The Opportunity Zones program is seeing significant updates and proposed changes, primarily aimed at enhancing the benefits and refining the operational aspects of the program to foster more economic development in underserved communities.
A new bipartisan bill introduced in the U.S. House of Representatives is proposing to extend the tax deferral period for Opportunity Zones investments from 2026 to 2028. This extension aims to provide investors with additional time to reap tax benefits, such as the basis step-up incentives. Previously, investments made by December 31, 2021, could qualify for a 10% basis step-up, with the possibility of an additional 5% for investments held for seven years. The new bill also suggests expanding reporting requirements to enhance transparency, allowing investments in multiple funds (fund of funds), and disqualifying high-income Opportunity Zones while providing states the option to designate a new zone
Further, the legislation intends to address concerns about certain zones, like Buick City in Flint, Michigan, that were initially overlooked. These improvements are part of an ongoing effort to ensure that the program can better serve targeted communities while also addressing industrial site revitalization
For more detailed insights into the legislative updates and their implications on real estate and other business investments within Opportunity Zones, you can refer to comprehensive resources and analyses provided by OpportunityDb and Novogradac. These updates reflect the evolving nature of the program and its role in enhancing community development through strategic investments.
Further reading can be found on our blog https://bostonrealestateinvestorsassociation.com/opportunity-zones/
https://bostonrealestateinvestorsassociation.com/reviving-communities-the-transformative-power-of-opportunity-zones-in-real-estate-investment/
Wednesday, May 8, 2024
Tuesday, May 7, 2024
We hope you’re enjoying the benefits of being part of our real estate investing community. As part of our ongoing efforts to bring more value to your membership, we’re excited to announce a partnership with VendorVIP to create an exclusive list of trusted vendors for home services, and we need your help!
**We’re looking for your recommendations on:**- HVAC services- Plumbing services- Flooring specialists- Pest control services- Any other in-home service providers you trust
If you have had a positive experience with any local service providers, please share their contact details with us. We want to ensure that all our members have access to reliable and high-quality services.
**How to submit your recommendations:**
- Please email us @ bostonreia @gmail.com with the name, contact information, and a brief description of your experience with the service provider.- If possible, please let us know why you recommend them and any specific services they provided that stood out.
Your input is invaluable, and by sharing your experiences, you're helping us build a resource that benefits the entire community. We will personally reach out to each recommended provider to ensure they meet our standards before adding them to our official VendorVIP list.
Thank you for your help in creating a trusted network of service providers!
Warm regards,
Duncan Wierman
Boston Real Estate Investors Association
www.BostonRealEstateInvestorsAssociation.com
https://bostonrealestateinvestorsassociation.com/help-us-create-the-ultimate-home-service-vendor-list/
Monday, May 6, 2024
Unlocking the Potential of Real Estate Lead Sources: A Guide for Investors and Agents
Navigating the myriad of lead sources available in real estate can be daunting. Each source comes with its unique set of advantages and challenges. Understanding these can significantly impact the effectiveness of your marketing strategy and ultimately, your success in the real estate market. Here, we'll explore various lead sources that have shaped the career of Jeff Chubb, a seasoned real estate professional with experience at RE/MAX, eXp, and now partnered with REAL.
The Double-Edged Sword of Free Lead Sources
Free lead sources like open houses, door-knocking, expired listings, and For Sale By Owners (FSBOs) are a great starting point for new agents. These methods require no upfront financial investment but demand a significant amount of time, making them less scalable as your business grows. These activities, while cost-effective, can quickly consume your most valuable asset—time.
Leveraging Digital Platforms: YouTube and Social Media
In the digital age, platforms like YouTube offer a fantastic avenue for generating leads at no cost other than your time. Creating engaging content that addresses potential buyers' pain points and offers real value can attract leads who are engaged and potentially closer to making a purchase decision.
Social media platforms, particularly Facebook, provide a cost-effective method for purchasing leads. These platforms allow for targeted advertisements that can fill your pipeline with potential leads. However, these leads are generally higher in the sales funnel and require nurturing over time to convert into sales.
