Summary

In order to understand how Real Capital Blockchain (or simply referred to as ‘Real Capital’) Tokens work, it is important to understand what Real Capital is. In simple words, Real Capital is a business that uses the capital it has raised to purchase real estate such as residential real estate. The capital is raised from the general public or any investor who wants a fractional share in the real estate the business aims to buy. The business then rents the property to a tenant under an agreement and the rent is collected on a monthly or weekly basis, based on the terms of agreement. After the rent has been received, the revenue is then distributed to the investors as earnings based on the percentage of yield. The only difference is, rather than signing a paper contract after investing the money, the investor is given a security token on the blockchain, that security token has the information including the amount invested, who it belongs to, etc.