RealT Scam Or Legit Investment? (Tokenized Real Estate)LAST UPDATED: July 10, 2023 | By Conrad Golly
RealT is a company that offers tokenized real estate on the blockchain, allowing investors to buy fractional ownership of properties. While some investors have had positive experiences with RealT, others have raised concerns about the legitimacy of the company and its practices. This article will explore the question of whether RealT is a scam or a legitimate investment opportunity.
RealT Scam Or Legit Investment: RealT’s business model is based on the idea of democratizing access to real estate investment opportunities. By tokenizing properties and allowing investors to buy fractional ownership, RealT aims to make real estate investing more accessible and affordable. However, some investors have reported issues with the company, including delayed distribution of tokens and a lack of customer support.
So, is RealT a scam or a legitimate investment opportunity? The answer is not clear-cut, and depends on a variety of factors. In this article, we will examine the evidence for and against RealT’s legitimacy, and provide readers with the information they need to make an informed decision about whether to invest in this platform.
Table of Contents
What is RealT?
RealT is a legitimate company that offers legally compliant tokenized real estate on the blockchain. The company acquires properties and lists them on its marketplace, allowing investors to buy individual tokens of the assets. Each token represents a share of ownership and entitles the owner to collect rental income.
Tokenization of Real Estate
Tokenization is the process of converting ownership rights of an asset into digital tokens on a blockchain. In the case of RealT, tokenization allows investors to own fractional shares of real estate properties, which are represented by digital tokens. This makes investing in real estate more accessible to a wider range of people, as it reduces the amount of capital required to invest in a property.
Benefits of Tokenized Real Estate
The benefits of investing in tokenized real estate include:
- Diversification: Tokenized real estate allows investors to diversify their portfolios by investing in multiple properties.
- Liquidity: Tokenization allows for fractional ownership, which can be easily traded on a secondary market, increasing liquidity for investors.
- Transparency: Blockchain technology provides a transparent and immutable record of ownership and transactions, reducing the risk of fraud.
- Accessibility: Tokenization allows for smaller minimum investments, making real estate investing more accessible to a wider range of people.
RealT’s platform manages to bring investments in real estate to a whole another level, offering access to blockchain-enabled properties and also participating in the DeFi economy with their product, the RealT tokens.
RealT Scam or Legit?
Overview of RealT’s Legitimacy
RealT is a real estate crowdfunding platform that utilizes blockchain technology to manage asset ownership, voting rights, and distributions. The platform allows investors to purchase fractional ownership of real estate properties using cryptocurrency. RealT claims to provide investors with a secure and transparent way to invest in real estate, but its legitimacy has been questioned by some.
Despite some concerns, RealT is a registered company in the US and has partnerships with reputable companies such as Coinbase and Uniswap. Additionally, the platform has received positive reviews from customers on Trustpilot, indicating that it may be a legitimate investment opportunity.
Factors that Determine RealT’s Legitimacy
Several factors can determine whether RealT is a legitimate investment opportunity or a scam. One factor is the platform’s transparency. RealT should provide investors with detailed information about the properties they are investing in, including their location, market value, and potential returns. Additionally, the platform should be transparent about its fees and charges, so investors can make informed decisions.
Another factor is the platform’s security. RealT should have robust security measures in place to protect investors’ cryptocurrency and personal information. The platform should also have a clear process for reporting and resolving any security breaches or fraudulent activities.
Finally, RealT’s legitimacy will depend on its compliance with regulatory requirements. The platform should comply with all applicable laws and regulations, including securities laws and anti-money laundering laws. RealT should also have clear policies and procedures in place to ensure compliance and mitigate any legal risks.
How to Invest in RealT?
Steps to Invest in RealT
Investing in RealT is a simple process that can be completed in a few easy steps. Here are the steps to invest in RealT:
- Browse the RealT marketplace to find a property that you are interested in investing in.
- Add the property to your cart and proceed to checkout.
- Pay for the property with the cryptocurrency of your choice.
- Receive your RealTokens, which represent your ownership of the property.
- Collect your share of the rental income and any profits from the sale of the property.
Risks of Investing in RealT
As with any investment, there are risks associated with investing in RealT. Here are some of the risks to be aware of before investing in RealT:
- Real estate values can fluctuate, which can affect the value of your investment.
- The rental income from the property may not be as high as expected or may stop altogether.
- The cryptocurrency used to pay for the property may decrease in value, which can affect the value of your investment.
- There may be legal or regulatory issues that could affect the ownership or sale of the property.
- RealT is a relatively new platform, and there is a risk that it may not be successful or may be shut down.
It is important to carefully consider these risks before investing in RealT and to consult with a financial advisor if you have any questions or concerns.
Is Digital Real Estate Legit?
Yes, digital real estate is a legitimate investment option. RealT is a company that offers legally compliant tokenized real estate on the blockchain. After acquiring a property, it is listed on their marketplace, and investors may buy individual tokens of that asset. Each token represents a share of ownership and entitles the owner to collect rental income.
RealT is not the only company offering tokenized real estate, but it is a reputable one with a track record of success. Investors can become owners with as little as $50, making it an accessible investment option for those who want to diversify their portfolio.
Investing in digital real estate is similar to investing in traditional real estate, with the added benefit of being able to buy and sell tokens easily on the blockchain. It is a legitimate and innovative way to invest in real estate without the high costs and barriers to entry of traditional real estate investing.
How Much Does RealT Pay?
The exact payment amount you will receive per token is determined by the ROI of the property and current market conditions. Generally, RealT aims to pay out more than 10% annually based on the invested capital.
Here you’ll see an overview of their most recent deals and their associated income:
You’ll notice that the expected income is typically higher than 10% per annum. In addition to the rental income, investors will also receive a return on capital once the property is sold or refinanced.
The return on capital is indicated just below the rental income and varies between 10-15% for the past year. Note that these gains will only be paid out once they are realized in the disposition of the property.
Let’s look at an example investment! Say you invested $10,000 across multiple properties with RealT and as a result hold several dozen tokens in your wallet. Then, your rental income is expected to be $1,000 per year (10%).
Yearly income: 10,000 * 0.1 = $1,000
Daily income: 1,000 / 365 = $2.74
In addition to the rental income, you’d receive a return on capital of around 12.5% which would come out to be $1,250 in this example. So the total earnings per year could be:
1,000 + 1,250 = $2,250
Just keep in mind that the capital appreciation associated with the property will not be paid out daily or monthly but will only be realized when the asset is sold.