The High Stakes Game of Paid and Organic Leads
Google or Bing Pay Per Click campaigns are more expensive than social media ads but tend to deliver higher quality leads. These are people actively searching for specific real estate services, thereby increasing the likelihood of conversion.
On the other hand, organic leads generated through effective Search Engine Optimization (SEO) on your website can be a goldmine. Although SEO requires a significant upfront effort and patience, the long-term payoff is high-quality traffic that can convert at a higher rate without the ongoing costs associated with paid advertising.
Premium Lead Sources: Real Estate Portals
Platforms like Zillow, Realtor.com, Homes.com, and Realty.com are on the pricier end of the spectrum. These leads are usually further along in the buying process, making them more valuable. However, the high cost associated with these leads necessitates a robust follow-up process and efficient sales funnel to ensure a good return on investment.
TRY THIS SOURCE OUT - HIGHLY RECOMMENDED
Traditional Yet Effective: Farming and Media Advertising
Farming a neighborhood through regular mailers and community engagement can be expensive and slow to yield results but promises significant returns with persistent effort. Similarly, investing in radio, TV, and podcast advertisements requires a substantial initial budget and commitment but can greatly enhance brand recognition and lead generation in competitive markets.
Strategic Advice for Real Estate Investors and Agents
- Master One Source at a Time: Dive deep into one lead source, optimize your strategy and ensure it yields consistent results before moving on to the next.
- Avoid Trend Chasing: Stick to lead sources that have proven effective and resist the temptation to jump onto every new trend.
- Invest in Systems: As your lead generation efforts scale up, having robust systems in place to manage and nurture leads becomes crucial.
Conclusion
Lead generation is the lifeblood of the real estate business. By carefully choosing and mastering different lead sources, you can ensure a steady stream of clients and grow your business sustainably. Whether through free methods, digital marketing, or traditional advertising, the key to success lies in consistent effort and strategic optimization.
For those eager to learn more about real estate lead generation or discuss their experiences, feel free to reach out to industry experts like Jeff Chubb or explore additional resources to enhance your understanding and skills in this critical area.
Check out our recommended source of ALL leads here by clicking here
CHECK IT OUT NOW
https://bostonrealestateinvestorsassociation.com/real-estate-lead-generation-top-lead-sources/
Navigating the myriad of lead sources available in real estate can be daunting. Each source comes with its unique set of advantages and challenges. Understanding these can significantly impact the effectiveness of your marketing strategy and ultimately, your success in the real estate market. Here, we'll explore various lead sources that have shaped the career of Jeff Chubb, a seasoned real estate professional with experience at RE/MAX, eXp, and now partnered with REAL.
The Double-Edged Sword of Free Lead Sources
Free lead sources like open houses, door-knocking, expired listings, and For Sale By Owners (FSBOs) are a great starting point for new agents. These methods require no upfront financial investment but demand a significant amount of time, making them less scalable as your business grows. These activities, while cost-effective, can quickly consume your most valuable asset—time.
Leveraging Digital Platforms: YouTube and Social Media
In the digital age, platforms like YouTube offer a fantastic avenue for generating leads at no cost other than your time. Creating engaging content that addresses potential buyers' pain points and offers real value can attract leads who are engaged and potentially closer to making a purchase decision.
Social media platforms, particularly Facebook, provide a cost-effective method for purchasing leads. These platforms allow for targeted advertisements that can fill your pipeline with potential leads. However, these leads are generally higher in the sales funnel and require nurturing over time to convert into sales.
The High Stakes Game of Paid and Organic Leads
Google or Bing Pay Per Click campaigns are more expensive than social media ads but tend to deliver higher quality leads. These are people actively searching for specific real estate services, thereby increasing the likelihood of conversion.
On the other hand, organic leads generated through effective Search Engine Optimization (SEO) on your website can be a goldmine. Although SEO requires a significant upfront effort and patience, the long-term payoff is high-quality traffic that can convert at a higher rate without the ongoing costs associated with paid advertising.
