Are We a Real Estate Company?
Often, when people first hear about RealX, the question that comes up is, “Is RealX a real estate company?” The answer isn’t a simple yes or no. While we started by tackling some of the biggest challenges in real estate, our mission goes far beyond just one asset class. We are a team of problem solvers, dedicated to simplifying investments in Real World Assets. Instead of being overwhelmed by the scale of this undertaking, we focused first on real estate—an industry ripe for transformation.
The Problems We Set Out to Solve
Since our core mission revolves around simplifying investments, we encountered several challenges that needed immediate attention:
- HUF Investments: Many investors wanted to invest through Hindu Undivided Families (HUFs), something the market hadn’t fully addressed.
- NRI Investors: Given that we deal in property tokens (Asset-Backed NFTs), NRIs showed strong interest, especially in regions like the UAE and the US, where digital ownership is more widely accepted.
- Part Payments: Fractional real estate investments typically take 2-3 months for full subscription. Initially, we allowed investors to split payments into two installments, but we soon asked—why stop at two?
- DLT Account Enhancements: To make NFTs more accessible to the general public, we made DLT accounts more user-friendly. First, we introduced nicknames for DLT accounts, and now, we display the creation date on the account card—steps toward improving investor identification and security.
- Multiple DLT Accounts for Investors: This will address future challenges, including account recovery, ensuring that investors don’t lose access to their assets if they misplace their credentials.
Impact of These Solutions
At first glance, these challenges may seem trivial, but small, unresolved issues can hinder entire industries from advancing.
- HUF Investments: Many HUFs in India actively invest in stocks, so why not real estate? By allowing HUF-based investments, RealX has enabled a seamless way for families to co-invest in real estate, similar to how they invest in shares.
- NRIs & Liquidity: NRIs have always been keen on investing in Indian real estate, but liquidity concerns often push them away. With tokenized fractional ownership, investing in real estate becomes as easy as buying stocks.
- Part Payments & Capital Efficiency: Investors today avoid parking large sums in illiquid assets upfront. With shares and stocks now tradable in seconds, why should fractional real estate require a long waiting period? Our new approach ensures investors can contribute in small chunks and only complete payments when properties reach 80% subscription, ensuring efficient capital utilization.
How We Solved These Issues
HUF Investments:
After registering on RealX, any Karta of an HUF can complete the KYC process, add their HUF, and invest both individually and on behalf of the HUF.
NRI Investments:
Any NRI with an Indian PAN card can register, complete their KYC, and start investing in Indian real estate. This means NRIs can discuss emerging opportunities with friends and family in India, gaining insights into upcoming infrastructure projects and growth areas. We are giving you things to talk about with your friends back home.
Flexible Part Payments:
Now this can be rethought as well. Instead of paying upfront, investors can start with a small amount and continue contributing over time. Once a property is 80% subscribed, they complete their investment, ensuring their capital is deployed efficiently. If they choose not to complete payments, they still own the fraction they paid for, while the remaining units open up for new investors.
This model blends traditional real estate ownership, financial flexibility, and modern technology, unlocking endless possibilities for how people invest in real estate.
What’s Next?
Real estate isn’t just another asset class—it’s personal. People don’t just invest in property for returns; they see it as something to pass on to their families. It’s a long-term asset meant for future generations.
So, why shouldn’t a platform allow you to invest with your spouse or children? This is what we’re working on next—making real estate investment not just smarter and more flexible but also more collaborative and family-centric.
Stay tuned. We’re just getting started.
