Hype rating: 5
Description: Real estate tokenization Protocol and property trading Platform.
Created by a highly professional team with a background in IT, investment and marketing, who had $400 million worth of real estate deals last year, Alt.Estate benefits from the advisory board with worldwide expertise and transactions in real estate worth more than $3 billion. Team & Advisors.
The total value of world real estate reached $217 trillion in 2015 and is worth nearly 2.7 times the global GDP. This number includes only developed real estate, and would have been much larger had we counted the vast amount of undeveloped land around the globe. Although the real estate market has plenty of opportunities for making big gains, investing in real estate is a lot more complicated than investing in stocks and bonds.
Several major problems and barriers persist in real estate markets:
- High threshold for entry
- Lack of liquidity
- Slow and complicated process of ownership transfer
- Lack of price transparency
- Risks of fraud
- High transaction costs
- Complications of cross-border transactions
All of them have been addressed many times throughout history . New investment vehicles have been invented which solve some of those problems, but there is no perfect solution, and the real estate market is still the most inefficient one compared to other asset classes. Real estate tokenization on blockchain technology is the next step in the evolution of real estate investment. Our goal is to make our tokenization Protocol the industry standard for property tokenization:
Crypto Investors Gain Easy Access to New Assets
The number of people using cryptocurrency today has seen significant growth and rivals the population of small countries. It is impossible to know precisely how many people use cryptocurrency but all the studies show that there are millions of unique active users and the number is expected to grow exponentially in the next years.
We see the growing demand from them for the diversification of assets to fiat exposure without leaving crypto universe. During downtrends in crypto markets protective assets are being especially needed. Real estate backed tokens are the best option to meet those needs.
Everyone Can Invest in Real Estate (Middle Class)
Historically, the global real estate investment market has only been available to a small subset of investors. Large investment funds, corporations and high net worth individuals had almost exclusive access to this asset class. In addition, costs in real estate transactions can be as high as 30% of the property price, with many intermediaries earning up to 100% profit margins. This is not fair, and Alt.Estate will provide unprecedented access to the global real estate market for most of the population, who could not participate in this economy before.
Traders Identify Arbitrage Opportunities and Make Profit
Alt.Estate makes no recommendations about any particular investment, but the Platform provides investors with tools, relevant information, market data, sponsor information, property information and third-party information.
Traders will do their own due diligence and research when making decisions to buy undervalued tokens and sell overpriced ones. Higher liquidity and price transparency enables trading real estate like shares or bonds.
Whales Buy Real Estate With Their Cryptocurrency
Many early Bitcoin and Ether miners and investors have made a fortune. In addition to the motivation of all crypto investors to reduce exposure to crypto assets and diversify their portfolio, they need a convenient and low-cost way to buy expensive real assets.
While a growing number of merchants worldwide are accepting cryptocurrency as a payment method, and there are some projects allowing customers to pay by card directly from a crypto wallet, those payments are limited in size.
The Alt.Estate Platform will provide users with the opportunity to buy real estate all over the world for personal use.
Institutional Investors Increase Their Deal Flow and Earnings, Providing Others Access to Higher Profile Deals
Institutional investors can increase their deal flow through virtually outsourcing part of their job to find lucrative real estate investment opportunities to Alt.Estate. Also, institutions can earn a higher return through negotiating special investment terms for being cornerstone investors providing a substantial part of the fundraising amount. It is a “win-win” solution as other investors are ready to give away a fraction of their return to gain access to higher profile deals. Also, the participation of institutional investors, who always carry out their own due diligence, increases the confidence of smaller investors that may lack professional investment expertise.
With Alt.Estate, ownership and transaction data is accessible to all peers on the network. It is stored in the distributed web and hashes are recorded to the blockchain. The distributed consensus is achieved via a proof-of-stake algorithm: buyers and sellers are empowered with control of their information and have more confidence in conducting transactions.