By combining decentralized finance (DeFi) and fractionalized property ownership, RealT is changing how we invest in real estate. In 2019, Jean-Marc and Rémy Jacobson, along with Rémy’s twin brother Rob, co-founded RealT. They democratize investing by allowing for fractional purchase of property-backed tokens, opening up thrilling possibilities to seasoned and novice investors alike. RealT combines DeFi services with its RealT Money Market (RMM) platform. This link between cryptocurrencies and real estate opens up exciting new investment opportunities that were previously unavailable in today’s traditional investment model. This groundbreaking method is revolutionizing the way people invest in real estate, offering more accessible, flexible, and efficient investment opportunities.
RealT: Pioneering Tokenized Real Estate
RealT is at the forefront of the tokenized real estate industry. It allows people to buy shares of properties with much lower amounts of capital than direct investment requires. Using this distributed ledger system, on its platform, investors can purchase fractionalized portions of individual properties in the form of tokens, with each token indicating an ownership share. These tokens provide holders with the right to receive a proportional share of the property’s rental income. This setup produces a predictable, stable source of passive income.
Founded in 2019 by Jean-Marc and Rémy Jacobson. Along with this approach, they imagined a future in which investment in real estate would be available to everyone. Their platform democratizes the mysterious, arcane, and oftentimes intimidating barriers of conventional real estate deals. It breaks down prohibitive capital requirements, clears out massive amounts of red tape, and sweeps away geographic barriers.
This fractional ownership model doesn’t just make entry easier, it makes it more liquid. For instance, you can buy, sell, and trade RealT tokens on a range of crypto exchanges like Uniswap or Bitmart. This enhances investors’ flexibility and control over their investments. That liquidity provides a huge advantage over physical real estate. In that market, it’s a long and cumbersome process to sell a property.
Integrating DeFi Services with RealT Money Market (RMM)
RealT goes a step further with this innovation by incorporating DeFi services with its RealT Money Market (RMM). RMM runs on Aave V2 protocol, one of the most tested and secure DeFi protocols. This integration opens up new, fun, and innovative ways for RealT token holders to utilize their assets. It increases their ability to deliver with higher risk-adjusted returns and more financial capacity.
The most innovative aspect of RMM is that users can collateralize their RealT tokens. This enables them to re-loan other cryptos. This feature lets investors access liquidity without having to sell their real estate tokens. It provides them with a powerful tool to maintain their fiscal positions. The deposited RealT tokens should have a total value greater than the loan amount. This unusual requirement serves to ensure that the platform remains actuarially sound and continues to safeguard taxpayers and lenders.
Apart from borrowing, RMM lets users lend their cryptocurrencies to make interest. In lending, lenders charge annual interest, with rates determined by actual supply and demand for these loans. This has led to an innovative and fast-moving marketplace where capital swiftly flows to its most productive uses. The DeFi component of RMM makes transaction execution not rely on any traditional intermediary, service, or infrastructure. This dramatically cuts expenses while maximizing productivity.
DeFi's inherent characteristics, such as the absence of strict identity verification and third-party validation, further enhance the accessibility and efficiency of RealT's platform. This is exactly in line with RealT’s mission. Our mission is to democratize access to real estate investment and create opportunity for people who have been historically locked out of conventional financial systems.
Accessibility and Benefits of RealT Tokens
RealT’s magic is their ability to bring access to real estate investment with much lower capital requirements. You can begin buying RealT tokens with as little as 50 dollars. This small entry point creates a highly attractive option for cash-poor investors. This relatively low barrier to entry democratizes real estate investment, letting a wider array of people invest in the market.
Adding the ability to use RealT tokens as collateral just adds cherry on top of that pie. Credit markets Investors can use their real estate assets to gain liquidity by borrowing against their properties rather than liquidating them. This can be especially valuable for investors who want to maximize their capital for other investment opportunities or personal needs.
RealT tokens produce passive income via rental yields. Those rental proceeds become the income yielding asset for which token holders receive an agreed upon proportional share of the income. This allocation provides a reliable source of funding. This passive income provides excellent diversification to an investor’s portfolio. It provides protection not only against inflation, but against other types of economic uncertainty.
RealT’s DeFi services provide an exciting and innovative alternative to traditional investment models. Lower capital requirements lower the bar to entry for investors. Moreover, by using tokens as collateral, investors can earn passive income on their investments, attracting both new and advanced investors alike. Currently, realT is making it easier for people to connect the cryptocurrency world with real estate. This novel provision opens the door to a more accessible, flexible, and efficient investment landscape.
