Homebase is the next platform to move into the non-fungible token (NFT) real estate investment offerings. Utilizing Solana, Homebase has a mission of enabling investors to generate returns from rental properties starting at $100. Investors receive returns via dollar-based stablecoin USDC.
According to Homebase, each property is held in a limited liability company (LLC) whose ownership is associated with unique Homebase NFTs. The property is transferred using smart contracts, and the entire transaction takes place transparently on the blockchain.
Homebase’s first offering is in McAllen, Texas, for fractional ownership in a home. The three-bedroom home is estimated to generate an IRR of 10.13%. Tokens are currently on sale. the security is offered under Reg D and thus is only available to accredited investors.
Former Googler and Homebase co-founder Domingo Valadez says, “real estate has always been viewed as one of the best pathways to build wealth in America– it is part of achieving the American dream. Sadly today, owning real estate is harder than ever. The median home now costs $429k, out of reach for most Americans, especially young first-time buyers. With our platform, anyone in the US can invest in residential property, regardless of their financial background or location, for as little as $100.”
Alex Kim, another co-founder said was critical to ensure that the tokenized homes were legally sound and compliant under existing securities law. When reviewing the information on the company website, it appears that Homebase may issue securities under Reg A+ at some point in the future – thus opening up the marketplace to non-accredited investors.
By leveraging blockchain technology, Homebase aims to streamline the issuance process and the management of the digital security. No word on a secondary marketplace.
Homebase is a Techstars-backed company and part of the Slauson & Grid110 Friends & Family program.
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