Premium Lead Sources: Real Estate Portals
Platforms like Zillow, Realtor.com, Homes.com, and Realty.com are on the pricier end of the spectrum. These leads are usually further along in the buying process, making them more valuable. However, the high cost associated with these leads necessitates a robust follow-up process and efficient sales funnel to ensure a good return on investment.
TRY THIS SOURCE OUT - HIGHLY RECOMMENDED
Traditional Yet Effective: Farming and Media Advertising
Farming a neighborhood through regular mailers and community engagement can be expensive and slow to yield results but promises significant returns with persistent effort. Similarly, investing in radio, TV, and podcast advertisements requires a substantial initial budget and commitment but can greatly enhance brand recognition and lead generation in competitive markets.
Strategic Advice for Real Estate Investors and Agents
- Master One Source at a Time: Dive deep into one lead source, optimize your strategy and ensure it yields consistent results before moving on to the next.
- Avoid Trend Chasing: Stick to lead sources that have proven effective and resist the temptation to jump onto every new trend.
- Invest in Systems: As your lead generation efforts scale up, having robust systems in place to manage and nurture leads becomes crucial.
Conclusion
Lead generation is the lifeblood of the real estate business. By carefully choosing and mastering different lead sources, you can ensure a steady stream of clients and grow your business sustainably. Whether through free methods, digital marketing, or traditional advertising, the key to success lies in consistent effort and strategic optimization.
For those eager to learn more about real estate lead generation or discuss their experiences, feel free to reach out to industry experts like Jeff Chubb or explore additional resources to enhance your understanding and skills in this critical area.
Check out our recommended source of ALL leads here by clicking here
CHECK IT OUT NOW
https://bostonrealestateinvestorsassociation.com/real-estate-lead-generation-top-lead-sources/
Sunday, May 5, 2024
Alison Brizius has been appointed as the Assistant Secretary and Director of the Office of Coastal Zone Management (CZM) by Massachusetts Energy and Environmental Affairs (EEA) Secretary Rebecca Tepper. CZM is responsible for leading the state's policy and planning on coastal and ocean issues, aiming to balance human activities' impact with the protection of coastal and marine resources through various strategies.
Brizius will oversee the ResilientCoasts initiative, a proactive strategy launched by the Healey-Driscoll Administration to guide state and local coastal resiliency policy and action. She will also implement the state's coastal programs under the federal Coastal Zone Management Act, ensuring environmental justice and equity are integrated into this work. Brizius will begin her new role on May 6.
In response to Brizius's appointment, EEA Secretary Rebecca Tepper stated, "Our coastal communities are facing the impacts of climate change, and it is crucial to have a strong and innovative leader like Alison Brizius at the helm of CZM. The Healey-Driscoll Administration is committed to protecting the state's coastlines and preparing for the future, and Brizius's background and expertise make her the ideal candidate for this role."
Brizius expressed her excitement about joining the Healey-Driscoll Administration and highlighted the importance of protecting Massachusetts' coastlines in the face of climate change. She emphasized her eagerness to work with the CZM team to enhance resilience, environmental justice, and sustainability for the benefit of future generations.
Brizius comes to CZM from the City of Boston, where she served as Commissioner of Environment, leading efforts to address climate change impacts and promote environmental stewardship. She has a background in climate resilience and previously held roles focused on climate and environmental planning. Brizius holds a Ph.D. in Physics from the University of Chicago.
Various stakeholders, including Boston Mayor Michelle Wu, NOAA's Office for Coastal Management, and local environmental organizations, have expressed their support for Brizius's appointment, citing her experience and leadership in climate adaptation and resilience efforts. They look forward to collaborating with Brizius and the CZM team to ensure the region's coastal areas remain resilient, sustainable, and accessible for future generations.
