REAL, a Singapore startup, launches its Ethereum-backed real estate platform in November. The platform grants investors access to global property deals, cuts the friction from traditional investing, a
REAL, a Singapore startup, launches its Ethereum-backed real estate platform in November. The platform grants investors access to global property deals, cuts the friction from traditional investing, and creates a market for trading these assets.
"REAL is a crowdfunding platform where anyone can benefit from global real estate investments without the usual complications associated such as excessive bureaucracy, lack of trust and lack of liquidity," said Enrique Dubois, co-founder and CEO of Real Estate Asset Ledger Pte. Ltd. Dubois said the platform uses blockchain to "take [the crowdfunding] concept to the next level by facilitating liquidity, transparency and global access."
Real estate crowdfunding has exploded. The category expanded from $19 million in 2012 to an estimated $3.5 billion in 2016. Analysts project the sector could hit more than $300 billion by 2025.
Dubois partnered with Bernardo Hernández, a serial entrepreneur and venture capitalist. Hernández founded idealista.com, Spain's largest real estate portal, and held senior marketing and product positions at Google. "[My partner and I have] always been enthusiasts of real estate, and as technology entrepreneurs, we wanted to facilitate real estate investments at a global level," Dubois said.
The system links property owners with potential investors. REAL records everything on the blockchain. "Every step of our activity, from property buying with third party value appraisals, to adding into the system, renting and selling, will be recorded on the blockchain so everyone will be able to audit and verify the information," Dubois explained. "Also by accepting cryptocurrency our users won't be dealing with banks and that will be a superior user experience."
Investors purchase properties using REAL tokens. Profits from rent and appreciation return as ether—Ethereum's native cryptocurrency—distributed through smart contracts. Token holders swap REAL tokens for REAL Property Participation rights (RPP). Users can trade or sell those rights to others on the platform.
The platform charges 10% of all profits. A property earning 100 ETH in rental income means REAL takes 10 ETH as a commission and passes 90 ETH to investors.
The company begins with opportunities in Spain, the Caribbean and the U.S.
