Rental Property News 1st Blockchain Edition

[00:00:00] Speaker A: Welcome to Rental Property News, very first Blockchain Edition. I'm Heather Anderson. Let's get started on this inaugural voyage. Our show usually ends with a history perspective because in order to prepare for the future, we must first learn from the past. However, we're going to be leading with, with the past today because I believe you will see many overlays for what is to come with blockchain technology. And I hope this helps you wrap your brain around it. Let's get started. This is the hit talk show Late Night with David letterman back in 1995. Let's take a look. I think you know who this gentleman is. He looks a little grayer like this, this Image Today in 2025. But in 1995, 30 years ago, this is what they were talking about. [00:01:05] Speaker B: Let's. I have like a million things to ask you. First of all, if you can describe for us succinctly what it is that you did better and first, that put you where you are today. What was the core of this? What was the seed? What is the essence of Microsoft? When and how did that happen? [00:01:23] Speaker C: Okay, I think there's a lot of elements that go into it. A vision of what software could do. [00:01:29] Speaker B: What was your vision? [00:01:30] Speaker C: Well, a computer on every desk and in every home. [00:01:32] Speaker B: Right. I don't have one on my home or in my desk. [00:01:34] Speaker C: We're working on that. [00:01:35] Speaker B: Vice versa. But there was more to it than just that vision. You must have known. How early did you realize you knew something that could be exploited to this extreme? [00:01:45] Speaker C: Well, there were a small group of people who, who saw what this chip could do as it became more powerful. And we sort of felt like a special group because we were all working on it. And we thought, someday these big computer companies are going to have a huge problem and this thing is going to reach out to the entire world. But every year we just kept hiring more people working on it. It's been 20 years since we started it, and we're not really to the full realization of that vision even today. [00:02:11] Speaker B: But this came to you more or less when you were in high school. You were so far ahead of people in your high school class with knowledge of computers that the school hired you, didn't they? [00:02:21] Speaker C: That's right. I did the school scheduling. It was a very nice position to be in. [00:02:27] Speaker B: And how did you make that work to your advantage? [00:02:29] Speaker C: Well, we, we had 80% boys and 20% girls. But in my classes, they were all girls. [00:02:36] Speaker B: Just you. Because you worked the schedule into the. There you go. Why, why don't I have a computer. [00:02:51] Speaker C: We need to find an application for you. Part of your problem is you have too many assistants. [00:03:05] Speaker A: Listing your house on the market isn't the only way to sell your house. Selling to us is much faster. Easy. [00:03:12] Speaker B: I like having assistants. [00:03:13] Speaker C: Well, they're like human computers. They're doing everything for you. [00:03:18] Speaker B: Right. [00:03:19] Speaker C: Maybe you should let them have computers. [00:03:20] Speaker B: But I think some of them do. I certainly haven't met all of them, but I think some of them do. But I think about this. And what about this Internet thing? Do you know anything about that? [00:03:31] Speaker C: Sure. [00:03:32] Speaker B: What the hell is that exactly? [00:03:35] Speaker C: Well, it's become a place where people are publishing information so everybody can have their own homepage. Companies are there the latest information. It's wild what's going on. You can send electronic mail to people. It is the big new thing. [00:03:50] Speaker B: Yeah, but, you know, it's easy to criticize something you don't fully understand, which is my position here. [00:03:55] Speaker C: Go ahead. [00:03:55] Speaker B: But I can remember a couple of months ago there was like a big breakthrough announcement that on the Internet or on some computer deal, they were going to broadcast a baseball game. You could listen to a baseball game on your computer. [00:04:08] Speaker A: And. [00:04:08] Speaker B: And I just thought to myself, does radio ring a bell? You know what I mean? [00:04:19] Speaker C: There's a difference. [00:04:20] Speaker B: There is a difference. [00:04:21] Speaker C: It's not a huge difference. [00:04:22] Speaker B: What is the difference? [00:04:24] Speaker C: You can listen to the baseball game whenever you want to. [00:04:27] Speaker B: Oh, I see. So it's stored in one of your memory deals. [00:04:30] Speaker C: Exactly. You talked about earlier. [00:04:33] Speaker B: Do tape recorders ring a bell? Yeah, I just don't know. [00:04:42] Speaker C: What can you. [00:04:42] Speaker B: Just knowing me, the little, you know, me now, what am I missing here? What do I need? [00:04:47] Speaker C: Well, if you want to learn about the latest cigars or auto racing statistics. [00:04:52] Speaker B: Well, you know, I've got that covered. I subscribe to two British magazines devoted entirely to motorsports and I call the Quaker State speed line about 2 times a half hour. So now would the computer give me more than I'm getting? [00:05:06] Speaker C: That way you can find other people who have the same unusual interests you do. And you mean. [00:05:19] Speaker B: You mean the troubled loner chat room on the Internet? [00:05:24] Speaker C: Absolutely. [00:05:29] Speaker B: I think one day I'll get one of these deals. But I, you know, I've played with them and. And then you type it in and then they get that thing, that little arrow. Is that the arrow you want? [00:05:36] Speaker C: You bet. [00:05:37] Speaker B: And then it's just, you know, it's like, oh, I get it. It's an eye test. What are we. Tell me about your house. Are you in your new house? [00:05:45] Speaker C: Yet, no, I'm still building that. [00:05:48] Speaker A: Tell me, dear friend, where will you be on the conversation presently and in the future? Will you be on the Bill Gates side, on the innovation side? He, he was literally building the future, or will you be on the Dave Letterman side, the joke telling side, and maybe even the naysayer side? I don't know. You decide. You decide, friend. We will have friends on both sides of the spectrum. Where will you fall? One thing Bill Gates said, his mission, his goal, his objective, his vision was to have a computer on every desk and at home. And Dave Letterman didn't have any