IRET

IRET stands for “Individual Real Estate Token”. The phrase encompasses an umbrella made of many tokens, each of which represents an individual property. When a property owner tokenizes his property, the property will then be represented by an IRET(x) token -- the (x) referring to the individual property. The IRETs will not all be represented by a single value such as all bitcoins, but instead be their own individual tokens with individual values backed by their real estate.

The IRET will not be a tokenization of the actual title of a property, but either an operating agreement from the title holder to the IRET holders or a representation of equity share in an LLC where that property ownership is transferred. This will be determined by logistics presented by lawyers and go-to-market strategy. The most likely outcome will be that non-income producing properties (i.e. residential homes and land) will be tokenized through the operating agreement and commercial/income producing properties will be tokenized via an LLC.

Behind each IRET there will be a property profile detailing all of the property’s: location, characteristics, pictures, financials (for income producing properties), and videos. Additional to a property’s profile, the issuers of the tokens (the people or entities who will be tokenizing their properties), will also have an issuer profile outlining who they are, the reasons for their offering, and their future plans with their properties. The inclusion of issuer profiles allows investors to feel safer about who is managing the asset that they are investing into.

In order to encourage property owners and IRET buyers to hold IRETs they will receive 10% of the trading fees from the IRETs representing their property.

The lifecycle of the IRET goes from: tokenization, listing, trading, and finally dissolution and payout upon sale of the property.

Additionally, each IRET will have their own DAO to make the decisions for each property. Should a property owner choose to sell more than 50% of their tokens the DAO would be ultimately responsible in the decisions made for the property.