Property renters are a priori the losing side at property transactions. Tenants cover just for the right to use real estate within a limited time without receiving anything longer in return. To alter this situation, the RET platform will provide an instrument for collective funding, which may be employed by a large number of people.
Funds collected for ITO will be utilized to buy a real estate, which will then be rented, in sequence to income generation (lease payments) and its subsequent distribution between investors and tenants. Tenants, as participants of the “RET”, will get part of the distribution of income. That will allow them to purchase property in the future. Bringing together tenants and investors, the “RET” satisfies the interests of all its participants.
Providing investors using the crypto token RET — a liquid income-generating asset, tenants get an unparalleled opportunity to convert a part of their capital from every rental payment to RET tokens. They can buy property or utilize RET tokens for additional functions. The undertaking of this “RET” group is to make a decentralized and self-regulated organization with a minimum number of intermediaries.
A problem of the tenant that RET fixes
At the present time, around 1 200 000 000 people do not have their own accommodation to stay. Those that are not able to buy residential space or buy home from the mortgage are forced to rent real estate. They spend 30-60 percent of their earnings on payment of lease payments. And all these funds are irretrievably lost. Commercial real estate renters also face the loss of cash that's spent on rental payments.
The Owner's problem
Offering your property for lease on the standard scheme, the owner typically does not receive a motivated tenant. Consequently, there might be periods when the property is empty, and the landlord gets the capacity to make income from the letting of dwellings for rent. The same difficulty is the possible damage to the property owner's property and reluctance to compensate the damage to the tenant.
The Investor's issue
Having spent a huge sum in real estate, in order to obtain income in the shape of leasing payments, the investor may eliminate profit in the absence of customers wishing to lease a property. Investors with inadequate funds for the purchase of property aren't able to take part in buying low risk asset offering a stable income.
Summary of Ret and the HAT Token
A minimum amount of HAT (1 HAT) tokens is sufficient to utilize some smart contracts. In other smart contracts, (lease auction, voting for the purchase of real estate) that the number of HAT tokens used to cover transactions depends on the positioning of the advertisement in the search bar.
The more a user pays for a trade with HAT tokens, the greater the advertisement in the search bar.
More details about the RET platform and it’s associated HAT token can be read about in the company’s whitepaper, or may be viewed on the company’s website for free of charge.