computer in 1995. Do you think David Letterman has computer today? And do you? And do I? And does everyone have multiple versions of a computer on their wrist, on their hand, in their phone, on their desk, on their work desk, on their school desk, for their children, in an iPad, in a Kindle, a variety of different kinds of computers? And then did Dave say the Internet thing? Do we use terms like that today to describe blockchain, the blockchain thing, the crypto thing? What kind of words are you using? Your words matter. So you get to decide how you want to describe what you're trying to understand and communicate and learn from others, and what side of the adoption cycle you will be on. There is always an adoption cycle of every single new thing that goes to the marketplace. When he talked about broadcasting baseball, do you know that Mark Cuban began a company where he broadcast games? Just like Dave Letterman was saying, have you heard of a radio? Well, to Bill Gates point, yes, but it records the game and you can watch it in 2 o' clock or 5 o' clock or 8 o' clock or next Saturday or two weeks from now. And another part he didn't communicate was that you can watch it globally. I'm not sure you can get radio channels everywhere on the globe. And community, he mentioned community. Community would come about a decade later, wouldn't it? Social community in a bigger way. But honestly, communities began earlier than that and the Internet was the catalyst. So I want you to notice here, 1995 is when this interview was. This is when David Letterman hadn't barely heard of a computer. But if you'll notice here, Bill Gates launched the company in 1975. 1975. So this was 20 years later when David Letterman had barely heard of a computer. Bill Gates had been building them, working on them, creating them, etc. As you can see, Apple launched one year later. Now, bitcoin is an interesting also time frame element to, to pay attention to because as you can see, the bitcoin white paper, which we'll get into white coin, white in a little bit, but white. The bitcoin white paper was published in October of 2008 by an individual or group under the name of Satoshi Nakamoto. You might have heard of this name. Nobody. Well, I'm sure somebody on this planet knows who or what that is and who the alias belongs to, but. But I doubt you do, and I know I don't. So to us, it is anonymous. But the bitcoin white paper laid the groundwork for a fundamental change in the execution of global payments and the transformation of entire industries in terms of data management. So what we're talking about today, in June of 2025, started 17 years ago in October of 2008, just like Bill Gates started building 20 years before David Letterman even knew or understood or heard about the word computer and Internet. But my dear friends, we must remember, history doesn't repeat itself, but it rhymes. Mark Twain, another banger by Mark Twain that was true 100 plus years ago when he said it, and it's still true today. So remember, history doesn't repeat itself, but it often rhymes. So this is our next generation cryptography, Blockchain defy, tokenization, smart contracts. These are the next generation. This is Web3 technology. We're going to get into that. What does all that mean? Words matter. And remember, friends, so we can understand. Real estate value is in 1995. The average. I'm sorry, the median home price in. In between 1990-2000 was 80,000 to 120,000. Okay, we don't have a metric for 1995, which is that midway point, but let's assume it's in the middle. So let's just call it $105,000. And today, the median home price in America for a home was 420,000. So that is literally 400% in 30 years. 400% in 30 years. So keep that in mind. Real estate always goes up. Let's move on to our next story. This is from a blog site called Medium. This company is called Home Unity. What is Home Unity? HRPT is what their coin is called. We're going to get into what that is here in a second. Home Unity is a decentralized. What does that mean, decentralized? It means it's not regulated by a financial institution like Vanguard, Fidelity, bank of America, Wells Fargo, other private hedge funds, even. Or Chase bank, even. It's not d. It's decentralized. So it's. It's managed by this company, Home Unity, whatever they are, they are a decentralized blockchain which we're going to get into. What blockchain means bit based real estate investment cooperative. It specializes in fractionalizing and tokenizing, which is sort of the same thing. They, they, they basically, they basically take a building and they cut it into pieces, okay? It could be an apartment, it could be a hospital, could be a hotel, which is what they're trying to sell. And they're cutting it up. So it's one hotel, which is usually one. One piece, one title. Okay. And they're cutting it up into multiple pieces. It's kind of like the, it's gonna be like a bunch of shares in a way. So they're fractionalizing it, they're selling pieces of it, okay? And then, and then they're, they're selling those pieces and those pieces that they're selling, they're called tokens, okay? Slices, pieces, parts, coins, fractions, okay? Even fractions. Token, token is a piece, it's a part of a whole. Okay. Kind of like, kind of like a quarter is a whole of a dollar. Okay? Four of those equals one dollar sort of real estate. Okay? So they're, they're specialized in fractionalizing and tokenizing real estate while also serving as a property management company. Hrpt Home Unity Revenue Participation Token that is used for tokenized ownership. The token represents ownership rights to future profits of a company from property development to rental income. Home Unity profits by purchasing the property in its entity, in its entirety and then selling it in portions. This is happening in the world. It has happened in the world, but they're doing it. What they're. Why is this new? Why are they, why is this a thing now that's being talked about? Well, because the way that the ledger, the way that the accounting is being stored is using a digital economy to do it. That's the blockchain, open ledger, open source ledger society that is in this Web3 space that. See, that's the world where we're growing and moving into, into the next generation of web blockchain technology. We're going to get to that in a second. I'm trying to describe this and explain as we go here, but what this is pitching is saying Home Unity launched its contract, okay, on December 18, 2023, creating 24 billion tokens, okay, on the Binance Smart chain. A lot of words that remember