Tokenized Real Estate: Why Choose RealT?

Real estate investment attracts many investors due to its stability and potential for appreciation. However, access to this market remains restrictive because of high costs and complex administrative procedures. Real estate tokenization simplifies these obstacles by making the purchase and management of properties more accessible. RealT allows investors to acquire fractions of properties through blockchain technology. This approach offers increased liquidity and passive income in stablecoins. This article explores how RealT works, the steps to purchase real estate tokens, as well as profitability and concrete examples of successful investments.

How RealT Works and Its Advantages

Real estate investment has long been reserved for investors with substantial capital. Blockchain changes this reality by making fractional property purchases possible. RealT offers an innovative approach that facilitates access to this market by allowing investments starting from just a few dozen dollars.

What is RealT?

RealT is a platform specialized in fractional real estate investment via blockchain. Founded in 2019 by Jean-Marc and Rémy Jacobson, it aims to democratize access to real estate ownership. By dividing each property into multiple digital shares called RealTokens, RealT allows investors to acquire a fraction of ownership and earn rental income.

Each RealToken represents a share of a specific property and grants the same rights as traditional real estate investment. The rents are paid out in stablecoins such as DAI or USDC, ensuring regular and secure payments. RealT handles the rental and administrative management to allow investors to focus solely on the profitability of their investments.

How Does Real Estate Tokenization Work on RealT?

Real estate tokenization involves dividing a property into digital tokens recorded on the Ethereum and Gnosis Chain blockchains. Each token represents a fraction of ownership, providing access to rental income and any potential capital gains on the property.

The purchase of RealTokens is simplified, without involving banks, notaries, or financial intermediaries. Investors can also resell their tokens on the secondary market through the YAM platform, offering better liquidity compared to traditional real estate.

Blockchain ensures complete transparency, with each transaction immutably recorded. Investors can verify their asset details in real-time, including rental cash flows and market developments. This approach eliminates fraud risks and improves investment management.

Advantages of RealT

RealT presents several strengths that make it an attractive alternative to traditional real estate investments:

• Financial accessibility: investment starts from $50, making real estate accessible to a wide audience. This flexibility allows small investors to diversify their portfolios;
• Increased liquidity: unlike classic real estate where selling a property takes time, RealTokens can be quickly traded on a secondary market;
• Security and transparency: the blockchain records all transactions, ensuring perfect traceability. Investors have full control over their assets without risk of manipulation;
• Regular passive income: rents are distributed weekly in stablecoins, offering a reliable source of income without banking delays.

With these benefits, RealT establishes itself as a solution that simplifies and modernizes real estate investment while preserving the advantages of this stable market.

How to Buy Real Estate Tokens on RealT?

Investing in real estate via RealT is a quick and simplified process thanks to blockchain. Buying real estate tokens requires no bank or intermediary, but follows several essential steps to ensure the security and transparency of transactions.

Registration and Identity Verification

Investment on RealT starts with creating an account on the platform. The user must provide their personal information and pass identity verification (KYC). This procedure is mandatory to comply with financial regulations and ensure investor security.

Identity verification ensures that only eligible persons can purchase RealTokens. It also protects the platform against fraud and money laundering. Once identity is validated, the investor can access available properties and proceed with their first purchase.

To store RealTokens, the investor must have a compatible crypto wallet, such as Metamask or Rabby. This wallet allows receiving and managing tokens directly on the blockchain for total autonomy in real estate asset management.

Selection of Available Properties

After account validation, the investor can consult the list of available properties on RealT. Each property is accompanied by detailed information, including:

• Rental yield: amount of rent received in stablecoins;
• Location: property address and characteristics of the local real estate market;
• Appreciation potential: possibility of property value increase over the long term.

The investor must consider several criteria before buying RealTokens. The yield rate directly impacts the investment’s profitability, while the location can influence future property price.

The platform also provides legal and financial documents for each property. This information allows investors to assess the property’s solidity before finalizing their purchase. This transparency is a major advantage of RealT compared to traditional real estate investment.

The Token Purchase Process

Purchasing RealTokens is done in a few simple steps. Once the property is selected, the investor chooses the amount they want to invest and proceeds with payment.

Several payment options are available:

• Ethereum (ETH);
• Stablecoins (USDC, DAI);
• Credit card (fiat converted to crypto).

After payment, the transaction is automatically recorded on the blockchain. RealTokens are instantly sent to the investor’s wallet. This blockchain record guarantees a tamper-proof and secure proof of purchase.

