Invest from $250! The former Goldman Sachs team is disrupting traditional real estate investment with Avalanche.

Original Title: Mogul puts real estate investments on Avalanche

Original Author: Kate Irwin

Source of the original text:

Compiled by: Daisy, Mars Finance

Tycoon Group introduces real estate investment to the Avalanche blockchain.

The platform manages over $22 million in assets, allowing anyone to invest in tokenized real estate.

For a long time, cryptocurrency enthusiasts have believed that the real estate industry could benefit from on-chain records, whether through blockchain-based property titles or other data. The real estate startup Mogul is leveraging blockchain technology to bring fragmented investment opportunities to the industry. The company recently launched the "Mogul Club" feature, which is a user-created real estate investment group built on the Avalanche C chain. This feature has now officially completed its testing phase.

Avalanche development company Ava Labs has created its own Mogul Club and is leveraging the blockchain to support stablecoin-based real estate investments. According to the announcement, the goal of the Mogul Club is to "enable investors to seamlessly invest in high-yield, high-return single-family rental properties in the sunny regions of the United States—without facing traditional capital barriers or landlord hassles."

The Mogul platform was initially launched in 2023 and currently manages over 22 million dollars in assets. CEO Alex Blackwood revealed to me that they have provided investors with a cash return rate of 10-12% to date, with an average internal rate of return (IRR) of 18.8%.

Fragmented assets may sound complicated. But Blackwood explained how it works: "When investors participate in transactions using USDT or wire transfer funds, Mogul will create 'proprietary on-chain property NFTs representing their membership equity in a limited liability company holding real estate.'"

"These tokens are not AVAX itself, but rather custom contracts written by Mogul specifically for our platform that are compatible with ERC-1155. Therefore, all ownership records, allocation rights, and governance votes are immutably recorded on the chain," Blackwood added.

Retail investors can join over 30 different clubs. The startup claims to conduct rigorous reviews of every investable property on the platform, aiming to provide investors with the highest possible return on investment.

"The review process of Mogul is even stricter than that of Harvard University; less than one percent of the properties we come into contact with ultimately make it onto the platform," Blackwood told me.

Investors who join these real estate clubs can decide for themselves whether to invest individually or with others—with a minimum investment of only $250. This price threshold allows almost anyone to become an investor without the need for any qualifications.

Mogul was founded by two former employees of the Goldman Sachs Real Estate Investment Group. Their website also offers free rental property calculators, Airbnb income calculators, real estate calculators, and investment property calculators to help assess whether a property is worth considering.