though, just like Bill Gates was ascribing to Dave Letterman and he didn't know these words. And now, now you do know These words, okay? That's all this is. It's just a new language. Everything is just words and concepts. Words and concepts. Words and concepts. And you can learn this if you want to. If you choose to learn it, you will learn it. If you don't want to learn it, you won't learn it. It's simple as that. So what you will always get out of what you put into. And that's just a law of this earth. And if you want to learn it, you will learn it. It's just words and it's just concepts. We're going to learn some of those words today. And it's okay not to know everything about this new web3world. Some people still don't even know what Bill Gates is talking about from 1995. Some of our aging out citizens that chose not to integrate with the new technology that was being presented. So this is saying this, there will be fees deducted from this project, okay? They're saying some money is going to be reserved back for maintenance and management and stuff like that. [00:17:13] Speaker B: And. [00:17:13] Speaker A: And then left over from each coin is going to be 86.1% liquidity. Okay? It's saying vesting of tokens is provided for a period of 120 months. No more than 0.8% of the maximum volume of tokens is available for sell monthly. Okay, what does that mean? Okay, I don't know. Do you know? Well, it's terms of the deal. All right? And they've talked about the terms of the deal and we're going to go a little deeper in that. Now who are these people? Who is Victor Ziddinkopf? So when you read performas and proposals. Well, this isn't a performa. When you read proposals like this, it's up to you to do the research. Okay, Remember how we talked about decentralized? Well, another element of decentralization is there's no regulation. When there's no regulation, that pretty much means we're in a global 24. 7 market that anybody can join anywhere around the world and they can sell you whatever. They can make a website just like this. Maybe it's real, maybe it isn't real. Maybe Victor's real. Maybe he's not real. How do you really know? It's up to you to do your research before you make an investment in anything. So this guy saying he's the co founder and the CEO with a decade long background, okay, and then this other guy, Kupokto and Aglansky and Kerry Yukina are the four partners, I believe and they're saying, hey, what makes this unique? They're saying uniquely merges proven models like REITs, cooperatives, and a collaborative consumption with DLT and blockchain, propelling their evolution for greater social societal benefits. An opportunity for people to have a stable income in time to pursue their passions in real life. Okay, that's a pretty big offer. How do you they gonna achieve that? Okay, so, you know, it behooves you to read this whole offer. Okay. And then down here you can see they say, where can I find more information? They list a bunch of links. Okay, They've built a website, which we're going to go to in a second. They have a white paper. Remember earlier when we talked about Bitcoin's white paper? That's why white papers are a term in crypto, because that's one way supposedly that these cryptocurrencies can try to validate their claim of what this cryptocurrency is going to do. Some of them are out there to create returns. Some of them are out there like what are called meme coins. And. And those are just maybe sometimes those are not about creating returns. Sometimes they are. Sometimes they're games. Sometimes it's like lotteries. Sometimes it's like mementos and ways to raise money, sort of. Or give money to something that you like. Like you might, you know, buy a trading card or something like that. But we're going to look at the website and we're going to the white paper and we're going to go to the LinkedIn for the founder. Let's take a look. So, Home Unity. So Victor Zinn, Zin Zen, is saying he's connected to Home unity on his LinkedIn. Okay, looks like, I guess he either lives in Geneva, Switzerland, or I guess he does. I don't know. It says that and then it go down to his history. Here he says he's been with Home Unity for eight years. He was the founder and he was the CEO and he was the CIO in a few different roles. Looks like he did some Blockchain Advisor in 2024. He was some freelance something at Stanford. I don't even know. Who knows what that means. Yeah, I don't even know what that means. Stanford AI and Web3 Research Lab Association. So does that mean he was just a member? Says he was an invited expert. But what does that mean? I don't know. So, associated partner, cryptocurrency exchange. Self employed. Looks like he's been in this space a long time. That was in Kazakhstan and then he was a business coach in 2016, Singapore Management University, and he went to the University of Buffalo. So, and again. So I'm, I'm calling all that out because it's important to read all this stuff and try to get an idea of, of what you feel comfortable with sometimes. So another, you know, thing you need to be really aware of is with, again I mentioned that with crypto, with the defi space blockchain technology, this is open borders, this is anybody in the world, anywhere can make whatever they want. In America, most investments are regulated. There's rules, there's organizations, there's entities like the SEC that are connected to the government, the securities and Exchange Commission that regulate how things are being sold to the public. The idea, it's supposed to protect the consumer. It's not a perfect entity by any means, but at least there's some kind of order, there's some kind of regulation, there's some kind of requirements for a company that they have to follow and be beholden to before they can just go raise an incredible amount of capital. Because crypto does not have those regulations. That's why you have to be very keen, very aware, very intelligent, very knowledgeable, very research driven to make sure you're making good investment for yourself. Some people will win, a lot of people will lose. So the white paper for home unity, theirs looks like this. This, okay, bitcoins did not look like this. It was a six page paper you printed out on eight and a half by 11 and it was just words and it didn't look sexy like this at all. This looks more like a pitch deck is what I would call this, but you discern what you would call it. The more you read of these white papers, the more you'll learn and discern how different ones read and what their motive is. There's always a motive. Anybody