Property tokenization platform simplifies real estate investment using blockchain technology
Seattle, WA, USA – 16 May, 2019 – RealT, the innovative new platform aiming to simplify global access to U.S. real estate tokenization and investment, has launched with the announced offering of its initial residential property in Detroit, Michigan, as well as ambitious plans to expand to other U.S. cities in the coming year. The platform will also eventually function as a marketplace for current homeowners looking to tokenize and sell their own real estate assets. Powered by Ethereum, RealT offers legally compliant ownership of tokenized real estate, providing investors around the globe with a more efficient route into the U.S. property market and providing asset holders with direct access to liquidity.
Commenting on the launch of the platform, Rémy Jacobson, RealT’s CEO, said, “We are excited to launch RealT, a state-of-the-art financial tool for real estate tokenization and investment, which will facilitate the sale of residential properties in the United States. The real-estate market desperately needs a shake-up, with current limitations including laborious documentation processes, siloed markets, and high costs all acting as barriers to entry to investment, particularly for those living in other countries.
By tokenizing property ownership, RealT is simplifying the buying and selling process and opening up investment opportunities to a more diverse pool of investors from markets across the globe while also allowing homeowners to unlock the liquid value of their assets. We believe tokenization enables a worldwide marketplace for real estate investment, and it is the next step in the evolution of the industry. ”
RealT’s platform operates by utilizing a Delaware series limited liability structure where each series is treated as if it were a separate legal entity. Each series is represented by RealTokens and acts as a bridge between a token-owning individual and a piece of real estate property. Investors decide how many RealTokens to purchase and, based on token share, collect rental revenue from the tenant of the property.
RealT also plans to open its platform to individuals who wish to access the value of their own real estate assets through tokenization.
To launch the platform, RealT has chosen Detroit, Michigan, as the first city where it will offer tokenized property investment due to its comparatively low property prices and vast potential for growth. After decades of urban decay, new investment is now driving urban regeneration in the area. Improving real estate liquidity, RealT will enable investors to engage in fractional ownership of Detroit homes and generate passive rental income. To analyze the value of real estate and opportunities for growth RealT’s team closely monitors the Capital Improvement Plan (CIP) for cities around the United States. In this way, RealT aims to provide users of its platform with access to properties that provide significant investment potential.
“The recent influx of investment into Detroit, most notably a $4.5 billion USD injection by Fiat Chrysler that will preserve and add up to 5,000 jobs in the city, is emblematic of a period of renewed growth. RealT is proud to be among those contributing to the continued redevelopment of the city by offering a means of foreign investment into the Detroit housing market which will help to further develop the economy and drive urban renewal efforts. We’re delighted to launch our platform in the Renaissance City and contribute to its ongoing revitalization. We’re also planning on expanding to additional U.S. cities later this year and are passionately committed to making U.S. property investment a more realistic prospect for individuals around the world,” concluded Jacobson.
RealT is the innovative new platform aiming to simplify global access to U.S. real estate tokenization and investment. The platform, powered by the Ethereum blockchain, enables investors around the globe to buy into ownership of U.S. properties and enjoy passive rental income with a compliant, intelligent and user-friendly platform. The platform will also function as a marketplace for individual property owners to tokenize their own real estate assets. Ownership of each property will be tokenized through a unique series of ERC20 tokens, modified to meet transfer restriction requirements under applicable U.S. securities laws, on the Ethereum blockchain. Based on token share, owners collect revenue from rent, and vote on property decisions such as maintenance and leasing.
Account Supervisor // Wachsman
[email protected] // +353 87 709 7496
COO // RealT
One or more series of RealToken LLC are offering interests in such series deliverable in the form of cryptographic digital tokens (the “Securities”). The information provided in this press release is for informational purposes only and does not recommend the purchase of any security nor is it an offer to sell or a solicitation of an offer to buy any Securities. Offers to sell the Securities are only being made through the private placement memorandum for the offering and related subscription documents (the “Offering Materials”) which may be obtained by contacting the RealToken LLC contact above. This securities offering is available in the U.S. only to “Accredited Investors,” which is generally defined for natural persons as persons having a net worth of over $1 million (exclusive of the value of their primary residence) or gross income in excess of $200,000 individually or $300,000 jointly with a spouse in each of the last two years with the same expectation to match or exceed such thresholds in the current year. Securities are also being sold outside of the U.S. in compliance with Regulation S of the Securities Act of 1933, as amended (the “Securities Act”).
These Securities are offered in reliance on an exemption from the registration requirements of the Securities Act, and we are not required to comply with full disclosure requirements that apply to the offering of registered securities under the Securities Act. Neither the Securities and Exchange Commission nor any state or foreign regulator has passed upon the merits of or given its approval to the Securities, the terms of the offerings, or the accuracy or completeness of any offering materials.
Investing in private placements involves a high degree of risk. Securities sold through private placements are typically not publicly traded and, therefore, are less liquid. Companies seeking private placement investments like the series of RealToken LLC tend to be in earlier stages of development and have not yet been fully tested in the public marketplace. Investing in private placements requires high-risk tolerance, low liquidity concerns, and long-term commitments. Investors must be able to afford to lose their entire investment. The Securities offered under the Offering Materials for the offering are not FDIC insured, may lose value, and there is no bank guarantee.
Any statements contained in this document regarding the RealT platform, our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements. Investors are cautioned that these forward-looking statements involve uncertainties and risks that could cause actual performance and results of operations to differ materially from those anticipated. The forward-looking statements contained herein represent our judgment as of the date of publication of this document and we caution you not to place undue reliance on such statements. Our company, our management, and our affiliates assume no obligation to update any forward-looking statements to reflect events after the initial publication of this document or to reflect the occurrence of subsequent events. You should carefully consider the risk factors described in the Offering Materials. These risk factors and others could cause actual results to differ from the expected results included in the forward-looking statements contained in this press release.