Frequently Asked Questions
Real Estate Tokenization
Vertalo Real Estate (VRE)
As the largest asset class in the world with a combined estimated value of over $228 trillion, investing in Real Estate has many advantages over investing in stocks, bonds or mutual funds. The most notable benefits of investing in Real Estate and Real Estate-based financial products typically include: a predictable cash flow and ability to generate passive income, an improvable asset with the ability to appreciate in value, and an array of benefits surrounding leverage capabilities and tax advantages.
However, Real Estate investment transactions remain frozen in time, conducted in the same manner as they have been since the late 1900’s. Using outdated infrastructure, paper based processes, and multiple third-party intermediaries, the real estate sector has internalized significant structural inefficiencies. These traditional practices create unnecessary friction in transactions, impacting value and liquidity, while market participants have previously had no option but to tolerate the complex regulations and processes associated with real estate investments.
Vertalo’s platform is positioned to modernize real estate transactions and deals by transitioning them into the digital age, making significant improvements in real estate transaction efficiency, cost, security and liquidity. Vertalo is using blockchain-based technology to eliminate the largest inefficiencies associated with real estate capital raising, management and investing.
Founded in 2017, Vertalo is a software company that connects and enables the digital asset economy. Process driven friction in private markets present challenges to illiquidity, speed, record accuracy, and market efficiency. As an SEC-registered transfer agent, Vertalo connects investor and asset data to broker-dealers, custodians, and sources of liquidity, thereby reducing this friction. Vertalo is the data management platform that connects shareholder and issuer data to ecosystem partners via API’s.
In the traditional real estate landscape, Issuers must deal with the complexities of asset and investor management, lengthy ownership transfers, regulatory investor compliance, expensive business operations, maintaining cash and dividend flow, security against fraudulent transactions by bad actors, and an overarching obstacle of liquidity complications. The Vertalo Real Estate (VRE) platform provides a comprehensive solution to each of these areas.
The Vertalo Real Estate (VRE) platform is
- Leveraging next generation ledger technology behind a new digital interface to optimize efficiency in investor data & property management
- Implementing smart contract technology to expand the capabilities of transactions, improve cash flows, and shorten cycle times
- Maintaining bank-grade security & regulatory compliance by employing cryptographically secured decentralized ledger (commonly referred to as blockchain) technology.
The overarching goal through all of these procedural improvements is to drastically increase liquidity in the real estate Industry. This introduction to the Vertalo Real Estate (VRE) platform serves to educate both real estate investors and issuers, establish capabilities, and invite the comment and expansion upon ideas related to the tokenization of real estate assets.