How to Generate a Passive Income Through Real Estate Tokenization Through RealT with Remy Jacobson: An EOFire Classic from 2022

0:01Light that spark fire nation JLD here and welcome to entrepreneurs on fire brought to you by high level, the all-in-one sales and marketing platform. On today's classic episode, we'll be breaking down how to generate a passive income through real estate tokenization. To drop these value bombs, I brought Remy Jacobson into EO Fire Studios. Remy has been the chief executive officer at J-Cube Development since 2012. And today, Fire Nation, we will be talking about how it's all about working, not just working, rather smart working. How to invest early in Realty is DeFi and that is decentralized and oh, so much more.

0:40And the big thing for sponsoring today's episode goes to Remy and our sponsors. Fire Nation, this is your year to get unstuck and to grow a successful business. Attend the world's highest rated business growth workshop taught personally by Clay Clark and now featuring football star Tim Tebow and President Trump's son, Eric Trump at thrivetimeshow.com slash EO fire. Again, request life-changing tickets today at thrivetimeshow.com slash EO Fire. Fire Nation, are you ready to launch your own sports betting platform? Odds Jam's real-time API is trusted by companies big and small, from lean startups to major players like StatsPerform and sportsbet.io.

1:18Visit oddsjam.com slash odds-api to learn more and talk with their team today. Mention promo Fire Nation to receive an exclusive discount. Are you ready for the ultimate all-in-one platform for entrepreneurs, marketers, coaches, and agencies? Build funnels, automate follow-ups, manage clients, and even white-label your own software. Say hello to our featured partner, High Level, and visit highlevelfire.com to start your free trial today. Remy, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with. Hi, Fire Nation. Thank you for having me.

2:05Most people would disagree with what makes you successful is work. The only place that I know where work comes before the word success is in the dictionary. and I believe that it's all about working, but not just hardworking, smart working. I like that because Fire Nation, you can work really, really hard at something and if it's the wrong thing, you're just working really, really hard. And it kind of goes along with what we're talking about here today about generating passive income through real estate tokenization. So let's give Fire Nation, Remy, a summation of your company, Realty. What is it?

2:46What does it do? What does Fire Nation need to know? Realty was created in 2018 by my brother and myself. We are real estate investors for the last 30 years, and we are in the blockchain space for the last nine years. At that time, it was not blockchain, but it was only Bitcoin. Looking at blockchain, we saw the opportunity of shattering the barrier of entry of real estate investment. Usually, when you want to buy a property, you're going to have to go to the bank. They're going to want to review your financials, your credit score. They're going to want you to put a deposit. And then if you're lucky, you might get a loan at a decent rate.

3:23If you're unlucky, you're going to get a loan, but at a rate that will make the operation completely invalid. And real estate has been generally reserved for the elite investors who had a few hundred thousand dollars or million dollars to invest. With Realty, we shattered that barrier of entry to$50. Our deals are all made cash. They all paid the yield that an institutional investor would expect to do on their deal, but reserved for retail investor open to the world. As of$50, you could start earning the same interest rate, the same cap rate that an institutional investor would invest without leverage, without the risk of foreclosure from a bank.

4:02The only thing that needs to be paid is taxes and insurance and your property is guaranteed. Of course, your return might vary it, but at least your ownership will never go down. A brick is a brick. There might be fluctuation, but you won't lose at all. So we believe in real estate and my family, my brother and I, and we wanted to open this to the world. We have done it so far with 180 properties, over 600 units in the US. We have tokenized all those properties. and realty's big difference because you could tell me we could do this with crowdfunding. Yes, you can. But with crowdfunding, you're married to the deal.

4:43And with tokenization, you could buy a property on Monday, collect your rent Tuesday, Wednesday, Thursday, Friday, and sell it on Saturday and be back in US dollars if you wish. On top of it, if you want to loan, we're going to be launching some very interesting product in 2022. But we'll get to that a little bit later. And this is fascinating because Fire Nation, as Remy did share earlier, real investing for the longest time has unfortunately just been a rich person's game. I mean, you needed a lot, a lot of money to invest in real estate. So let's get real specific because even I don't quite understand.

5:19I mean, you said even the words$50, like with just 50 bucks, you can invest in real estate through Realty. How? How does that actually happen? What does that transaction look like? You go on realty.co, you select the property that you like or the property that is available at the time, and you could go and invest a fraction of ownership. You will be an owner of the LLC that owns the property because the city catasters are not on blockchain yet, so it's hard to tokenize, but the LLCs could be tokenized and each LLC owns one property. So you go on the platform, realty.co, you click on the property you choose, you press select, you could pay with your credit card or with cryptocurrencies through Coinbase and through Request Network.

6:08Your transaction takes a few minutes to be validated and your token, which is a representation of your ownership of the LLC, is delivered to your wallet. You are the custodian of your ownership. We hear the word DeFi being thrown around, not just a little bit, Remy, but a lot. So number one, what the heck is DeFi? Let's really break that down for our listeners. And how are you playing in this ecosystem? DeFi is decentralized finance. Decentralized finance came to life in 2018, 2019 and really started sparkling up in 2020. It's really, I'm doing the same thing that we do at Realty, is giving opportunity to anyone to be able to invest in any type of financial products almost and to be your own master of your finances.

