rextin the words of its co-founder Álvaro Castro Burgueño, is a company specialized in the tokenization of assets and real estate investments that seeks to democratize access to investments of this type through the application of blockchain technology.
Thanks to this innovative approach, anyone can invest in real estate located in Miami, or anywhere in the world, in a simple, flexible and safe way.
Thus, from Argentina, Chile, Paraguay, Uruguay or anywhere in the world, today you can invest in a business that moves millions of dollars. With a smart contract and multiplicity of payments: from credit cards, transfers in dollars, via AstroPay or with digital dollars such as USDT, USDC, Bitcoin or ETH, in four simple steps and from the cell phone or digital device you can make the investment and become the owner of an investment in, for example, Miami.
Benefits and advantages of property tokenization
The tokenization of a property implies dividing it into small proportional parts called “tokens” that are registered and negotiated in a chain of blocks (blockchain).
It is a technology that provides unique security conditions in data storage, since once the chain of blocks is closed it cannot be modified. In addition, its storage is done in a decentralized manner, which makes it more difficult to attack the server that contains the information that is intended to be protected.
By dividing a property into tokens, the benefits are maximized since it reduces the entry barrier to the different types of markets, managing to democratize access to investments. In this way, investors of various profiles are allowed to participate in the world real estate market. Likewise, transaction costs in the market are lower and the process is faster, since everything is done digitally, without intermediaries and safely.
On the other hand, the tokens are also easily exchangeable, giving investors the possibility to sell them quickly, generating liquidity in illiquid markets. All transactions are registered in the chain of blocks, which guarantees security, traceability and confidence in the process.
Hotel Sorrento Villas: a paradigm shift in the Miami real estate market
The Miami real estate market, known for its attractiveness and profitability, has historically been an exclusive territory for investors with large sums of capital and specialized knowledge in the subject matter.
However, a new project promoted by the Rext company will change the landscape of the real estate market in Miami, by allowing investors from all over the world, including Argentina and Latin America, to access the Miami real estate market with a minimum initial investment of as little as only one thousand dollars through the use of state-of-the-art services and technology.
Thus, the Sorrento Villas Hotel, located in the heart of Miami Beach, is presented as the first asset tokenization project of the Rext company, providing a unique opportunity to invest in the US real estate sector.
This tourism venture, which is already in operation, will experience a significant reform and expansion in its structure and economic and commercial movement.
In this sense, the complex currently has twenty-one apartments, but thanks to this ambitious project that will be carried out through the tokenization of investments, the objective is to increase its accommodation capacity to forty-nine units.
With a total investment of four million dollars, the project seeks to convert the complex into an exclusive high-end boutique hotel that meets the most demanding standards of the tourism and hotel industry.
After carrying out the project, it is expected that once the works are completed, the hotel will reach a valuation of close to sixteen million dollars.
Investors, in addition to the benefits and confidence that the blockchain implies in terms of security, will be able to enjoy an initial economic return of 6% per year in dollars and free of taxes during the first stage of the development of the project. Subsequently, the return can vary between 3.5% and 8% per year depending on the profits generated by the hotel.
As the tokenization of properties continues to expand, it is expected that the real estate market will continue to evolve at the same time, allowing small investors to participate in projects of great economic importance. According to the World Economic Forum, it is estimated that by 2030 10% of world GDP will be tokenized.
This is in tune with the main purpose of the Rext company, which seeks to make the investments of its clients viable in an agile, safe and profitable way, with the Sorrento Villas hotel being the first step on a long path towards development.
