RealT

RealT or RealToken LLC, the issuer of the RealTokens, is a Delaware series limited liability company (LLC). This means it can separate its assets into different series, each acting as an independent entity. Each series owns a single piece of real estate.

The ownership of each series is broken down into digital tokens called RealTokens. Each RealToken represents a share of ownership in the specific property owned by that series. These tokens are ERC-20 tokens on the Ethereum blockchain, meaning they can be easily traded and managed using Ethereum’s technology.

When you own RealTokens, you effectively own a piece of the property. However, the day-to-day management of the property, like collecting rent and maintenance, is handled by a property management company who is a third-party service provider selected by RealT at the time of property acquisition. This company takes care of everything, so token holders don’t need to worry about the usual responsibilities of being a landlord. The service provider is paid a fee of 5% of the rents collected and 1.5% of the cost of all repairs.

If the property generates rent, this income is collected by the property management company and converted into Dai, a stable digital currency. The rent is then distributed daily to the wallets of RealToken holders in proportion to their ownership.

RealToken holders have the right to vote on important decisions regarding the property, like selling it or changing the property management company. This gives token holders control over their investment while keeping the process simple and streamlined.

They are sold under specific legal exemptions to ensure compliance with U.S. securities laws. Within the U.S., they are sold only to accredited investors under Regulation D Rule 501. Outside the U.S., they can be sold to non-U.S. persons under Regulation S.