6:59It's removing the middleman. As long as you have a Web3 wallet, a MetaMask, or any other of the type, you're able to interact with many different protocols. So for realty, what is our DeFi integration? How are we seeing this? Well, first of all, we are DeFi because we're decentralized. We don't have one person owning the whole property. We have 900 to 1 ,200 participants per property from 60 different countries. And all those people are a master of their own decision. They want to buy the token, they buy it when they want. They want to sell it. They sell it at the time they want. To push it further, we are able to pay rent weekly right now, and we're going to be paying rent per block.

7:45What do I mean per block? It's on the blockchain. Every few seconds, you mine a block, and the rent payment will be distributed by block in the very near future. So you no longer have to wait for the end of the month to get your money or anything. It happens every few seconds in the future. On top of it, in a few days, we're going to be launching a lending platform powered by Aave. Aave is the leader in DeFi lending today with a marketplace that has over$26 billion of liquidity. And we're launching a platform powered by them where you're going to be able to deposit your ownership of the real estate and get a 50 % loan on your asset within a matter of seconds.

8:28This is one of the few integrations that we're working on and that we're launching with some decentralized insurance on the property on vacancy with Opium Network as well. We're working at some integrations with OneInch, which is a DEX, a decentralized exchange. We are already listed on Uniswap where we were the first security token to be able to be exchanged on decentralized exchanges. So it's really creating liquidity and putting people in control of what they want to do. There is no more lockup period. There is no more, you need to sell the whole assets to come out because real estate is great investment.

9:06But the biggest downside of real estate is what do I do when I need money? How do I sell it? It could take a long time because it's one house or one building, it's usually one buyer. And they do a long due diligence, and then they need to qualify for their loan. And that could take 45, 60, 70 days, depending on the size of the transaction. Here, you don't have this anymore. You are liquid. You're collecting the same yield as if you were not, because it is a consortium of investors who will buy from each other and new investors taking over your positions if you want out. Well, I love how you broke down DeFi.

9:43So thank you for that. And I also love personally how there's just this no lockup period anymore because Fire Nation, when you can be flexible with your money, when you can actually have liquid assets that are at least semi-liquid and you can move them around at your whim, opportunities won't be missed at such a level they would be otherwise. So we're going to be talking about a lot of cool things when we get back Fire Nation from thanking our sponsors. Okay, let's talk about a platform that's completely changing how entrepreneurs are running their business, and they are also our featured partner, HighLevel.

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12:39Fire Nation, this is your year to get unstuck and to grow a successful business. Are you looking to learn the proven processes and success systems that have been used to create thousands of millionaire success stories? See thousands of success stories and testimonials from real people just like you who Clay Clark has mentored and coached into prosperity at thrivetimeshow.com slash eofire. Clay's proven business coaching program is month to month and costs less money than hiring a minimum wage employee. Yes, it's month to month and costs less money than hiring a minimum wage employee. Schedule your free personal 13-point assessment with Clay Clark himself today at thrivetimeshow.com slash eofire because Clay only takes on 160 clients and only allows 300 attendees to each business conference.

13:19You will interact with Clay directly. See thousands of real success stories and learn about attending the Thrive Time Show two-day in-person workshop featuring football star Tim Tebow and President Trump's son, Eric Trump, today at thrivetimeshow.com slash EOfire. Become the next success story. Schedule a free consultation and request tickets to join football star Tim Tebow and President Trump's son, Eric Trump, at Clay Clark's next business conference today at thrivetimeshow.com slash EOfire. So Remy, we're back and we're going to talk about a governance token, specifically REG, R-E-G. But before we go down that rabbit hole, What are your plans for 2022?

13:58Break those down for us. 2022, our plan is to launch the lending platform in the first weeks of 2022, to optimize our decentralized insurances protocol with Opium Network, to have the rent paid per second per block, and also to launch the REG token. The REG token stands for Real Estate Governors. As you know, real estate is a very niche market. And we cannot be experts in every single market around the world. And Realty deserves the attention of investors, of sellers and investors from all around the world. So the reg is really a protocol that will allow third party to offer our community their product and their niche market and their market of expertise, as well as giving a standard of transaction.

14:51What would be the fees that they can charge? How will the transaction do? What are the due diligence documents that need to be uploaded? Furthermore, it's putting into control the community. As we see it in DeFi, one of the most important aspects of the business is the community. It's community-owned, it's community-driven, and it's community-governed. So the reg will allow people to decide with whom they want to work, where they want to buy properties, what cap rate they want to invest, review the due diligence, not only on the asset, but also on the sponsor that will be bringing the asset before it goes live on the platform.

15:28That's one of the advantages of the REG also as creating quite a bit of liquidity on secondary market for all those properties. Now, Fire Nation, I teased this in the intro. I just teased it a couple of seconds ago, but we're going to talk about a governance token, kind of like what you did with DeFi, Remy. I want you to break down what a governance token is, what REG is, your governance token, and what we need to know. Governance token is giving the vote and the power to the community. So let's take easy numbers. If you have 100 tokens, 80 of those 100 tokens will be owned by the whole community.