#HealeyDriscoll #Administration #Names #Alison #Brizius #Coastal #Zone #Management #Director,
https://bostonrealestateinvestorsassociation.com/alison-brizius-appointed-as-the-new-director-of-coastal-zone-management-by-the-healey-driscoll-administration/
Brizius will oversee the ResilientCoasts initiative, a proactive strategy launched by the Healey-Driscoll Administration to guide state and local coastal resiliency policy and action. She will also implement the state's coastal programs under the federal Coastal Zone Management Act, ensuring environmental justice and equity are integrated into this work. Brizius will begin her new role on May 6.
In response to Brizius's appointment, EEA Secretary Rebecca Tepper stated, "Our coastal communities are facing the impacts of climate change, and it is crucial to have a strong and innovative leader like Alison Brizius at the helm of CZM. The Healey-Driscoll Administration is committed to protecting the state's coastlines and preparing for the future, and Brizius's background and expertise make her the ideal candidate for this role."
Brizius expressed her excitement about joining the Healey-Driscoll Administration and highlighted the importance of protecting Massachusetts' coastlines in the face of climate change. She emphasized her eagerness to work with the CZM team to enhance resilience, environmental justice, and sustainability for the benefit of future generations.
Brizius comes to CZM from the City of Boston, where she served as Commissioner of Environment, leading efforts to address climate change impacts and promote environmental stewardship. She has a background in climate resilience and previously held roles focused on climate and environmental planning. Brizius holds a Ph.D. in Physics from the University of Chicago.
Various stakeholders, including Boston Mayor Michelle Wu, NOAA's Office for Coastal Management, and local environmental organizations, have expressed their support for Brizius's appointment, citing her experience and leadership in climate adaptation and resilience efforts. They look forward to collaborating with Brizius and the CZM team to ensure the region's coastal areas remain resilient, sustainable, and accessible for future generations.
#HealeyDriscoll #Administration #Names #Alison #Brizius #Coastal #Zone #Management #Director,
https://bostonrealestateinvestorsassociation.com/alison-brizius-appointed-as-the-new-director-of-coastal-zone-management-by-the-healey-driscoll-administration/
Saturday, May 4, 2024
So team or not to team.
I think a team is a GREAT idea for a new agent. There is a reason why 87% of all newly licensed agents are out of the business within 2 years. We will touch more on that in a couple of moments.
However a team offers a newly licensed agent a steroid shot and drastically increases their chances of making it in the industry. And for the record. This industry is cutthroat. It is one of the most difficult out there. I know the HGTVs of the world make it look easy… But again. There is a reason that 87% of all agents end up leaving within two years!
Yes. A team is a good idea. But only if it is the right team.
I mentioned a team leader who has a team to serve them a couple of moments ago. If this is the team you are looking at, then walk away and find a better team.
Like the Berenstain Bears beds, there are many different styles of teams. Some are really big. We call these Mega teams. Then you have what I would call normal-size teams. And then you have the smaller husband and wife size teams.
And all of them offer a different value proposition and can have some additional negatives. For example, a Mega team will most likely offer an agent more resources. Accountability will be a major thing as these mega teams are keeping track of all the KPIs, Key Performance Indicators. They will track how many calls you make, how many conversations you have. What the conversation-to-appointment ratio is. Then the appointment to contract signed ratio. You name it. They track it all. And they have to. Because they invest so much money every single month to ensure that the wheel keeps moving. They will also charge the buyer agent more. But if you want more leads, more training, more accountability, and possibly a bigger chance of success, then this is a great bet for you.
Then there is the husband and wife, mom and pop style team. There can be some big advantages to these team structures, but also some disadvantages. For the person wanting some resources, but maybe not wanting all of the accountability, then this could be a great option! But let’s dig into this a little deeper.
These teams aren’t holding their one or two agents accountable because they are not investing that much or even any into you and your business. Oftentimes the leads that these agents are receiving are the breadcrumbs of the team owners. The leads that they don’t want to work or the open houses that they don’t want to host.
I know this because this is where my team first originated out of. It’s how most teams first originate. My business was getting too big for me personally to handle. So I stopped working on all leads below $300,000. Then it became $350,000 and then it became a certain geographical area. Rather than throw away these leads and get nothing for them, I gave them to a buyer agent and did some wishing and praying. Anything converted was considered a little bonus.