trying to sell you anything always has a motive, that is to sell you that thing they're trying to sell you. So it's up to you as an investor to be aware of that. So it's, it's making claims. These are claims. Tokenization could save you up to 24 billion annually in trade processing fees. Okay, well, what piece of that will be yours if you're a normal person like me? Billion has nothing to do with you ever. So these are saying, hey look, these are our modern investor targets. We're targeting 30 to 45 years old. This is just a prospectus, you know, this is them running analysis and trying to predict the future and trying to say, hey, come Take this ride with us. We think there's growth. Does this mean anything to you? Does this strike you okay, they. Their office is in the Dominican Republic. What does that mean? And then the cryptocurrency white paper is a comprehensive document outlining the technical and economic details of a specific cryptocurrency project. It serves as a guide for potential investors, users and developers, explaining the project's purpose, how it works, and its potential impact. Essentially, it's a technical blueprint and marketing tool combined, aiming to attract interest and investment. So be aware and remember, Bitcoin legendary white paper was posted to a mailing list for the first time October 31, 2008. Well, the first block on the blockchain was mined in January of 2009, irrespective of which date you follow. As a university, crypto followers in general keep them close to their hearts. So remember that the white paper for bitcoin is different than obviously the one we just looked at. And as you look at more, others will be different too. So let's check out the website for HomeUnity IO. We offer the best services. So at the top it says, it's an ocean of possibilities. Turn your dreams into reality with us. And what they're trying to sell is a hotel. Okay. Another thing about this particular token offer is they're saying your investment is secured on our proprietary blockchain, ensuring transparency, traceability, and unparalleled security. So that's another element here, that they have their own blockchain. It's not a public blockchain like the Ethereum blockchain. I'm sure you've heard of Ethereum. You've definitely heard of Bitcoin. The bitcoin blockchain ripple has its own blockchain, but they have their own blockchain. So their coin on their blockchain. Okay, that would require additional research to understand what that means. As you grow in your knowledge and your understanding of this new web3world, let's click on choose property. So this is what the offer is. It says one asset is offered. Now it says, price from us one USDT yield 52%. Don't know what that means. Let's click on it. So this picture, does this look like AI to you? I don't know. Does to me. You discern what, what it looks like to you. It says the name of this place called Bali Wing. And the raise is 2.5 million US DT, which is the US dollar, basically token. The projected revenue, rental income and asset growth is 52%. These are just Numbers. But I think this is interesting. They've only. They've only. So it looks like they've only sold one token is what this looks like to me. And they're also saying, I'm sorry, I thought this was a Hotel. It's 15 apartments in Bali. It's in Indonesia. Bali. So do you want to be in Indonesia? Do you know what meter squared means? I don't know. You'll have to discern. There's going to be offers, a lot of them, they're taking this and they're fractionalizing it. So you can own a dollar, I guess, whatever the minimum buy is, token coin, a fractional, a piece of this huge thing to fit your budget. So it. Doesn't that feel a lot like a stock? Sort of. Doesn't that feel a lot like a stock? Sort of. So the blockchain, a system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer to peer network. Okay? That's blockchain. It's a crypt. It's a, it's. It's a network. It's a network. Okay, so, so this is how it works. A blockchain, a transaction is requested. The block representing the transaction is created. The block is sent to every node in the network. Okay, These are like little servers. And then the nodes validate the transaction and receive a reward for proof of work. So all of these nodes, all of these servers verify the transaction. It's open source. It's. This would normally be a bank, maybe right here, okay. And the bank would verify the transaction. This is an open source crypto. It's recorded on an open ledger, a digital blockchain technology. Okay. And then the block is added to the existing blockchain and the transaction is complete, stored forever in the blockchain. Okay? The receipt is, is there. This is the receipt. It's finalized. The payment is done. Okay? That is blockchain. Okay? So let's look at another example how blockchain technology works. Transaction is requested. A block that represents the transaction is created. The block is sent to every node in the network. The node validates the transaction. The block is added to the existing blockchain, and the transaction is complete. Okay, let's use an analogy of how this is in our world today. A, you want to buy a purse, okay? At the Gap, you use a credit card, okay? So the credit card payment goes down here, okay? Transaction is created, okay? The credit card system at the Gap talks to the bank, okay? Talks to the bank, the bank verifies the transaction. Transaction goes into your account, okay. In your statement, and then you get a bill in 30 days or whatever, or if it's a debit, it comes right out straight away and then the transaction is complete. But the difference is this is on the open source. This blockchain is ran by servers versus like giving your bank your credit card. Okay, like bank of America, Wells Fargo or Chase, okay. That would normally be where the transactions held or American Express or whatever company. Okay. And then they're using older technology that cost the merchant more, that could potentially has more fraud. So the claim that blockchain is the fees are lower, the transactions quicker, and the fraud is less. Okay. Because it verifies multiple servers that that is the case. Okay. So we've, we've discussed blockchain basic definition. Let's look at our next story. So banyanhill.com we make investments simple, fun, and profitable for bold Americans. Love that word, fun. The next real estate boom might start on the blockchain. Okay, this is the Daily Disruptor. And this article is great, I think. So we're just gonna like, take a look at all of it. Honestly, I love living in South Florida. The