The tokens remain stored in the investor’s wallet, who can keep them to receive rents, resell them on the secondary market (YAM), or use them in DeFi as collateral to obtain stablecoin loans.

Thanks to this smooth and fully digital process, RealT simplifies real estate investment and makes it accessible to investors worldwide.

Profitability and Passive Income with RealT

Investing with RealT allows access to regular rental income while benefiting from the flexibility and transparency of blockchain. Unlike other forms of real estate investment, RealT offers frequent payments and automated management.

Rental Yields and Payments in Stablecoins

RealT investors receive rents in the form of stablecoins (DAI or USDC). These payments are distributed weekly directly to the crypto wallets of RealToken holders. This regularity is an advantage compared to traditional real estate, where rents are often paid monthly.

The average yield of RealT properties varies depending on location and management. Some properties offer an annual return of 10%, a figure well above that of traditional real estate investments.

The blockchain guarantees real-time tracking of rental cash flows. Each payment is recorded transparently and immutably. Unlike a bank transfer, where errors can occur, the automated distribution of rents avoids delays or omissions.

Comparison with Other Investments

Investing via RealT stands out from other options available on the market. REITs (Real Estate Investment Trusts) allow investment in companies owning real estate assets. They offer indirect exposure to the real estate market, but their value fluctuates according to financial markets. This volatility can reduce income stability.

Traditional real estate investment requires a significant initial capital. Moreover, it involves active property management and high fees (notary, taxes, repairs). In comparison, RealT eliminates these constraints by automating management and lowering barriers to entry.

DeFi and staking sometimes offer higher yields but are often associated with higher risk. Cryptos placed in staking may be subject to market volatility and fluctuations. Tokenized real estate provides a stable alternative, allowing portfolio diversification.

Reinvestment and Leverage

Income generated by RealT can be used to gradually increase investor returns.

• Reinvestment of rental income: investors can use their rents to buy new RealTokens, thus strengthening their real estate portfolio without injecting new funds;
• Using RealTokens as collateral: the RealT Money Market (RMM) platform allows borrowing stablecoins by placing RealTokens as collateral. This approach grants access to additional capital without selling held real estate assets;
• Capital optimization: thanks to this flexibility, an investor can generate additional returns by combining rental income and stablecoin borrowing.

With these different strategies, RealT offers a profitable and scalable solution, suited for investors seeking to maximize their passive income.

Some Concrete Investment Cases with RealT

RealT allows investors to adopt different strategies to optimize their returns. Some diversify their assets to limit risks, while others use leverage mechanisms to maximize gains.

Diversification with Multiple Properties

Consider an investor with a capital of $5,000 who decides to buy RealTokens spread across several real estate properties located in the United States. He selects properties with varied rental yields, combining residential buildings and houses.

This approach allows him to reduce exposure to fluctuations in the local real estate market. If one property experiences a drop in yield, the others continue to generate stable income. By diversifying over several properties and locations, he lowers overall risk and secures passive income.

This approach allows him to reduce exposure to fluctuations in the local real estate market. If one property experiences a drop in yield, the others continue to generate stable income. By diversifying over several properties and locations, he lowers overall risk and secures passive income.In just six months, this investor will see rents accumulate in stablecoins. He can then reinvest this income into new properties and gradually increase the value of his real estate portfolio.

Borrowing and Leverage via RealT Money Market

Consider another investor who already owns $10,000 worth of RealTokens. Instead of selling his assets to obtain liquidity, he uses RealT Money Market (RMM) to borrow $5,000 in stablecoins by putting his tokens as collateral.With these funds, he buys new RealTokens, which allows him to increase rental income without touching his initial capital. Thanks to this leverage, he can accelerate the growth of his real estate portfolio.After one year, the rents collected will allow him to gradually repay his loan while keeping his properties. This strategy optimizes profitability and increases exposure to the real estate market without needing additional equity.Tokenized real estate revolutionizes investing by making this market more accessible and liquid. RealT offers an innovative solution that enables acquiring fractions of real estate without traditional administrative constraints. Thanks to tokenization, investors can easily buy, sell, and manage their assets. Receiving rents in stablecoins ensures financial stability and predictable returns. Integration with DeFi adds possibilities for capital optimization, notably through borrowing and reinvestment.Whether to diversify a crypto or traditional portfolio, RealT positions itself as an efficient, profitable, and suitable alternative for modern investors’ needs.

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