By Riley Kaminer
These days, it’s hard to keep up with inflation – much less make a profit on your investments. Across Latin America, where as many as 70% of residents are un- or under-banked and inflation rates are in the double digits, preventing your cash from eroding is even more difficult.
Spanish startup Reental offers one potential solution. Their blockchain-based platform enables users to generate a reported 10% return by investing in real estate.
The idea is that Reental provides investment opportunities in a wide range of properties around the globe – with a focus on Europe, up to now. Users then purchase a minimum of €100 of tokens, which can be used to invest in one of Reental’s homes. Once that transaction has gone through, users are able to collect monthly dividends that come from the rental of that property. If a property eventually sells, the investor receives a portion of its appreciation.
Upwards of 8,000 people from more than 55 countries have used Reental so far. And now, the platform has its sights set on expansion into the Americas, with Miami as its hub.
In September, Reental named Key Biscayne-based Fernando Ors its president of the Americas region. The Spanish real estate executive, who has been based in Miami for more than a decade, explained why Miami made sense for the company.
“Miami is a highly strategic hub if you’re interested in building an American network,” he told Refresh Miami, underscoring his years of expertise assisting Spanish companies expand.
“Miami especially makes sense for companies looking to expand to Latin America,” he asserted, noting that Latin America is often the first market outside Europe that Spanish companies enter. The Miami advantage, in Ors’ estimation, is that you can get the best of Latin America and the best of the US – no compromise needed.
Latin America is already Reental’s most popular market. The focus on Miami will enable Reental to double down on its involvement with these consumers, while also enabling the company to start making investments there.
Ors signaled the company’s interest in purchasing property in Tulum, Mexico, thanks to its “very attractive economic conditions and large demand from investors.” Reental is also beginning to tokenize some apartments in Key Biscayne.
The tokenized aspect of Reental’s platform is a unique take on the fractional real estate investment space, which has been growing in Miami and globally. Advantages include liquidity, which enables investors to exit their position with little to no friction; no intermediaries, which makes for cheaper transactions; and increased automation, transparency, and security thanks to the smart contracts underlying each transaction.
The average investment on the platform is somewhere around €300 to €500 – although Ors said that it is not uncommon to see users with six figures invested in the platform. According to Reental, nine out of every 10 investors reinvest in the platform.
Founded in 2020, with the first properties tokenized in 2021, the company now has over 30 employees around the world. Ors is currently the only Miami-based employee, but the startup has plans to grow its team in Miami as its Americas strategy accelerates.
Going forward, Ors explained that the company hopes to further its mission to “provide financial tranquility, independence, and freedom to Spanish-speaking savers and investors.”
“From a social perspective, I think we have an antidote for the economic situation in Latin America by providing investors with a way to hedge inflation,” he said.
“We are just in the beginning of a technology, financial, and social revolution. And we are more than happy to lead it in the Spanish speaking market.”
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