author says, Ian. The sunshine, the outdoor activities, the lack of state income tax. Amen. For that, I'm blessed to have recently moved to a new home that's perfectly perfect for my family. But I have to admit, some days I miss renting my old loft. New York City. Back when I worked on Wall street, renting meant I didn't have to think about leaky faucets or lawn irrigation. Okay, we're gonna skip a little bit of that. So real estate fractionalized. Here we go. There was a time when the stock market was only for the wealthy. Decades ago, buying shares meant using a broker, paying steep fees and purchasing large volume of stock. Then came online brokerages. After that, fractional shares. Fractional shares. Aren't those EFTs? Today, anyone with a smartphone of $5 can buy into Amazon, Apple, or Tesla. And the democratization that appended the stock market is now coming to real estate. Thanks to blockchain technology, investors today can buy fractional ownership in physical properties. Just like we talked about with our first case study, real estate token offering on rental property News today. I'm not talking about REITs. They've been around for over six decades. I'm talking about buying real estate through digital tokens backed by real world assets. In early 2018, I met a group that was selling 20% of the St. Regis Aspen Resort as tokenized securities. What a beautiful hotel. Would you like to earn a part of the St. Regis Aspen Resort? These crypto tokens represented equity shares in the iconic hotel, and the ownership could be freely traded on the exchange. I realized back then that this model could disrupt the traditional capital formation process for new real estate projects. It also opens the door for millions of people to own real estate who simply couldn't afford it before. Today, platforms like Lofty and Real IT are examples of this kind of fractional ownership. Both platforms left, let investors purchase tokenized parts, slices, pieces, fractions, shares in single family rental properties, typically $50 to $100 a slice. Each token represents a legal stake in a property, complete with access to rental income appreciation, early voting on management decisions. So again, like, like Ian said, this is not different than the reit. Okay? We've been around those a long time. But what is different is the way that they are being recorded in the decentralized world of blockchain. Okay, the open ledger. You can buy shares into one house, one building, one hotel, one apartment, one hospital, one mobile. Mobile park. Okay, one building, one commercial building. You can buy. Buy a share. A stock. They're not calling it a stock. Why are they not calling it a stock? Probably because those are regulated. Maybe they need a new term that isn't regulated because words matter. Maybe it's that simple. Maybe it's just a share. Okay, let's remove the, the, the, the overwhelmingness of all the new words and let's just boil it down for what it really is. It's just a share. You would own a share in a piece of property that normally you could not own a share in because there was no way to dice up that property. Until now we have blockchain. There is a way to dice it up because of this new technology, this new accounting system, this new open ledger. The article continues, by lowering the barrier to entry, fractional real estate is changing the way people invest in property. Instead of needing a big down payment or a mortgage, you can now buy a small piece of a home with as little as $50. This makes it possible for people to get into real estate even if they can't afford to buy a house the traditional way. Now, I will say I'm hearing this narrative. We'll see how this all shakes out. But are you owning a home if you just have a $50 share in that home, or are you just investing $50 in something that is a piece of property? Do you see the difference in the language? What does owning a home Mean, let's boil that down. Does that mean you can, you have this tangible asset that is yours that you have autonomy over, that you have unfettered, right. Essentially, as long as it's within the law. Which, what are the laws of homeownership? Well, if it's inside your home, I guess you can't commit a crime like murder someone or aid and abet a criminal or something like that. Right. But other than that, you pretty much do what you want. Okay. I mean, you probably can't mix meth. I mean, again, goes back to, that's breaking the law. But you can do what you want to do in the privacy of your home. That is a home. That's what you own. It's yours. Even when you live in an apartment or a rental property, there are, there are, there are rules that don't give you that full autonomy like you have when you own a home. Okay, that's owning a home. So is owning. Is $50 fractional share ownership, really owning a home? You be the judge of that. I'm not so sure it is. It also means that you don't have to put all your money into one property. Instead, you can spread it across many different properties, homes, investments in different cities. That way, if one doesn't do well, the other can help balance things out. Many of these properties pay out rental income too. For example, real it distributes rental income to token holders in the form of stable coins. That goes back to that first stable coin. For the case study that we looked at the Home Unity stablecoin or cryptocurrency. So if you own so stablecoin. So I take that back. Maybe. Maybe. Well, because see, we're all learning together, aren't we? Because Home Unity HRPT is made on its own blockchain. Does that make it a stablecoin, its own stablecoin? Maybe, maybe not. These are questions. These are discoveries. So if you own a few tokens, you can collect regular payments. In this way, it's similar to getting divided from a stock, similar to getting a dividend from a stock. And while real estate is usually hard to sell quickly, some platforms make it easier. Lofty, for example, lets you cash out on any day of the week. With their buyback system, you are in daily rent payouts and sell. You can sell your tokens via their secondary market anytime. In short, tokenized real estate offers a simple way to earn income from property without being a landlord. And it has potential to completely reshape the real estate market instead of going to a bank or real estate investor for a loan. It offers people the ability to sell equity in their own real estate to interested qualified investors. Naturally, institutional players are taking notice. BlackRock and JP Morgan are already exploring tokenization of real world