Investing In Real Estate With RealT And Blockchain

Real estate investment attracts many investors, but it imposes significant constraints. The required capital is often high, administrative procedures are complex, and reselling a property takes time. Blockchain is transforming this market by facilitating access to real estate through tokenization. RealT offers an innovative solution that allows acquiring shares of real estate properties in the form of tokens. This approach simplifies investing, offers more liquidity, and guarantees passive income in stablecoins. This article details how RealT works, real estate tokenization, its advantages over traditional purchases, and the security guarantees offered to investors.

The RealT Investment Model

Real estate investment becomes more accessible thanks to RealT. This platform uses blockchain to enable fractional ownership of properties, removing financial and administrative barriers. Investors can thus acquire property shares and receive rental income in a simplified way.

What is RealT?

RealT is a platform specialized in tokenized real estate. Founded in 2019, it allows investors to buy shares of real estate properties in the form of tokens called RealTokens. Each RealToken represents a fraction of a property located in the United States.

Investors receive weekly rental income in stablecoins (DAI, USDC). This model avoids management constraints and guarantees automated payments. RealT thus democratizes access to real estate by removing traditional intermediaries.

How does investing in RealT work?

Investing in RealT follows a simple and quick process. Investors must first create an account and complete a KYC verification. This step ensures compliance with current regulations.

Once registration is validated, the investor selects a property and buys RealTokens via cryptocurrencies like ETH or stablecoins. Some fiat payments are also possible.

Rents are paid weekly directly to investors’ crypto wallets. Smart contracts automate these payments, ensuring transparency and speed. Unlike traditional real estate, no bank intermediary is needed.

If needed, the investor can resell their tokens on a secondary market like YAM. This flexibility improves the liquidity of real estate investment, often considered a low-liquidity asset.

Advantages of RealT for investors

RealT offers several advantages over traditional real estate investment. First of all, accessibility is a major asset. Buying RealTokens is possible from $50, compared to several thousand euros for a traditional property.

Rental income is paid automatically to ensure regular passive gains. Investors do not have to manage rentals or deal with possible unpaid rents because the platform handles all procedures.

The absence of paperwork and administrative constraints simplifies the investment experience. Unlike traditional property purchase, no notary or long procedures are necessary.

Finally, RealT offers a unique feature: using RealTokens as collateral to borrow stablecoins on the RMM platform. This option allows investors to increase their capital without selling their assets to optimize their financial strategy.

The principle of real estate tokenization

Real estate tokenization transforms real estate investing into a more accessible and liquid model. Thanks to blockchain, it becomes possible to acquire fractions of properties in the form of tokens, simplifying the buying and asset management processes.

How tokenization works

Tokenization consists of dividing a real estate property into digital assets called tokens. Each token represents a fraction of the property and grants its holder financial rights, including receiving rental income.

These tokens are recorded on the Ethereum and Gnosis Chain blockchains. This decentralized storage guarantees immutability and transparency of transactions. Once recorded, tokens cannot be forged or modified.

Thanks to smart contracts, asset management becomes fully automated. Investors receive their rents without third-party intervention, eliminating human errors and payment delays.

The impact of tokenization on real estate investment

Tokenization profoundly changes the real estate market by removing traditional intermediaries such as banks and notaries. Investors can buy and resell fractions of properties without going through complex and costly procedures.

Transactions become faster and more secure. The use of smart contracts allows automatic execution of purchases and rent distribution. Each transaction is transparently recorded on the blockchain to ensure total traceability.

Real estate investment also becomes more flexible. Investors can diversify their portfolio by buying fractions of several properties instead of concentrating their capital on a single purchase. If needed, they can resell their tokens on a secondary market without waiting for a buyer to acquire the entire property.

Tokenization also opens access to international real estate. An investor located in Europe or Asia can easily buy shares of a property in the United States without administrative constraints.

Tokenization and real estate financing

Blockchain improves the liquidity of the real estate market by facilitating token exchange. Unlike traditional real estate, where reselling a property takes several months, investors can transfer their tokens in a few clicks.

Tokens can also be used as collateral to borrow stablecoins on decentralized finance (DeFi) platforms. This feature allows investors to maximize their capital without selling their assets.

Real estate thus becomes a more flexible asset accessible to a global audience. Tokenization removes many entry barriers and democratizes real estate investing for both small and large investors.

