What We Do

Homebase makes it incredibly easy for people to invest in tokenized residential real estate. Through our platform, users can invest in rent-generating residential real estate for as little as $100 and gain the upside of investing in high quality real estate assets. We’ll challenge the current status quo in real estate investing by leveraging disruptive technology, making all data open and transparent and capitalizing on community leverage.

We will be tokenizing real estate properties via security token offerings (STOs), a legally-compliant way to tie real world assets to on-chain tokens, and offering them on our platform so that anyone can become a real estate investor. The resulting property tokens will become a bridge between liquidity in decentralized finance (DeFi) and returns on assets in traditional finance.

The idea of fractionalization of real estate is certainly not a new one. For many, fractionalization has been in the form of shared interest in business partnerships or joint ventures to purchase properties. For others, fractionalization has been co-investments with friends. These sort of agreements rely heavily on trust and relationships (either business or personal) that are built up over time. No matter what, participation in these co-investments require at least one part of the team to take a leap of faith or pay a premium for trust.

What if we could make this sort of ownership truly trustless?

Trustless Technology

The driving thesis of blockchain centers around the need for peer-to-peer systems for the verification of information and transactions in a trustless manner. When paired with a largely immutable asset such as real estate, there is an opportunity to make ownership trustless and allow platforms, such as Homebase, to remove the historical cost premiums placed on trust. Removing these premiums ultimately reduces the barrier to entry.

Additionally, using blockchain technology allows us to tap into a largely evolving ecosystem with existing payment rails to reduce transfer costs, tap into built-in liquidity, and build in safeguards for users directly into our ownership tokens. The end result is an opportunity for anyone to invest in real estate, no matter their pre-existing relationships or budget.

Data Transparency

By using blockchain technology, Homebase users and investors will also have access to transparent sources of data to all homes tokenized on the platform to showcase things like month-to-month price changes, transaction history, and legal documentation. Our aim is to bring information parity between institutions and retail investors. Ultimately if local investors have the same information as institutions, they can make better informed investment decisions.

Community Leverage

As mentioned earlier, real estate is quickly becoming unaffordable throughout the country. In our quest to democratize access to real estate investing, all home offerings on our platform will be funded via equity in a community raise. By providing the tools for individuals to pool their capital together in order to invest in real estate, we can capture the power of what we call community leverage. By definition, leverage is the use of debt (borrowed funds) to amplify returns from an investment. Traditionally people rely on banks to take on leverage for investment, but need to qualify for certain loans by either having enough collateral, a good enough credit score, or high net worth. Not everyone has the means to do that.

Community leverage is the idea that communities of people who invest together are able to achieve the same purchasing power as institutions. This will allow anyone to invest at these same leverage to value multiples without needing a bank. In the future, we will partner with loan providers to give users the option to stake their ownership share in a property in exchange for debt. In this way, we let individuals decide whether they want to take on leverage on their investment, one of the core tenets of real estate investing.