Miami is one of the most attractive destinations for real estate investments in the United States, thanks to various factors that guarantee superior profitability and is where total foreign investment exceeds 12 billion dollars. In the last 10 years, Real Estate investments from Latin America in this area have doubled and Chile is already in 4th place in the ranking, sharing the position with Mexico and Brazil.
However, until now these investment opportunities were limited to large investors. Many Chileans seek to access this market, which until today was restrictive due to the high investment amounts required and the bureaucracy that included hiring lawyers, accountants, creating an LLC and opening local bank accounts.
In this context, a new proposal is launched to democratize investments in Real Estate in the United States, inviting all types of investors to participate starting from a base of only USD $1,000 and receive returns in dollars.
This new way of investing is promoted by the company specialized in tokenization of assets and real estate investments Rext , who present as their first project the renovation and expansion of the Sorrento Villas hotel in the heart of Miami Beach, which will involve a total investment of USD 4,000. 000 and will completely renew the experience that this complex offers today in one of the fastest growing areas.
This investment opportunity offers a profitability of around 15% annually, with monthly payment, considering the operating return and the estimated capitalization over 30 months.
Bruno Drobeta, Co-founder & CEO of Rext , specialist with more than 20 years in leadership in companies such as Samsung and Apple, explains:
“With this project we seek to democratize access to real estate investments for Chilean investors in the most attractive market in the world. We work to provide a solid profitability opportunity, based on a real asset with great appreciation potential in Miami. And it is thanks to blockchain technology that today we can offer access to this investment from small amounts, and that the entire process is traceable and transparent. Thus, from Chile or anywhere in the world, today you can invest in a business that moves millions of dollars and become the owner of a hotel in Miami in 4 simple steps and from your cell phone or digital device. You register, fund the platform, buy and enjoy returns in dollars.”
WHY INVEST IN TOKENIZED PROPERTY?
The tokenization of a property is a process in which it is divided into small proportional parts called “tokens”. This token is backed by a share of a company that owns the property.
So by acquiring them we are buying shares of a company (that is why these tokens make you the owner). And this process of division or tokenization is carried out by creating a smart contract on the Blockchain, which records the ownership of the tokens in a decentralized way and allows investors to buy and sell them in a secure and transparent way, since that all movements are recorded and cannot be altered by anyone.
Real estate investments through tokens are today the future of the market, not only of Real Estate but of investments in general.
According to data from the World Economic Forum, by 2030, it is estimated that 10% of the world’s GDP will be tokenized. This is thanks to the benefits it provides, among which are:
1- Accessibility: it is no longer necessary to have large capital to invest.
2- Efficiency: transaction costs are significantly lower and the process is much faster, as it is carried out 100% digitally.
3- Liquidity: Unlike the traditional form of real estate investment, tokens are easily exchangeable, which means that people can sell them at any time quickly.
4- Transparency: all transactions are recorded in the blockchain, providing security and trust to the process.
THE SORRENTO VILLAS HOTEL PROJECT
The Sorrento Villas hotel will be expanded and completely renovated, and will go from the current 20 available rooms to 49 suites, along with other improvements in the comfort offered to transform it into a high-end boutique hotel located in the heart of Miami Beach.
The renovation contemplates the comprehensive improvement of the 806 m2 that make up the hotel today and includes the development of a new adjacent building that will total 550 m2. (between covered and semi-covered) The project also includes an amenities area with a swimming pool and solarium, accompanied by a breakfast and lounge area.
The art deco architecture of the mid-20th century, characteristic of Miami Beach, will be the protagonist of the new aesthetic of Sorrento Villas that will also seek to accompany digital nomads with spaces designed to be used as work areas and common areas that will favor networking and recreation.
In addition, efforts will be made to optimize energy efficiency by installing solar panels and by placing insulating construction materials. The project also seeks more efficient maintenance through the automation of operational functions, thanks to state-of-the-art home automation systems.
BENEFITS FOR INVESTORS:
– Yield : 15.6% annually for an investment horizon of 30 months, which includes the return on capitalization. During the work stage, which is estimated to last 18 months, the annual return will be 6% – with monthly payments -, and once the work is completed, the operating profitability is estimated between 7% and 8% annually, to this is added Property appreciation expected to be around 23%.
– Accreditation of performance: it will be carried out in the account or in the method used by each investor at the time of purchasing the token, which may be a bank account, AstroPay account or cryptocurrency wallet.
– Ownership title: once the purchase of the token is approved, the company will send each investor the signed contract that validates them as the owner of the investment made.
Rext arrives in Chile to democratize access to large investments in the United States and allow Chilean investors to enter the most attractive real estate market in the world from only USD 1,000 and receive monthly returns in dollars.