RealBlocks is a two-sided platform that leverages the Ethereum blockchain for real estate capital markets. By allowing sponsors to raise capital globally through issuing tokenized securities, our platform provides sponsors with a unique opportunity for secondary liquidity. Our platform also allows investors to directly purchase ownership interest in real estate using digital and fiat currencies, while providing a mechanism for peer-to-peer liquidity. By using RealBlocks, anyone in the world is now able to directly invest, raise capital, and obtain liquidity for investments in real estate.
The RealBlooks team is creating a technology solution for real estate investing that utilizes blockchain for tokenized ownership of real estate. Until this point, private real estate markets have been characterized by high barriers to entry and limited liquidity options. By leveraging the functionality of blockchain technology, RealBlocks users will benefit from improved access, liquidity, security, transparency and reduced fees. The platform is designed to allow investors in various jurisdictions around the wor1d to instantly buy, sell or trade fractional interest in United States real estate via the issuance of security tokens backed by real estate assets.
A typical offering on our RealBlocks platform will consist of a GP-LP structure. We intend to work with sponsors to generate an issuer Special Purpose Vehicle (“SPV”) which will hold the title to each real estate asset in the portfolio and issue tokens equivalent to the amount of the total portfolio value. The sponsor would act as a GP for this SPV and would own a certain percentage of the tokens. The LP interest of the SPV would be tokenized and distributed to investors. As a result, investors would be purchasing LP interests of the entity which owns the underlying real estate asset.
Medium by realblocks-blog
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