RealT: How Crypto is Disrupting Real Estate

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RealT How Crypto is Disrupting Real Estate

Blockchain technology is the buzz of the financial world. The real estate community is taking notice as well. RealT is a platform token that is using blockchain technology to disrupt the real estate industry in many ways. Blockchain tokens are changing the face of real estate investing by providing liquidity to investments that were traditionally illiquid. Let’s explore how this technology has raised the bar for global real estate investment and why it’s going to transform how we do business in an industry worth trillions.

What is RealT and how does it work?

RealT is a project that facilitates fractional real estate investment and without friction. It becomes the owner of the future unique in its type, without permission and legal.

Smart contracts let you buy a fraction of a property without having to worry about getting the permission of any bank or government agency. 

RealT works like a token and was designed with three main goals:

  1. Ease of purchase: to buy with several most common possibilities for the crypto world, such as credit cards and also through the popular Coinbase exchange with currencies such as Litecoin, Bitcoin, Ethereum and USDC, among others.
  2. Simple management: RealT acts as a bridge between buyers and sellers. Multiple parties can access RealT through smart contracts and ethereum applications to sell their properties.
  3. Easy investment: buyers have the option of buying a property in one transaction or choosing to stay invested for an extended period of time.

The RealT ecosystem can also assist with the management of real estate portfolios, which gives investors a unique insight into all the details of real estate transactions. 

Tokenization in real estate

Tokenization means using blockchain technology to manage shares of equity. In real estate, there can be many different pieces of land. These land parcels are not owned by anyone and for a small fee, they can be transferred through blockchain technology. 

RealT has created a way to break boundaries and democratize real estate ownership using Ethereum-based tokens, so now you can own portions of property worth millions without being a millionaire.

Why is this useful? Tokenization allows investors to manage their real estate portfolios more efficiently and offers liquidity to an industry that often relies on stockholders, or limited partners. Blockchain allows everyone to easily have their money to be liquid when they need it.

RealT helps investors achieve financial independence with a daily income

The construction process of a building needs more than just a trusted contractor and an experienced architect. We need to make sure the land, which is the largest asset of a real estate owner, is respected and improved. But the process is not free of troubles, making this investment a difficult way of earning income. 

Most of us can agree that paying rent and real estate taxes has become an onerous burden that needs to be redefined. Although the concept of making a living from rent hasn’t changed, real estate investors need to start considering alternative ways to earn money. For example, cryptocurrency is a significant contributor to the growing crypto economy. Bitcoin and other virtual currencies are disrupting the business world as we know it by offering an entirely new way to transact.

RealT - payment flow

RealT payment flow

With its business model, RealT facilitates the possibility of obtaining these rents for the ownership of a property, without the hassles and problems generated by its administration and maintenance in the traditional way.

RealT offers three ways to pay the income generated

Blockchain technology can be applied to traditional real estate and it has a lot of promise. RealT provides a hybrid model where the blockchain makes it simple to invest in real estate assets. In return for tokens, investors can have some skin in the game to help build the platform. 

Blockchain tokens are the original digital currency. This technology can be used to exchange value or assets. The hybrid model that RealT offers removes the barriers to entry and creates transparency in the market. All of the assets are listed on the platform. Investors can be part of the management team and help drive the real estate market in a variety of ways. 

There are three ways that tokens can be exchanged for income generated by the platform: 

  1. in Ethereum for those who agree to pay the costs of GAS, 
  2. in a -new- L2 alternative in xDai which is already operational, 
  3. and finally they offer the option to re-invest in properties that will be used exclusively for that purpose.

Blockchain is the Future of Real Estate

While many people think of technology and financial services when it comes to real estate, blockchain has completely transformed how we will see the industry in years to come. We are not just talking about its efficiency but the whole premise of how it functions. 

Blockchain was developed in 2009, in an attempt to improve trust and transparency in the online market. Although blockchain technology is now available in nearly every industry, real estate seems to be one of the most important and disruptive models.

Conclusion

Technology will always be disruptive. As we venture into uncharted territory with blockchains, we will soon find ourselves trying to keep up with the changes. As we gain more knowledge, some things may become apparent that we overlooked previously. 

Is blockchain the next big thing in real estate? Just imagine the importance of this market throughout the life of families and every person in general. Then there is no doubt, this is something huge.

Image: Pexels, by permission. 


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