16:06They will take the decision on everything that happens from the treasury to the products, to the maintenance, to the salary of the people working within this DAO. So a DAO is a decentralized autonomous organization, which a governance token comes from. And that will govern the whole ecosystem of the real estate governance. So the community will vote on new implementation, on properties, on loans, on treasury. And it's really giving control to the investors instead of giving it to the leadership of a company. It's putting people in charge of their own future and letting a few hundred people being able to decide, or 3 ,000 people being able to decide through a voting system what they want to do, how they want to do it.

16:59So what does Fire Nation really need to know about just tokens in general going forward? Like if we are entrepreneurs, we're small business owners, how are tokens going to be part of our future? I would put it the other way. Howard Token is not going to be part of your future in the next two years or five years. I just don't see it happening that any business will not have a sort of token, a governance token, or any type of blockchain integration because of transparency, because of security, because of custodianship. I don't see how businesses will do without having a blockchain integration. It could be as simple as a pair of shoes.

17:42You know what? You want to know what is the shoes made of? Where is the cotton for the shoes was cultivated? Who did it? All this could be put on the blockchain. On real estate, it goes even much further. You could put the whole historical of the property on chain. You could see when it was bought, when it was sold, how many investors in it, what is the yield, repairs that were done, repairs that needs to be done, budgeting. All this could be voted in by the owner through the governance. Remy, I want you to bring this home for us. You shared a lot about a lot today. We talked about DeFi. We talked about Realty.

18:20We talked about governance tokens. We talked about your plans for 2022. What is the one thing that you really want to make sure Fire Nation gets from everything that we talked about here today? And then give us a call to action to find out more about you, your business, Real T. That's just the letter T, Fire Nation, Real T. And then we'll say goodbye. Invest early. Invest small. It accumulates quickly. When in real estate, not only you have the yield, but you have the capital appreciation of the asset. $50 today could be$5 ,000 in 20 years. $500 today could be a large amount of money. So don't be afraid because you're going to make a penny a day on a$50 investment.

19:07It adds up. Invest early. Invest in passive investments to have a nest for harder days. That's my biggest advice to everyone. I started investing in real estate very young, and I got very surprised one day when I looked at my balance sheet and say, whoa, do I own this? Did I do this with such small amount of money when I started? And yes, it did because real estate appreciates, especially the real estate that I like, which is residential. I believe everybody needs a roof. Not everybody needs an office. The pandemic has shown us this is accurate. How can Fire Nation connect with you, your company, and what you have going on and any call to action you have, share that now.

19:47We are available on most social medias, on Twitter, on Telegram, on Discord. We are very active and responsive. If you join our social media, ask for me directly. I'll answer anyone and every one of your questions. Our community is very active in answering you. Follow our news. We're opening up new markets monthly. We have property launch on a weekly basis between one and five properties a week, depending on what we're able to source and analyze. And go look at Realty.co. I think you'll like what you see. Fire Nation, you're the average of the five people you spend the most time with. You've been hanging out with RJ and JLD today, so keep up that heat.

20:30Head over to eofire.com, type Remy, R-E-M-Y in the search bar. The show notes page will pop up with everything that we've talked about here today. Best show notes in the biz. Remy, thank you, brother, for sharing your truth, your knowledge, your value with Fire Nation today. For that, we salute you and we'll catch you on the flip side. Thank you, John, for having me. Thank you, Fire Nation, for listening. Hey, Fire Nation. Today's value bomb content was brought to you by Remy. And Fire Nation, over the last decade, I've interviewed more than 3 ,000 of the world's most successful entrepreneurs and I've created a revolutionary 17-step roadmap to your financial freedom and fulfillment.

21:08I put it all into my first traditionally published book, The Common Path to Uncommon Success. Personally endorsed by Seth Godin and Gary Vaynerchuk, The Common Path to Uncommon Success is the step-by-step guidance that you need to achieve the lifestyle of your dreams. Visit UncommonSuccessBook.com, order your copy and I'll catch you there or I'll catch you on the flip side. Fire Nation, this is your year to get unstuck and to grow a successful business. Attend the world's highest rated business growth workshop taught personally by Clay Clark and now featuring football star Tim Tebow and President Trump's son, Eric Trump at thrivetimeshow.com slash EO fire.

21:50Again, request life-changing tickets today at thrivetimeshow.com slash EO fire. Fire Nation, are you ready to launch your own sports betting platform? Odds Jam's real-time API is trusted by companies big and small from lean startups to major players like StatsPerform and SportsBet.io. Visit oddsjam.com slash odds-api to learn more and talk with our team today. Mention Promo Fire Nation to receive an exclusive discount. Are you ready for the ultimate all-in-one platform for entrepreneurs, marketers, coaches, and agencies? Build funnels, automate follow-ups, manage clients, and even white label your own software, say hello to our featured partner, High Level, and visit highlevelfire.com to start your free trial today.