In this situation the training isn’t great. There are leads, but they are the bottom feeder leads. But the splits are ultimately better!
Then there is the in between. The 10 or so person team that has a lot of the same resources. Has a bunch of accountability and is run with the agent and their success in mind. Ultimately at this level, the team leader has stepped out of production. They need their agents to be successful in order to pay their bills! These team structures ultimately feel a lot less like a machine and a close community. I find that it’s these size teams that generally have the best culture.
Without a doubt, a team will provide a new agent the best chances of success and drastically reduce the chances that the new agent becomes part of that 87% statistic.
So what is it that an agent is giving up in order to be on a team? A percentage of the commission.
On some teams that could be 30, 40, 50. I have even seen teams at 60 to 70 percent for in house leads that an inside sales associate nurtured.
It seems like a lot. I get it. But keep in mind that an agent on one of these teams has little to no monthly expenses.
People think that these teams slaughter it. But consider this. The best and most finely run mega teams will have a profit margin that tops out at 20 percent. If that team has a margin of 15%, then they are doing pretty well… And that’s before Uncle Sam comes knocking.
So what does that mean? Let’s say it’s a $10,000 commission after paying the brokerage as well as any ancillary fees. And let’s say it's a 50/50 split. Agent gets $5,000 of pretty much profit while the team gets $5,000 of revenue. Of that $5,000, the team will reinvest $4,000 into their business in the tune of new leads, office support, maybe an inside sales associate department while $1,000 is their top of the line profit.
These bigger teams are built solely to get agents to be more productive and get a return on their invested capital.
Can you succeed as a new and solo agent? Absolutely! Will it be more difficult? 100%. Leads are harder to come by. Training is more important than ever in this rapidly changing industry. And for most, the freedom is enough where we hang ourselves so the accountability is what keeps us focused and in the game.
If you are newly licensed and think a team would be a right fit for you, then let me know. Happy to pass along some team recommendations for you.
And if you are looking for a company where you will be able to learn and grow, then I would love to chat with you about the opportunities over here at Real Broker.
Again, it’s Jeff Chubb. You can reach me at 617-775-7687 and all my other contact information is below.
Until next time!
#Real #Estate #Join #Team
Jeffrey Chubb
2024-04-22 14:52:16
https://bostonrealestateinvestorsassociation.com/new-to-real-estate-should-you-join-a-team/
I think a team is a GREAT idea for a new agent. There is a reason why 87% of all newly licensed agents are out of the business within 2 years. We will touch more on that in a couple of moments.
However a team offers a newly licensed agent a steroid shot and drastically increases their chances of making it in the industry. And for the record. This industry is cutthroat. It is one of the most difficult out there. I know the HGTVs of the world make it look easy… But again. There is a reason that 87% of all agents end up leaving within two years!
Yes. A team is a good idea. But only if it is the right team.
I mentioned a team leader who has a team to serve them a couple of moments ago. If this is the team you are looking at, then walk away and find a better team.
Like the Berenstain Bears beds, there are many different styles of teams. Some are really big. We call these Mega teams. Then you have what I would call normal-size teams. And then you have the smaller husband and wife size teams.
And all of them offer a different value proposition and can have some additional negatives. For example, a Mega team will most likely offer an agent more resources. Accountability will be a major thing as these mega teams are keeping track of all the KPIs, Key Performance Indicators. They will track how many calls you make, how many conversations you have. What the conversation-to-appointment ratio is. Then the appointment to contract signed ratio. You name it. They track it all. And they have to. Because they invest so much money every single month to ensure that the wheel keeps moving. They will also charge the buyer agent more. But if you want more leads, more training, more accountability, and possibly a bigger chance of success, then this is a great bet for you.
Then there is the husband and wife, mom and pop style team. There can be some big advantages to these team structures, but also some disadvantages. For the person wanting some resources, but maybe not wanting all of the accountability, then this could be a great option! But let’s dig into this a little deeper.
