SQM Investments PTE LTD, a company based in Singapore, plans to use cutting-edge tech to digitize real estate ownership.
Starting a real estate investment business is easier said than done. While it’s true that real estate is an investment option known to give higher returns, getting income properties set up is a lengthy process and a very restricted asset class because it requires big capital and “tedious” regulatory compliance.
However, according to the company, “times are changing” as new technologies like blockchain and artificial intelligence take the stage and invade every sector, including of course real estate. For SQM Investments, tech will “make headway to disrupt real estate investing practices worldwide.”
The company was founded by Diana de Castro, an entrepreneur and founder of StayHome Asia, a prize winner startup focused on providing accommodations for travelers, and Paulo Martin Santos, a professional in the banking and government sectors working with tech and telco. Wilson Talento is the head of technology: a full stack developer and expert in several fields like IoT and cryptocurrency.
How it works
The company has introduced a crowdfunding platform that uses blockchain to represent ownership of shares of income properties in RISE 2018: Hong Kong.
“The SQM platform ensures seamless and fast transactions that allows liquid trading of properties,” explains an official statement. The idea is that the project cna provide individual investors with direct access to a wide range of quality real estate offerings, all backed up with “historical data of returns of investments.”
What SQM wants to offer is assurance, discovery and accessibility to real estate investments. The company says that its value rests in four main facts:
First, they are accessible. Anyone can become a real estate investor “regardless of income or net worth,” something not previously possible in most real estate markets.
Second, they are reliable. SQM promises to get better investment returns to its clients plus a monthly passive income.
Thirdly, they offer diversity. Investors can diversify their real estate portfolio from a single investment.
Lastly, the use of technology. In other words, innovation. SQM thinks it can simplify real estate investing and provide liquid trading of properties.
The Blockchain effect
This is yet another example of companies jumping into the Tokenomics craze. What SQM Investments wants to do, essentially, is offer a decentralized currency to level the ground a bit. Of course, being the owner of that currency is where the business work for the company.
It’s a compelling that idea that nonetheless will be put to the test in the coming months and years, not just in this particular case, but in all other projects that are emerging and that want to use blockchain as a solution.
SQM envisions a sharing community in real estate by delivering artificial intelligence, where developers, investors and renters can help build real estate wealth together. Its success will be as tied to the company’s performance as it will be with the success of blockchain itself.