coinspress.com
The tokenized real estate industry is growing, and Homebase has successfully tokenized its first single-family rental property in McAllen, Texas.
Through smart contracts, the company managed to generate $246,800, including $11,800 allocated for maintenance and other issues.
Homebase took seven months to ensure its real estate offering complied with SEC regulations and could be marketed to both retail and accredited investors, raising a total of $246,800 from 38 investors, of whom 30 were non-accredited.
The startup opted for Solana over Ethereum and Polygon due to concerns over rising ETH gas fees and blockchain bridges that resulted in disappearing funds for investors.
The Bay Area and other areas of the US remain out of reach for many due to property prices, making tokenized real estate an attractive option.
READ MORE: Blockchain Gaming Executives Predict Mainstream Adoption of Web3 Technology
Homebase believes its product can make money and help homeowners and investors while ensuring compliance with SEC regulations.
The Solana tokenization of the McAllen single-family property raised approximately 19%, with 80% of the equity remaining with the property owner and Homebase retaining 1%.