What is MountX?
MountX is an international crowdfunding real estate platform dedicated to opening, inaccessible and complex real estate investing to anybody, anywhere, anytime.
How will the tokenization of assets change the real estate industry?
Traditionally speaking, the real estate market has always been intimidatingly complex, regardless of whether you were just analyzing it or looking to invest in a piece of property. Real estate is one of the most illiquid asset classes, requiring significant capital commitments for long periods of time and entailing long, expensive transaction processes. Billionaire Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate. The problem is that not everyone has access to investing in real estate until now. Tokenization is the process of signifying a fractional ownership interest in an asset with a blockchain-based token, it means to divide the asset into shares (tokens) that you can sell to investors. Because the security is backed by the real estate asset, they are therefore often called “security tokens” and whoever owns the token, owns a piece of whatever asset is associated with the token.
So, what makes us so confident that blockchain technology and real estate are such a good match? Here’s a quick rundown of the key qualities blockchain tokenization brings to the table: irrevocable documentation of the processes, impeccable transparency, traceability, accessibility, enhanced security, liquidity and cost reduction of processes.
Tell us a little bit about the specific properties that are being tokenized. Where are the first properties located? Are there more in the pipeline? How are these properties selected?
The first two properties MountX tokenized were two apartments in Queretaro, Mexico for a total price of $5.2 million Pesos / $250,000 USD. These apartments are rental properties with high demand in the growing city of Queretaro. MountX digital platform manages the entire lifecycle of real estate investment, from acquisition to management to disposition. We give access to our international community of investors through crowdfunding that allows for a smaller initial investment. Our in-house acquisitions team carefully analyses market opportunities with our own data-driven investment analysis. We are focusing in the Great Toronto Area analysing investment opportunities, to open them up to investors around the world. We are launching our first Canadian opportunity in Toronto before the year ends, and this will be the first of a series of Canadian properties that MountX will offer to North and Latin American investors. MountX plans to issue 15+ assets within 1-2 years. This international initiative is helping to expand the presence of real estate in the digital asset ecosystem on global scale.
When you look for technology to underpin the MountX platform, what kind of features are most important to you?
On the technology side, we had chosen to partner with Vertalo to build a full end application enabling real estate assets to be “tokenized”, enabling investors to more seamlessly participate in, manage, and liquidate real estate investments.
The core features we are looking for our platform are security, simplicity and accessibility. We manage to offer our investors this features with our blockchain application that includes access to an on-chain shareholder registry with triple-entry bookkeeping, API connections to private asset ecosystems, portable eligibility with KYC/AML investor verification processes, secondary liquidity via partner ATS’s, and key-less custodial blockchain wallets, all through one simple online platform.
How did you end up working with Vertalo and building this tokenization project on Tezos?
After a deep global research of the different players in the security ecosystem, MountX chose Vertalo for their adaptability, scalability and commitment of the team with a specific focus on real estate. We decided to go with Tezos as it offers powerful technical innovations in terms of consensus mechanism, smart contract security, and self-upgrade procedures. Tezos also has a supportive community, the “Tezos Foundation,” that is incentivized to help improve its protocol and the entire ecosystem in a systematic approach.