Differences with a Traditional Real Estate Purchase

Traditional real estate investment involves significant administrative and financial constraints. Tokenization of assets via RealT simplifies these steps and provides unprecedented flexibility to investors.

The Purchase Process: Digitization vs Administrative

Purchasing traditional real estate requires several administrative procedures. An investor must obtain financing, work with a notary, sign contracts, and adhere to sometimes lengthy processing times. This procedure can take several weeks or even months.

With RealT, real estate purchasing becomes instantaneous thanks to blockchain. Investors acquire fractions of properties directly in token form, without intermediaries. The entire process is digitized and secured by smart contracts, ensuring fast and error-free execution.

Holding real estate tokens grants the same rights as a traditional purchase. Investors receive rental income and can sell their assets at any time. However, unlike a traditional real estate purchase, they do not have to handle the administrative formalities related to ownership.

Liquidity and Great Flexibility

Traditional real estate is a relatively illiquid asset. When an owner wishes to sell a property, they must find a buyer, negotiate the price, and finalize the transaction through a notary. This process often takes several months and can be affected by market conditions.

With RealT, investors enjoy much greater flexibility. Real estate tokens can be quickly resold on a secondary market (YAM). This option provides access to liquidity without having to wait for the sale of an entire property.

Tokenization also enables easier diversification. An investor can buy fractions of multiple real estate assets located in different cities or regions. This strategy reduces risks by spreading capital across several assets rather than just one.

Management and Profitability

A traditional real estate purchase involves time-consuming rental management. The owner must find tenants, manage rents, pay charges, and declare income. In the event of unpaid rents or vacancy, returns can be affected.

With RealT, administrative management is fully handled by the platform. Investors do not need to deal with rental or tax procedures. The RealT team manages tenant selection, property maintenance, and tax payments.

Rents are paid weekly in stablecoins (DAI, USDC). This approach guarantees regular income and protection against market volatility. Unlike rents received in fiat currency, payments in stablecoins offer investors immediate financial stability.

Security and Legal Framework of RealT

Real estate investment via blockchain raises questions about security and legal compliance. RealT implements multiple mechanisms to protect investors and ensure a solid regulatory framework.

Regulations and Legal Compliance

RealT complies with current laws to guarantee a secure investment. The platform requires identity verification (KYC) for all investors before token purchase. This procedure ensures compliance with financial regulations and combats money laundering.

Each property is held by a specific limited liability company (LLC). This structure protects investors by separating assets and avoiding legal risks related to property management.

RealT follows rules established by U.S. legislation regarding real estate investment. Tokenization complies with current regulations, ensuring total transparency and optimal legal security.

Transaction and Blockchain Security

The use of blockchain enhances transaction security. Smart contracts automate payments and property transfers, reducing risks of error and fraud. Once recorded on the Ethereum and Gnosis Chain blockchains, transactions become immutable and verifiable by all.

Each investor stores their real estate tokens in a personal digital wallet. RealT recommends using decentralized wallets like Metamask, ensuring full control over assets. This approach eliminates the need for a trusted third party and enhances protection against hacking.

Investor Protection and Risk Management

RealT adopts several measures to minimize risks related to real estate investment. Rent payments are made in stablecoins (DAI, USDC) to avoid the impact of traditional crypto volatility. This stability guarantees regular income for investors.

In case of a real estate market downturn, each investor retains a share of the physical property. Unlike purely digital assets, tokenization is backed by tangible assets, which limits risks of complete loss.

Diversification of properties available on RealT allows investors to spread their capital across multiple assets. This strategy limits exposure to a single market or city.

By combining a regulatory framework, technological security and investor protection, RealT ensures reliable and optimized real estate investment for the digital world.

Real estate investment evolves with blockchain and tokenization. RealT simplifies access to this market by removing financial and administrative barriers. Thanks to the RealT platform, investors can purchase fractions of real estate assets with reduced capital. Tokenization enables smooth management, without intermediaries, while ensuring full transparency. Unlike traditional purchases, RealT offers better liquidity and passive income in stablecoins. Blockchain guarantees transaction security and traceability.

For those seeking a stable and diversified investment, RealT represents a modern, reliable, and efficient alternative. This approach revolutionizes real estate and opens new opportunities to investors worldwide.

La Rédaction C.

The Cointribune editorial team unites its voices to address topics related to cryptocurrencies, investment, the metaverse, and NFTs, while striving to answer your questions as best as possible.