Miami investor starts crypto platform for real estate investment

RealT will allow investors to invest in single-family rentals beginning in Detroit

TRD NATIONAL /
May.May 13, 2019 03:43 PM
Remy Jacobson (Credit: LinkedIn)

Remy Jacobson (Credit: LinkedIn)

UPDATED, May 14, 9:15 a.m: Miami real estate investor Remy Jacobson is a cryptocurrency enthusiast.

But when the Initial Coin Offering – the crypto equivalent of an IPO – craze came and ended at the start of 2018, Jacobson and his brother, Marc-Jean, wanted to create a way the average investor could invest in digital currencies in a less volatile way.

The Jacobsons launched a crowdfunding platform called RealT that allows cryptocurrency investors to invest in real estate assets, starting with rental homes in Detroit, Michigan. The company is expanding next to Cleveland, New Orleans and South Florida, Remy Jacobson said. Jacobson heads the Aventura-based development firm J Cube Development.

Through RealT, investors can browse real estate assets they would like to invest in. Using dollars, they invest in properties and receive a share of their investment in ERC-20 tokens, which are used on the Ethereum platform. Based on their token share, owners then collect income from the rent that the property generates, according to a press release.

A three-bedroom, one-bath home in Detroit is currently available on RealT for $63,750, which costs 1,000 tokens. Investors can purchase tokens for $63.75 apiece.

Through ownership of an LLC, investors receive an interest in the properties. That gives token owners the ability to physically enter and visit the property with proper notice to tenants, according to the company’s website.

“For real estate investors, this creates liquidity overnight. If they want to list the property within a matter of days, they could get the sale in tokens,” Jacobson said. “It is a really effective tool for landlords.”

South Florida has been home to a few known cryptocurrency deals. Earlier this year, a downtown Miami office building leased to WeWork was expected to sell for $65.5 million in a deal that will be financed through one of the largest known cryptocurrency real estate auctions of its kind. Bitcoin investor Michael Komaransky sold his Miami home nearly entirely in cryptocurrency last year, for about $6 million.

Digital currency still remains highly volatile, and while it’s been used in smaller real estate deals, it has yet to become an industry-accepted form of payment.

Remy Jacobson’s J Cube Development owns the property at 4141 North Miami Avenue in the Miami Design District. He’s expecting to close on a construction loan for that project soon, he said. In 2018, he sold a 30,000-square-foot property at 2217 and 2233 Northwest Miami Court in Wynwood to hotel developer Quadrum Global for $8.55 million.

Correction: A previous version of this story incorrectly stated the value of each token. 


Related Articles

arrow_forward_ios
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)

Southland Mall’s troubled $65M CMBS loan for sale

Southland Mall’s troubled $65M CMBS loan for sale
Alan Ojeda and 8894 NW 44 Street in Sunrise (Google Maps)

Rilea Group scores $46M construction loan for Sunrise apartments

Rilea Group scores $46M construction loan for Sunrise apartments
Yard 8 and Wood Partners CEO Joseph Keough (Courtesy of ACRE)

Wood Partners lands $86M refi for Midtown Miami apartments

Wood Partners lands $86M refi for Midtown Miami apartments
Masoud Shojaee and a rendering of Shoma Village 

Shoma Group scores $67M loan for mixed-use Hialeah project

Shoma Group scores $67M loan for mixed-use Hialeah project
Housing Trust Group CEO and president Matt Rieger and Hudson Village renderings

HTG scores financing for Hollywood affordable housing project

HTG scores financing for Hollywood affordable housing project
As resi brokers in South Florida report an uptick in sales and rentals largely fueled by homeowners fleeing dense markets like New York, office brokers say they’re starting to see a similar trend play out among tech firms. (iStock)

More tech firms eye Miami as Covid carries on

More tech firms eye Miami as Covid carries on
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Fortune International Group’s Edgardo Defortuna, Château Group’s Manuel Grosskopf and a rendering of the project

Fortune and Château score $119M refi for Sunny Isles condo project

Fortune and Château score $119M refi for Sunny Isles condo project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...