assets. I'm pretty sure they've already started doing that. Right now they're mostly focused on private credit and treasuries, but I believe real estate could be next. Here's my take. Currently most of the activities based in the US but you can see a future where a school teacher in Kentucky could own a sliver of an apartment building in Bogota or a software engineer in Atlanta could co own a beachfront rental in Tulum and it would be all be handled through smart contracts and digital wallets. Oh New words alert. New words alert. Let's take a look and see what these words mean. And remember, don't get overwhelmed. Comparison is the thief of all joy. And we're not here to do that. We're here to learn a little bit today and we're going to learn a little bit more tomorrow and we're going to learn a little bit more the next day and a little bit more the day after that. And this is a process. This is our first inaugural voyage as our rental property audience and community to engage in the concept, the communication, the understanding and the ideology of rental property investing on the blockchain. This is a new world and nobody knows how it's going to pan out. So comparison is the thief of all joy. So just settle in and let's just learn a few words today and we'll continue on and learn more words later on. But do not get overwhelmed. Do not get stressed. That's not the point of this game. So what is a smart contract? A smart contract is a fundamental part of the blockchain technology and one of the things that makes blockchain technology so unique. It's a piece of code where the purpose is to automatically perform an action if premeditated conditions programmed in the contract have been met and verified. So it's at the core, a digital contract. It's a digital contract. Most contracts are in writing. They're on a piece of paper, literally. And maybe that piece of paper is digitized. But when you buy a rental property, 99 times out of 100 you are literally going to a title company or a mobile notary and a human face to face person and you are literally signing a stack of papers with a pin that is typically blue and you are writing your name over and over again. And that is how contracts are executed. When you purchase the Property, that's when you close, when you purchase the property, okay, you're still signing a contract. You might do it with a digital signature or on one of the major digital signature technologies called DocuSign, but that is still you having to sign the contract through a verifiable connector, which is your email address. Okay? So it verifies through that that it's you. And sometimes when the deal's really big or certain requirements won't allow for digital signatures, they require wet signatures on actual real paper. So, but in short, a smart contract is, is a digital contract and it says it's, it looks like this, it says if, if X occurs, then execute Y. Because remember, smart contract is digital. So therefore digital contract is, is binary, right? So you can have code written, you can have action, you can have activity. All right, it has, it has action in it. Everything is stored on the blockchain, meaning the contract terms are stored in a distributed database and cannot be changed or deleted. Smart contracts are often upgraded version of traditional manual contracts that have been used for years. Both are an agreement between two or more parties that is carried out if the agreed criteria are met. The main difference between these two contracts is that smart contracts are self executing code that automatically execute the terms of the agreement. This process does not require human intervention to verify and enforce the terms in advance as traditional contracts do. By using smart contracts, companies can automate many processes currently carried out manually, which will help reduce costs. This is just one of many advantages of using smart contracts in business. What do you see as the most significant advantage of using smart contracts is the question. Let's take a look at the graphic. A traditional contract, you have two parties, they sign a contract. There's a third party that automates that contract. In real estate, rental property investing would be a closer or sometimes it would be the real estate agent and then you have the execution or a lawyer, excuse me, would prepare the contract and then you have the execution of the contract. That's the closing and the funding. And when terms of the contract start to take place, smart contract says you have same thing, the front part is the same two parties or more. And then you have the digital code version of that contract that does what it's going to do to execute the contract. Okay. And that's how real estate is going to work on the blockchain. It also mentioned another word, a digital wallet. A digital wallet is also known as an E Wallet is a software application that securely stores payment information and allows users to make electric electronic transactions. That acts as a virtual Replacement for a physical wallet, holding payment methods like credit and debit cards, loyalty cards, and even digital tickets or coupons. News Flash, my friend, you very likely are already operating in some form of a digital wallet and have been for years. Apple Pay, Google Pay, PayPal, Samsung Pay and Venmo are all examples of digital wallets. Zelle is another digital wallet. So it just allows you to transact, okay, digitally outside of the traditional use of a credit card or a check. Okay. Which was even more the antiquated approach of transacting. Okay, so another word we're learning is called token. We've already been talking about this, but to get an actual definition, it's not of crypto token, but just a Webster definition of the word token. It says a thing serving as a visible or tangible represent representation of a fact, quality or feeling. A voucher that can be exchanged for goods or services, typically one given as a gift or offered as a part as a promotional offer. Okay, so they took a word that's been in our language a long time and they're calling it token. Okay, so just be aware of. Okay, it's just a piece, it's just a part, it's just a section. Okay, now let's go back to our article here and finish it out. After all, tokenized real estate doesn't care about borders. Remember we said this is cross borders, this is international, this is 24 7. And the need for affordable, accessible property ownership has never been more urgent. I see tokenized real estate as a serious solution to this generational crisis of housing affordability. Again though, the