These teams aren’t holding their one or two agents accountable because they are not investing that much or even any into you and your business. Oftentimes the leads that these agents are receiving are the breadcrumbs of the team owners. The leads that they don’t want to work or the open houses that they don’t want to host.
I know this because this is where my team first originated out of. It’s how most teams first originate. My business was getting too big for me personally to handle. So I stopped working on all leads below $300,000. Then it became $350,000 and then it became a certain geographical area. Rather than throw away these leads and get nothing for them, I gave them to a buyer agent and did some wishing and praying. Anything converted was considered a little bonus.
In this situation the training isn’t great. There are leads, but they are the bottom feeder leads. But the splits are ultimately better!
Then there is the in between. The 10 or so person team that has a lot of the same resources. Has a bunch of accountability and is run with the agent and their success in mind. Ultimately at this level, the team leader has stepped out of production. They need their agents to be successful in order to pay their bills! These team structures ultimately feel a lot less like a machine and a close community. I find that it’s these size teams that generally have the best culture.
Without a doubt, a team will provide a new agent the best chances of success and drastically reduce the chances that the new agent becomes part of that 87% statistic.
So what is it that an agent is giving up in order to be on a team? A percentage of the commission.
On some teams that could be 30, 40, 50. I have even seen teams at 60 to 70 percent for in house leads that an inside sales associate nurtured.
It seems like a lot. I get it. But keep in mind that an agent on one of these teams has little to no monthly expenses.
People think that these teams slaughter it. But consider this. The best and most finely run mega teams will have a profit margin that tops out at 20 percent. If that team has a margin of 15%, then they are doing pretty well… And that’s before Uncle Sam comes knocking.
So what does that mean? Let’s say it’s a $10,000 commission after paying the brokerage as well as any ancillary fees. And let’s say it's a 50/50 split. Agent gets $5,000 of pretty much profit while the team gets $5,000 of revenue. Of that $5,000, the team will reinvest $4,000 into their business in the tune of new leads, office support, maybe an inside sales associate department while $1,000 is their top of the line profit.
These bigger teams are built solely to get agents to be more productive and get a return on their invested capital.
Can you succeed as a new and solo agent? Absolutely! Will it be more difficult? 100%. Leads are harder to come by. Training is more important than ever in this rapidly changing industry. And for most, the freedom is enough where we hang ourselves so the accountability is what keeps us focused and in the game.
If you are newly licensed and think a team would be a right fit for you, then let me know. Happy to pass along some team recommendations for you.
And if you are looking for a company where you will be able to learn and grow, then I would love to chat with you about the opportunities over here at Real Broker.
Again, it’s Jeff Chubb. You can reach me at 617-775-7687 and all my other contact information is below.
Until next time!
#Real #Estate #Join #Team
Jeffrey Chubb
2024-04-22 14:52:16
https://bostonrealestateinvestorsassociation.com/new-to-real-estate-should-you-join-a-team/
Friday, May 3, 2024
The plaintiffs from Sitzer & Burnett filed a motion on Friday seeking preliminary approval for the proposed settlement. Brokerages and MLSs who were not included in the initial agreement must act by June 18 in order to be included.
#60day #clock #begins #brokerages #seeking #opt #418M #NAR #deal,
https://bostonrealestateinvestorsassociation.com/brokerages-interested-in-participating-in-the-418-million-nar-deal-must-act-quickly-as-the-60-day-countdown-has-officially-started/
#60day #clock #begins #brokerages #seeking #opt #418M #NAR #deal,
https://bostonrealestateinvestorsassociation.com/brokerages-interested-in-participating-in-the-418-million-nar-deal-must-act-quickly-as-the-60-day-countdown-has-officially-started/
Thursday, May 2, 2024
Avalanche home loan tokenization protocol raises $10M in Series A
“Homeowners effectively sell a portion of their home’s equity at today’s price and repay at tomorrow’s,” wrote Homium staff.
Homium, a home equity line of credit (HELOC) tokenization protocol built on Avalanche, has raised $10 million in a Series A funding round led by Sorenson Impact Group and Blizzard.
