Use Cases

There are a plethora of reasons for both property owners and investors to use the REX Protocol. Below, you can find some examples of how the REX Protocol could be useful to both:

• Property Owners

  • Getting liquidity - Be it for remodeling their property, raising funds for an additional acquisition, or buying a new car, liquidity is a major benefit of using the REX Protocol's platform.

  • Market speculation - As has been shown in the past couple of decades, real estate prices can be extremely volatile. Property owners can sell equity in their properties in order to take profit in rising markets or hedge against potential declines.

  • Property flipping - A person who regularly flips properties (i.e. buys a property that needs to be "fixed", fixes it, then turns around and sells it) could use the proceeds from selling IRETs to fix the property or acquire new properties to flip while the one they intend to sell remains on the market.

  • Paying off a mortgage - If a property owner still has a mortgage on their property they will be able to issue IRETs in order to pay off the mortgage under the provision that they need to pay off the mortgage with the funds generated from the IRET sale and the mortgage must be paid off in full.

  • Equity release - In the case of senior citizens, instead of arranging a lifetime mortgage or a home reversion where upon death the property is retained by the lender, one can instead sell equity in their property through IRETs and retain the title of their property as well as inheritance value for their children.

• Investors

  • Hedge against inflation - Instead of keeping their money parked in inflationary currencies or other risky investments, investors can now maintain their funds in the form of liquid tokenized real estate investments. While there are trillions of dollars being printed by governments and thousands of new cryptocurrencies launched every day, one cannot simply invent more real estate.

  • Passive income - By investing into income producing IRETs, investors can start earning passive income on top of the appreciation of the IRETs - all without having to go buy a property and get it leased themselves.

  • Market speculation - In the same manner as mentioned above, investors will also be taking advantage of trading IRETs on speculation.

  • Arbitrage - As mentioned in the IRET Tokenomics section, it is possible for the token price to dissociate with the property that is backing it's fair market price. Arbitrageurs will be able to take advantage of these discrepancies between the markets.

  • Diversification - Investors will also be able to enjoy several different types of diversification through the REX Protocol:

    • Portfolio - Will be able to expand their investments into the real estate sector

    • Property type - Will be able to buy different types of properties, such as: multifamily, office, retail, hotel, etc.

    • Geography - Will be able to reach different geographical areas in a much easier manner