people that are not owning homes, which he alluded to earlier in his article, are they really going to be owning homes though? Is that called home ownership? When you don't, when you own $50 of a, of a hotel, you get to discern that. But that's part of what this is about. Our journey, our, our mission here at Rental Property News, it's, it's to provide you thought provoking questions that you can ask yourself as you're doing your own research. Okay. You are to dissect and discern what investments make sense for you. Some will, some won't. But this is a new world that we're entering in this web 3 digital asset tokenization, digital wallet, definanced, blockchain, open source, smart, contracted world that is happening with or without you and with or without me, my dear friend. So you get to discern what relationship you're going to be making with it and you're going to get to discern how you're going to do your research. Now if a whole new world is being opened up on the financial sector, which this is a whole new financial sector, a million pieces of the Chrysler Building in New York City, I mean that could be tokenized, right? The Chrysler Building in New York City could be tokenized and you could buy a coin, you could buy a token of that property. Okay, would you, would you then own the Chrysler Building? No. Just like when you own a share of Apple, you don't own the company Apple, you can't walk in the front building and say well I own a share of Apple. So therefore I'm an owner and an employee and I have, I have authority here. I have, I have, I have agency over this company. I have dominion over this company. I have ownership in this company. You own a share financially and in exchange for your money which you gave, they promise you a return. This is no different. So I think it's going to be really imperative as you, as you go through this new blockchain discovery, this new word dictionary that it's imperative to ask these questions to go down the rabbit hole of just because somebody writes an article doesn't mean it's real or true. Just, just we're, this is a new world. Nobody knows what it's going to be. And so if they're saying you're going to own a house because you buy a $50 token into a house, I don't maybe, I don't know if that's the same thing. So open your mind to that dear friend. As the article wraps up of course there's risk regulation is still evolving and secondary markets are not fully liquid. What's more, not all platforms are created equal so it pays to do your research. I couldn't agree more in but if this sector skills like fractional stock investing has it could unlock trillions in real estate value while opening the door for millions of first time investors. And that will happen. So let's take a look at science soft scnsoft.com which made a really great graphic for describing asset tokenization. So it's saying like hey, all the things that you could normally just buy the whole of real estate, financial securities, art, tickets, cars, precious stones and more. These are just some examples of what could be tokenized. You can, you can now buy a part of this. A token, a piece, a slice, a fraction, a share, a verification. It says hey, you're going to verify the ownership of the asset. Okay and maybe that is the llc. Llc. Maybe the LLC buys the whole piece of Real estate, okay? Because somebody's got to offer this. Somebody's going to have the right to offer the tokenization. So if the Ritz, going back to the, the case study, the Ritz Carlton Aspen property, okay, the, the St. Regis Aspen Resort that, that Banyan Hill discussed, somebody's gotta have the right to offer the tokenization of this real estate asset, okay? Somebody's gotta have that right, okay? So the ownership has to be somebody, okay, come from somewhere, and then they have to offer, right, the parts. So that's, that's the LLC or the entity or someone that owns it or has access to act on behalf of the owner as the manager or the partner partnership, okay? And then they're gonna sell bits and pieces and shares and sections and tokens, okay? All of those words are, Are synonyms, okay? They're, they're connotations of, of what tokenization is. Tokenization. Tokenized. So they're going to say, okay, we're going to say, then we're going to create a value. They're going to discern a value. How are they going to come up with that value? Well, they're probably going to write a white paper just like we saw, like this. They're going to do probably something like this to say, hey, we think it's worth this. Okay. When dealing with real estate, though, maybe real estate that's been around a while, like that Aspen Resort, well, maybe there is a way to discern value in an easier, more clear way. Maybe, you know, just like when we have to assess value of rental property, we have tools that have been around a long time to do that. It's not necessarily new. So maybe they're going to evaluate the property in a similar way. And another reason why would the Aspen St. Regis want to tokenize? Well, maybe they want to do renovations and they don't want to go to the bank to get the money. Maybe they just want to raise money because they need to improve and increase their reserve fund. Or maybe they want to build a new section, or maybe they want to build a whole new resort next door to this resort or even in a new city. Or maybe they don't want to do any of that. Maybe they just want to. Maybe some of the owners want to sell and there aren't any buyers. And so they go into the blockchain to try to find buyers. Through blockchain. I mean, I'm sorry, through tokenization. Through that offer, that marketing offer, that, that memorandum, that prospectus, that. That offer, okay, which normally, again, used to be only with Internal circles and accredited investors and hedge funds and private money and private equity, okay? Now all that stuff is going to the public. They're going to you and they're going to me, the normal people, okay? And they're saying, hey, give us $50 and we'll give you a token of the St. Regis Aspen. You know, and maybe you do it and maybe you don't. Maybe it has an allure. You know, there's going to be some of that that begins in this new phase where people just want to, want to have clout and they want to say, well, I am an owner in the St. Regis Aspen Resort. And what they really mean is they bought one coin worth $50 and they called themselves an owner. So you're going to have to discern what that means. We're going to hear a lot of stories like that. We're going to hear a lot of people say, oh, I've made so much money and