Our motivation

Real estate appreciates with time. To benefit from its capital appreciation, the average Joe usually buys (and often lives in) a residential property.

Beyond his residential property (if there is one at all), huge sums of money out of his reach are needed to purchase a commercial or a second residential property. Or he may entrust his smaller sums of money to real estate investment trusts (REITs) which function as large opaque investment funds managing real estate portfolios. Investing in REITs, Joe loses control (and money to fund fees), in exchange for some liquidity guarantees.

It shouldn’t be like that. It should be possible to generate income from a fraction of a real estate property. It should be possible to participate in the property market for just about any quantum of an investment, not just at $$$. It should be possible to have liquid real estate investments.

How can DREM help ?

The biggest hurdle with real estate investment is their liquidity. Real estate faces scrutiny in traditional markets due to its low liquidity and fungibility. High asset values and high transaction costs for buyers and sellers are reasons for hesitancy in investment into real estate. DREM solves these problems by creating a marketplace where fractional shares of real assets can be traded. Special marketplace rules incentivize market makers to generate liquidity for the market. Fast and secure proof-of-stake blockchain keeps transaction fees at the very minimum.

DREM converts real estate assets into divisible NFTs. Ownership of each asset (house, apartment, office space) is represented by 1 unit of a custom NFT token (ASA), uniquely tied to the asset. An investor can acquire fractional ownership of the asset by buying a fractional share of its NFT on DREM.

Permanently programmed with our smart contracts, the NFT entitles the investor to receive his proportion of the rental income that the asset generates.

• Decrease risk - Investing into multiple real estate properties across regions and sectors of the economy decreases risk, compared with over-investing into a single asset. Investors can diversify their savings into multiple projects and decrease their overall risk of project default and choose acceptable risk investment strategies with predefined risk profiles, with complete transparency into precisely the real estates that comprise their portfolios.

• Provide Exchange Liquidity - An asset divided into smaller shares is more liquid than the whole unit. At a smaller quantum, market makers face less risk and are able to provide lower spreads and better liquidity.

What projects can go on DREM?

• Existing properties - These investments include houses, apartments, offices, factory spaces and farms. Investors hold shares of the underlying assets and earn rental income from them as well as profit from capital appreciation.

• Real estate development - In these types of investments, investors provide funding for new real estate development. Investors earn interest on the loaned funds. The loan is backed by the assets of the project under development.

• Social value investment - Investors fund housing for victims of natural and other disasters. In return, investors get a social value token with a permanent record showing how their funds were used.