How did our business model idea come about?
BRET was born thanks to Juan Manuel Alvarez, an industrial engineer with a Master’s in International Real Estate and Finance. Thanks to his 18 years of real estate experience in Florida, Juan integrated his knowledge of real estate and finance to develop his Harvard thesis in Fintech on the business model now known as BRET Real Estate Tokenization.
Blokhaus Real Estate + Investments, the sister company of BRET, conducts a financial, legal and physical review of the properties before making or accepting any offer BRET later issues to international investors. As a result, BRET has become a business model that aims to help people reduce the friction of entering the real estate world and transform properties into liquid negotiations that, instead of taking months or years to sell, are achieved in a matter of 60 days.
Platforms we use
Combining blockchain with the real world runs more efficient processes. Thanks to several consultancies with Security Token Group consultants, we managed to define the best platforms and allies that fit the needs of our clients.
- We selected Securitize, an ally registered with the SEC, for the issuance and management of the tokens. Securitize also handles verifying the identity of users.
- Securitize is also compatible with the Avalanche we chose as the blockchain to create our smart contracts.
The idea of dividing properties has been developed for a long time through crowdfunding; however, we want to take it to another level with blockchain. Thanks to the block network, processes are done more efficiently. No paperwork is required to sell a property, and the closing is made instantly from anywhere in the world through alternative trading systems. It practically works like a stock market stock but reduces risk, volatility and high commission costs.
Legal and regulated investments
To make the sale of tokens effective through the blockchain, we rule by Regulation S and Regulation D issued by the SEC, allowing the world public to access our offers.
To validate the information of the properties before investing, you can check our page showcasing appraisals made by third parties and the formation certificates of the different corporations. This is how we guarantee our clients have the asset’s actual value at the time of investment.
Analysis to select the properties
When choosing the best properties, we conduct a comparative market analysis to understand the optimal negotiation price of the property; then, we do a sensitivity analysis to understand where the property stands financially and how we can maximize returns. Finally, the property’s valuation projections are created taking into account the area, the type of asset and, in general, the market. In addition, throughout the process, the risks of each asset are meticulously evaluated in terms of the area and income generation depending on its tenants.
After going through all the filters and the different people involved in the analysis, we decided to make an offer on a property to ensure that we offer our users the best investment opportunity.
End of the investment process
The only filter in the purchase process of a token is the KYC (Know Your Customer) or identity verification filter, which, compared to the paperwork of buying a property, legal expenses, notary expenses and time of acceptance of possible credits. Therefore, it allows us to reduce to only a fraction the time of buying and selling this type of good. In addition, the low investment amounts expand the population that can participate in this model.
After having passed and approved the investment process, the client is officially an accreditor of a rental income that deposits automatically in his electronic wallet, besides the value of his fraction of the property.
What are you waiting for to be part of the evolution of investments in the real estate market?
Go to our website and start investing from just $100 in some of the most attractive properties in the United States.