I'm an owner. And you're going to have to dig and try to find out what are they? What does that really mean? Okay, what does that really mean? So, alright, so the asset gets evaluation and then they develop the smart contracts like we talked about. Okay, Those are, those are the contracts that say you have a piece of this, a token. How many tokens? It's your receipt, it's your share receipt. Okay? Just like when you log into your Vanguard account and you see what's your portfolio worth? But even more so when you dig down and you say, well, how much Tesla stock do I own? How much Apple stock? How much Amazon stock, how much S&P 500 stock? You look at that, and those are the. Each one is sort of like a little smart contract. Sort of. Even though smart contracts can do more than just hold value statically. But, but anyway, that's accounting. That's an accounting that Vanguard manages for you. Okay? And then choosing the blockchain platform for the tokenization. Okay, we're not going to get fully into what that platform is today. That's a whole new world. But that's a part of it. And then you build, building the app to manage the tokenized asset and then the token release on the secondary market. Okay? Tokenization process. Remember, comparison is the thief of all joy. Don't get overwhelmed. That's not what this is about. And a reminder to subscribe to our channel if you like what we're doing here at Rental Property University. We're looking for our 57th subscriber. Are you lucky number 57. We've made over 132 videos. And we're going to keep making them to help you discern what's real and what isn't, what's the right investment and what is not. Are you going to be investing in blockchain or are you not? Are you a traditional investor? Do you believe rental property investing will never go out of style like I do? But are there going to be evolutions? Yes. And, and what will they be? How will you like to give your time, treasure and talent if you support our cause, Our mission to educate. You can give us your time by subscribing to our channel. You can give us your treasure, which is your money or your talent. And yes, we will be accepting crypto donations here soon, but you could click on schedule a consult which comes to us if you want to work with us. Okay? Our book will be out soon as well, and you can buy that with your hard earned money if you'd like to support what we're doing. So let's wrap up and talk about what is Web3. Okay. And this is important because I want you to understand we're just in a new phase of the Internet. Just like we heard from Bill Gates in 1995. Okay. We are just on our next chapter. He was talking about Web One in 1995. That was the information economy. And then we got to Web two. That's the platform economy. And now we're getting into Web three. That's the ownership economy. Okay, if you just boil that down Now, Transitioning from Web 2 to Web 3 Guide for Front end engineers. Well, I guess that's what we are. I don't know if that's who they're talking to, but I liked the pictures of these because you could see these logos. Some are still around, some aren't. It's read only static. Okay. Yeah, you could still do email though, couldn't you? You've got mail. Remember that movie? You could reply, right? You get the mail, you send a message back. But it's, it's, it's kind of like a, like a bilateral static communication. There's not much you can do beyond that. Maybe you can send some attachments, things like that, but you can't interact in the way we interact today, which is the read and write interactive era. That's Web two. I'm sure you see a lot of these logos that you're aware of. LinkedIn, Facebook, Twitter, Google, Duolingo, Pinterest, Snapchat, Spotify, Dropbox, those are all interactive spaces. Okay, now we're getting to the web Web three. It's the read, write and trust verifiable. It's AI, Right? That's another element of this. This is a third dimension. It's a new element. It's, it's more broad. It's, it's, it's deeper. It's a whole new world that we're going into. And no. And there's going to be a lot of shift in money. There's going to be a lot of financial shift and change. It's a whole new world. It is a whole new world and it's going to happen with or without you or me, friends. So you get to discern how you want to have a relationship with it. And remember, in order to understand the future, we must first learn from the past. So on this day in 1995, June 27, 1995, we have NASA history. STS71 launches. Okay, and we're still launching into space, aren't we? It says this week in 1995 space shuttle Atlantis mission STS71 launched from NASA's Kennedy Space center, the first space shuttle near docking. It also marked the 100th US human space launch conducted from Cape Canaveral, Florida. So let's take a look at that launch. Okay, had the volume off there on the space station. We're looking at mission specialist Greg Harbaugh who is on his third flight today. He is mission specialist. The hairstyles look a little different. What do you think? And we're still going into space, aren't we? Wouldn't you say we're going into space, into a new dimension. What are the words we're talking about in 2025? Mars, one of our two, still deep into the conversation about our life on other planets, light years galaxies. Nikolai Budaran on his rovers and our own pilot, Charles Precourt who was on his second flight into space today. So just like in 1995, mirror 19 crowd and just like in 2025, 30 years later, we're still going into space. And now we have private companies doing it outside of NASA, like SpaceX and Blue Origin. How many satellites are in space now? What companies launched them into space? Probably more than you even have a clue about. But there's one thing that never gets old. The view of Earth is always and will forever be breathtaking. So as we close our session with Rental Property University, just remember Web three, just like space is bigger than you and it's bigger than me and we don't have to understand the abyss, the never ending, open, incredibly infinite world that we live in, there's going to be a lot of information coming at you, my dear friend. So you're going to have to decide how you want to have a relationship with it. A lot of offers will come your way. You get to decide what you want to invest in. And in this new world, you will win some and you will lose some. And that's okay. Just decide you want to play the game. Until next time, dear friend. Thank you for joining on our first edition of the rental property news blockchain edition. We'll see you next time.