Passive income from tokenized real estate
History:
Few years ago, I’ve worked with an individual from US who had, at that time, an idea new and interesting to me. This idea was to buy some property, divide it into shares, and sell shares to anyone willing to invest.
The premise was, that property value was equal to sum of all shares. So each share had a value directly proportional to the value of the property.
Meaning, if property X was valued at $100k at time of purchase, and we decided to split it in 100 shares, each share would be valued at $1k.
If the property market was good, and value of the property was now assessed at $120k, this means each share would now be valued at $1.2k.
In addition to that, the property, would be rented out. The rent would be collected by the company, management fee’s subtracted, and what’s left would be divided into Y parts, where Y was the number of shares for this property. Then, depending how many shares of the property you own, you would get as big of a slice of the rent money.
A while back ago:
Several months ago, I came across an article that mentioned the idea above, but tokenised and on blockchain. Which means, shares could be purchased with crypto, as well as fiat.
This article was talking about RealT
I’ve spent days looking at the website, trying to figure out if it’s a scam or legit.
So far, all of the facts point that it’s legit.
Few days have passed, and i decided to give it try. I purchased several shares of this estate: https://realt.co/product/20200-lesure-st-detroit-mi-48235/
Payment was done via Coinbase widget, i chose payment in ETH. I bought total of 3 shares for i think $208, aka 1.09 ETH at that time.
The website is promising $7.11 per token per year. So technically this will be 0.058 cents per day. Lets see…
The idea of this thread will be to give you guys review of the process, and if in fact the whole idea is legit or not. I’ll try to give as much info as possible, and try as many options as possible.
If everything checks out, this could prove to be a really nice long term passive income stream, so I’m giving it a go and hopefully will be able to provide insight. Worst case, i lose some money.
Timeline:
After doing my due diligence, i decided to go ahead and do KYC , purchase the tokens, and whitelisting my ETH wallet. KYC is mandatory, due to US regulations regarding US investors.
After few hours, i received an email informing me that my KYC has been processed, and that I’m now fully verified investor in RealT project. Additionally, I received a digital document, which both parties have to sign in order to finalize my purchase. Several minutes after i digitally signed my side, i received confirmation that they have signed it as well, and that my tokens have been delivered to ETH address which I whitelisted upon doing KYC.
Sure enough, tokens were there, and so was my first day rent. I was happy.
As the days were passing by, every day at roughly the same time, a new chunk of DAI was received in my wallet. Happy with the result so far, and truth be told, a little addicted, i bought more tokens. In the mean time, due to instability of DAI, the company switched over to USDC, and sure enough, it kept coming every day. (currently, cumulatively every 3 days due to ETH network congestion, but still, on the dot. Not a single payment missed.)
Fast forward to present day:
I already have over $2000 invested in 9 different properties. Netting me around 65 cents per day. And I’m more than happy. The project is growing, adding new properties every few weeks, and they’re usually sold out within hours!
My current goal is to get to $1 income per day, then $5 per day, and so on and so forth. And the best part, each token can be sold back to RealT or on Uniswap for about the same price i bough it, so no brainer there.
This truly looks promising, and a huge potential for passive income in the long run
Some facts about RealT and their tokens/properties:
- rent is paid on a daily basis, but depending on the ETH congestion, it might be bundled and sent every 3 days
- each property can be sold back to the team, or other people on airswap/uniswap. But in order to buy property on those platforms, you need to buy at least 1 token from the Realt website in order to get whitelisted (again, US regulations)
- each property gets a yearly evaluation, and potentially, the price of token can increase/decrease once a year
- price of tokens is usually around $50 per token, and is a great gateway into trying out how the system works. If you don’t like it, you can always sell it back
- each property is registered as LLC, thus visible in government institutions (100% transparent)
Conclusion:
The project is promising, the team behind it over 30 years in real estate business, and everything is transparent. I’ve asked around, even employed some of my friends inside US to check it out, and we’ve found no red flags.
To me at least, this is a great indicator. As everything in life, nothing is 100% guaranteed, but for now, I’m an avid supporter and investor, and plan on investing more in the future.
If you plan to try it out, consider using my referral link “https://realt.co/ref/some1special/” and i’ll even reimburse you for the referral fee i get on your first purchase. Just DM me on Telegram @btcltcdigger and I’ll send you the amount that was sent to me (ref. fee is 2%, so not much, but it makes people happy) and this will make your purchase even sweeter.
