighborhoods but still with a robustness in the selection of tenants.

RealT’s expertise in select Detroit neighborhoods allows the company to have a waiting list of serious potential tenants. Rents for certain properties are also paid in full or in part by the federal government through housing assistance (Section 8). RealT was also able to tokenize a vacation residence in Florida near Disneyland and a high-end house rented to a company for its executive.

Token resale

Regarding the resale of tokens, the platform ensures liquidity up to $ 2000 / week and against a fee of 3%. It is also possible to sell your tokens over the counter via exchanges like LevinSwap or HoneySwap. If you want to acquire tokens via an exchange, however, you will already need to own the token of this property (whitelist).

Possible leverage

Recently, RealT launched in partnership with Aave, a collateralized borrowing platform (RMM). You can pledge the tokens of certain properties to instantly get a loan in XDAI up to 50% of the amount pledged and thus acquire other properties. The partial or total repayment of the principal is also done in a few clicks on the RMM platform.

Affiliation

To accelerate its development and expand its investor community, RealT remunerates its business providers via a subscription commission of 2% of the amounts invested by referred clients.

Disclaimers

This information does not constitute an offer to invest in any token, fund or other opportunity and is provided for informational purposes only. Performance results are shown net of all fees, costs and expenses associated with the token. If an investor chooses to redeem a token through RealT or on a secondary market, other processing fees may be assessed which are not factored into the returns presented. Past performance does not guarantee future results. Yields are calculated based on rents spread throughout the year and appreciation in the value of the underlying property. The appreciation in value is based on the difference between the purchase price and the annual revaluations of the property. Returns for individual investors may vary depending on the timing of their investments and redemptions. This site is operated by Cyril Soigneux, who is neither a registered broker nor an investment adviser. Cyril Soigneux does not provide investment advice, endorsement, analysis or recommendations regarding securities. Nothing on this site should be construed as an offer to sell, a solicitation of an offer to buy or a recommendation. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is suitable for you based on your personal investment objectives, financial situation and risk tolerance. You should consult legal professionals and licensed investment advisers for any legal, tax, insurance or investment advice. All securities listed here are offered by the relevant issuer of such securities and all information contained on this site is the responsibility of that issuer. Cyril Soigneux does not guarantee any investment performance, result or return of capital for any investment opportunity published on this site.