By allowing investors to buy fractional ownership of properties using tokens, RealT is changing the way people invest in real estate. Jean-Marc & Rémy Jacobson co-founders of RealT, 2019 Their platform is taking traditional real estate out of the dark ages and into the exciting world of crypto currencies. This innovative model opens up thrilling possibilities for earning passive income. It unlocks the ability to use RealT tokens as collateral and smoothly connects with decentralized finance (DeFi) services through the RealT Money Market (RMM). With RealT, investing in real estate is more accessible than ever before. By making it possible to acquire tokens at lower capital levels starting from only $50, they’re breaking the investment model’s mold through blockchain and DeFi innovations.
Fractional Ownership Through Tokenization
RealT’s main focus is on the tokenization of real estate assets. The process is relatively simple, but it requires converting the ownership rights of any given property into its own digital tokens on a blockchain. These tokens allow for fractional ownership. This gives investors the ability to own a partial share of a property, rather than the whole asset. This fractionalization makes it more accessible for the average person to invest in real estate. Now, users are able to engage with a significantly lower capital outlay.
The ability to invest with much lower capital at times as low as $50 democratizes access to real estate investment. This increased flexibility creates possibilities for a broader range of investors. Even those without much skin in the game can play by the rules of the real estate game. This level of accessibility has been a major driving factor in RealT’s mission to revolutionize the world of real estate investing.
RealT’s use of blockchain technology isn’t limited to making investment more accessible to more people. It provides investors with increased liquidity. Traditional real estate transactions are time-consuming and inefficient, with massive amounts of paperwork and high transaction costs that can slow deals down for weeks to months. Tokenized real estate can be traded instantly on blockchain-based exchanges. This newfound efficiency provides investors with more flexibility and control over their investments.
DeFi Integration with RealT Money Market
RealT goes a step further in its innovation by bringing DeFi services on-chain through its platform, RealT Money Market (RMM). This integration gives users the ability to use their RealT tokens in a new world of DeFi apps. In doing so, it increases the scale, depth and impact of their investments. Developer Scaling technology In a nutshell RMM runs on the Aave V2 protocol, one of the most decentralized, secure, and reputable DeFi lending protocols.
Perhaps the most innovative feature of RMM is that RealT tokens can be used as collateral for loans. This gives investors greater access to capital without needing to sell their real estate tokens. Their system ensures that the value of your deposited RealT tokens is always greater than the loan value. This builds in a huge margin of safety that shields lenders.
During this process, RealT lenders receive annual interest on whatever assets they lend against. Since interest rates are high, the market currently drives rates upwards, meaning lenders are offering higher rates due to less demand on the RMM platform. By utilizing this market-driven approach, interest rates remain competitive. Consequently, lenders are rewarded with excellent returns, and borrowers receive access to affordable, long-term capital.
An enormous benefit of RealT’s DeFi services is the stunningly lessened dependence on conventional intermediaries. The platform lacks stringent identity verification measures, allowing wider access to a global user base. Plus, the lack of third-party validation makes transactions easier and cheaper, making the process of investing even more efficient.
Disrupting Traditional Real Estate Investment
RealT’s platform serves as a bridge between the traditional real estate market and the burgeoning world of cryptocurrencies. It provides a very different and innovative investment approach. Through tokenization, RealT is dramatically changing the way investors can participate in the real estate investment space. They make investing more accessible, liquid and efficient by tokenizing all assets and bringing DeFi services together.
Compared to traditional real estate investments, RealT’s approach offers a wealth of advantages. The lowered barrier to entry gives new investors the ability to start investing with less capital. The provision extends the breadth of available, potential investors. This additional liquidity created through tokenization allows investors to transact with their assets more easily, offering them flexibility.
With the integration of DeFi services like decentralized lending, it brings a whole new level of value to RealT’s platform. RealT gives users a way to use their tokens as collateral. This strategy even lets them get paid interest on their lending, opening up new opportunities to generate alpha on the underlying real estate. RealT updates the traditional real estate investment model with decentralized technology from the DeFi world. This potent combination ensures that RealT is setting the pace in an ever-changing world of real estate investment.