“Through shared appreciation home equity loans, Homium introduces a way for homeowners to borrow against their home equity without increasing their monthly debt burden,” wrote Avalanche in an April 15 announcement.
By using Homium, homeowners pledge a portion of their home’s future appreciation as collateral for loan equity in maintenance and repairs, debt consolidation or inheritance. At the same time, investors receive a tokenized asset tracking the price appreciation of a pool of shared homes on the protocol.
Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation-protected return in their core portfolios,” said CEO Tommy Mercein in a statement. The first such home tokenization loans are currently available in the United States state of Colorado.
The tokenized assets are backed by second mortgage loans made to owner-occupied single-family homes. Investors of the HELOC tokens are secured to the title like any other mortgage. Homium pledges that every home is “appraised by a third party, hybrid valuation service” with nationwide loan originators.
While the HELOC tokens are built on distributed ledger technology, they are not cryptocurrencies. Instead, the tokens are debt securities compliant with the United States Securities and Exchange Commission’s (SEC) Rule 144A regarding private placement to institutional investors. Regarding its technology, Homium explained:
“Patented technology gives Homium investors a real time window into every loan in each pool including its origination value and current marked-to-market estimated value. Because Homium loans are underwritten to a uniform standard that secures a % of the underlying home equity, this allows instant securitization of the note from inception. Investors receive pooled exposure to home price appreciation by state."
Since July 2023, Avalanche has pledged $50 million in investments for on-chain tokenization protocols, with a major focus on those specializing in real estate and digital collectibles. Meanwhile, financial services giant Citi recently described the tokenization market as the next “killer use case” in crypto.
Source - Avalanche home loan tokenization protocol raises $10M in Series A (cointelegraph.com)
https://bostonrealestateinvestorsassociation.com/blockchain-loans-for-real-estate-now-possible-get-your-future-equity-today/
“Homeowners effectively sell a portion of their home’s equity at today’s price and repay at tomorrow’s,” wrote Homium staff.
Homium, a home equity line of credit (HELOC) tokenization protocol built on Avalanche, has raised $10 million in a Series A funding round led by Sorenson Impact Group and Blizzard.
“Through shared appreciation home equity loans, Homium introduces a way for homeowners to borrow against their home equity without increasing their monthly debt burden,” wrote Avalanche in an April 15 announcement.
By using Homium, homeowners pledge a portion of their home’s future appreciation as collateral for loan equity in maintenance and repairs, debt consolidation or inheritance. At the same time, investors receive a tokenized asset tracking the price appreciation of a pool of shared homes on the protocol.
Homium is building a valuable new asset class for institutional investors, providing a new source of uncorrelated, inflation-protected return in their core portfolios,” said CEO Tommy Mercein in a statement. The first such home tokenization loans are currently available in the United States state of Colorado.
The tokenized assets are backed by second mortgage loans made to owner-occupied single-family homes. Investors of the HELOC tokens are secured to the title like any other mortgage. Homium pledges that every home is “appraised by a third party, hybrid valuation service” with nationwide loan originators.
While the HELOC tokens are built on distributed ledger technology, they are not cryptocurrencies. Instead, the tokens are debt securities compliant with the United States Securities and Exchange Commission’s (SEC) Rule 144A regarding private placement to institutional investors. Regarding its technology, Homium explained:
“Patented technology gives Homium investors a real time window into every loan in each pool including its origination value and current marked-to-market estimated value. Because Homium loans are underwritten to a uniform standard that secures a % of the underlying home equity, this allows instant securitization of the note from inception. Investors receive pooled exposure to home price appreciation by state."
Since July 2023, Avalanche has pledged $50 million in investments for on-chain tokenization protocols, with a major focus on those specializing in real estate and digital collectibles. Meanwhile, financial services giant Citi recently described the tokenization market as the next “killer use case” in crypto.
Source - Avalanche home loan tokenization protocol raises $10M in Series A (cointelegraph.com)
https://bostonrealestateinvestorsassociation.com/blockchain-loans-for-real-estate-now-possible-get-your-future-equity-today/
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