As the human population grows the demand and scarcity of real estate have gone up tremendously. Even with the test of time the intrinsic value of land has constantly grown. Shelter is one of the most important basic needs and that being finite has always staged the value of the real estate in the best light. Real estate is the single most valuable industry in the world amounting to approximately 30% of the total world’s wealth.
Real estate has always been an expensive investment, to be a home or commercial space owner means creating an extremely big hole in your pocket and dumping a big pile of weight on your current Debt. People spend years saving enough money to be real estate owners. Thus depriving average people of buying real estate and allowing only the rich to invest in it. Therefore the first inefficiency within the real estate market is that it’s expensive.
The second inefficiency is the high transaction cost, in an average real estate sale 6% is paid to the realtor and a minimum of 30 days is required for the settlement of funds accompanying that is the excessive paperwork, deed transfers, insurance policies, and other documentation thus increasing the cost of the property all the more.
The third drawback is the siloed real estate marketplace, to sell the place realtors need to find buyers and traditionally the buyers should be within the same area or region thus reducing the potential number of buyers. Buyers from the international market cannot be invited to participate due to the capital control restriction by Governments for international capital transfers. Hence, making it difficult for any international real estate investment.
All the other drawbacks and inefficiencies make the real estate industry illiquid and inefficient.
But what if we told you that you can be a real estate owner starting at a bare minimum price of a few dollars and almost zero paperwork. You’d NEVER believe it.
Real T brings to you the opportunity to be a real estate owner in the US as a fractional investment that retains all legal rights and reaps its benefits i.e. rental receipts from your US real estate investment.
What is Real T?
Real T is a system of tokenizing real estate investment in the US. Real T is based on Blockchain technology, the future of technology.
The power of Blockchain on global value exchange and tokenization of real-world assets is presently well known. The capability of Blockchain for creating new tools for asset owners is leveraged to create a real estate industry integrated with public blockchain platforms. Digitization of ownership of any asset will enable average people to partake in owning real estate that was previously only limited to wealthy participants.
Tokenization of Assets through RealTokens will directly impact the largely illiquid assets making real estate a suitable market for asset tokenization. Due to asset tokenization, the US real estate market can be open for access to the global market. Tokenized real estate of RealT will increase real estate translatability thus facilitating the high fractionalization of real estate investments.
RealT transfers are just a One-Click process, and the gas is the exchange cost, the transfers are secure and quick. Its ability to fractionalize real properties into shares that are divisible by billions facilitates minimum transaction cost, attracts a broad range of investors, and minimizes the cost of ownership.
How does Real T work?
Ownership of real estate in the US has been converted into digital tokens on the Ethereum Blockchain through RealT.
RealToken LLC, a limited liability company in Delaware or RealT was created to tokenize US real estate properties. The certificate of formation in this unique form of limited liability company allows for unlimited segregation of membership assets into independent series and each series is a separate entity.
The series acts as an intermediary between the user owning the token and the piece of real property, the ownership of the tokenized series is represented through ERC-20 tokens (RealTokens) on the Ethereum Blockchain. Each RealToken signifies ownership in one share of the series thus implying the ownership of the piece of real property i.e, individuals holding RealTokens are indirect owners of the real estate properties owned by the RealToken LLC.
With the help of property management companies, the real estate properties in the series can be maintained with little-to-no participation from the individuals owning the RealTokens, owners of the single real estate property retaining full legal rights over the property. There is a unique set of RealTokens for each property in the RealToken LLC distinguished by their UIN (Unique Identifying Number).
What will the collaboration with EPNS do for RealT?
In the first phase of RealT, all the properties will be rented and the owners will receive the rent daily from the tenants. Users of RealT are provided with a curated list of real estate properties with the freedom to invest as little and as much as they want. To make the user experience frictionless and smooth there is a need for decentralized push notification and for that EPNS can help.
EPNS helps in providing a seamless communication channel between the users and the protocol or applications. It is a decentralized Push notification protocol that provides real-time Push notification about the updates of the transactions or activities indulged in on the Blockchain platform.
Protocols can create channels with EPNS and send notifications to users who have subscribed to such a channel directly in their digital wallets. EPNS is platform-agnostic and can send notifications from any platform, protocol, or application to the user’s digital wallet.
With this collaboration, EPNS will send direct Push notifications to the users of the RealT protocol. The users can get the direct listing and rental receipts in real-time which will help users invest in good real estate opportunities as soon as they are being listed and not miss out. With the timely notification about daily rental receipts, users will be able to withdraw the receipts and invest them in the opportunities that are open only for a limited period on the DeFi platform.
This collaboration between EPNS and RealT will smoothen the process of owning real estate while possessing all the legal rights and protection as provided to real estate owners in a traditional setting. Through this collaboration, EPNS will play an elemental role in the development of the RealT platform further.
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