Michael Moll on investing in real estate through Reitium blockchain platform

0:22forward to hearing a little bit more about radium if you would start with the elevator pitch behind radium I know we're all looking to hear it perfect so Rita is a global real estate investment and crowdfunding platform built on blockchain it allows anyone around the world to invest in real estate those little Z dollars that's awesome that's that's a great pitch and why did

0:48you guys start you know why did you start reading did you see the need for it in the industry yeah so I was very fortunate my two co-founders one of who I met two years ago at a crowdfunding conference we were working on a separate passion project travel app and we actually then went on and won a Richardson blockchain and we won a hackathon around the idea of putting

1:13titles on the blockchain you know we understand we pain and then solution and you know we came back we thought okay what can we do with a digitized blockchain there are many facets around that one of those in front funding and our co-founder Thomas Park really jumped on that side and said you know what he could see the need we could see the need as Millennials is very difficult to own

1:35real estate real estate being one of the greatest investments that people make one of the greatest sources wealth one of the most stable investments was out of reach of many people blockchain tokenization really enhanced this ten-year movement of crowdfunding would allow us to compliantly get millions of people's if not billions of people who've been excluded in real

1:56estate to be able to invest and so we really did our research traveled to a few conferences and we saw that this was something was possible we then went out and raised six hundred thirty thousand dollars from friends and family and that really showed us how big of a pain point and how big of a solution creating just by the response from our community who said this is something

2:17that needs to happen and that was over a year ago that's that sounds like a great journey and it's really interesting to be incorporating real estate with the blockchain you know and if you would just drill down a little bit further you know what are the specific benefits to users of the platform while you're integrating blockchain what blockchain are you using and why oh great that's a

2:38really good question so first of all what we're going to start with is blockchain is an immutable ledger mutable database really allows us to have like you know cutting-edge document storage document protection and when it comes to investors really allows us to have really great disclosure practices right and so on the blockchain is the private title registry of all the all

3:01the properties their title the documents that pertain to that who signed those when they sign those as just haven't moved there so it gives you their great chain and responsibility for everyone participating anyone around the world who want to invest their kyc know your customer anti money laundering all of those documentation and checks also get stored on the blockchain and so then we

3:21can pull to those from time to time to make sure every single trade is compliant the third thing is the payment right now we really want to have people from all over the world to be able to participate it's very difficult from someone from Benin or Uganda or Catina to send their money to North America and how do they trust different third parties or taking a high fee there by

3:42using different crypto currencies one they can have an affordable way to send money globally two they have an amazing tracking system to know that their money actually went where it went the second part of your question we're using IBM hide the ledger fabric the reason for this is one it's very scalable hyper ledger was invented by the Linux Foundation over 150 companies came

4:03together to support it IBM made their version fabric they have amazing hosting distributed hosting scalability in terms of 3,500 transactions per second but it's also a private permission launching and so what that means is when it comes to investing you need to be able to protect certain things so they're parts of our blockchain that has public information

4:23so someone will be able to know a million dollars got in bed in this condo but the particulars of each of their investor their private information gets protected we can unencrypted that and share that with same regulators tax authorities etc but if you are for example the hospitality chain or you're a reading who's our platform we can protect those two groups

4:45from each other and have private transactions there so we're really built on data integrity and understanding the needs of securities law consumer data protection and the needs of investor groups to have that data protected that's really interesting Michael I find it very you know forward-thinking to be using hyper ledger fabric as well because I know the majority of

5:10blockchain projects have been gravitating towards the etherion blockchain and as you specifically mentioned in the real estate industry there's a lot of need for privacy you know in certain things and with the etherium if you're using just the etherion public blockchain a lot of that information is available to everybody and that's something that we need to be

5:28worked worked through right now so it's interesting that to see that you guys are using hyper ledger which is you know being worked on by IBM so is there a lot of traction from property owners to want to use the system what are the specific benefits for people that own property to be incentivized to use rediem yeah so that's actually a really good question

5:50so we're very proud we've been on a leap year long road trip today we have eight hundred thirty million dollars with assets that are gonna be listed on our platform that's from hotels to residential to commercial to mixed-use buildings and most of these are in North America but we've actually been prospected about five other countries so we have we're starting with Canada and

6:12United States real estate really great jurisdictional and great real estate markets but we have interest from England Germany France Singapore Thailand and even China but we want to parse it out and the second part of your question is why would they use returns what they like about us is they can reach a global pool of verified investors where the KYC AML gets through

6:38they get a portal to put up their deals and on the backbone of our compliance so we work within the regulations of Canada in the United States so if they need to find a broker-dealer if they need exhibit market dealer if they need an offering memorandum if they need to understand what is the best vehicle for their deals but we have deep knowledge of Reggae

7:01Reggae Reggae Reggae plus reg CF crowdfunding rules in Canada so we can allow them to be a hundred percent compliant the whole time they use our platform and they can double their deals and half their back office or County or legal visas they really really like that a great great example will be one of our clients out of Japan they sell currently sell Texas real estate to Japanese

7:25business people in Japan negative interest rate so people want to get their money out right now they don't do 2,500 deals a year but this is 150 to $350,000 homes to one individual with us they can actually a hundred ex their market potential they do in-person seminars all across Japan they actually want Japan startup of the year and so they're gonna jump on us white-label our

7:47platform and start selling fractional ownership in u.s. real estate for those a thousand dollars and they can get going with us like right away starting next year and we have that back-end infrastructure and so that's just a great example one of our clients that's awesome ya know eight hundred and thirty million dollars worth of properties you know to be listed and the fact that

8:08blockchain allows for globalization you know to make those connections like from Japan to the States so easily I can I can understand you know why why there's an attraction for property owners on the platform right now so do you guys have any other key customers or partnerships that you guys have secured down for the platform already yeah so we're really

8:28excited in terms of looking at our platform and we see Oheka Castle is a the largest second largest residence the United States turned a 50 million dollar property and it's been renovated and we're going to be coming on to phase 2 where they're gonna build a hundred and eighty luxury condos on Long Island I think this whole deal is undervalued and it's gonna get a great boost

8:54cause Amazon just moved out there and so they've chosen us to be a new-build construction partner out there we're really excited we're in talks with a company called kudu and they are one of the best they were on the sustainable architecture award last year in the United States a global award around modular homes and they want to make modular hotel resorts in unique places

9:20that are completely eco friendly so that's another great customer there then out after that we've got great family offices and reads who are looking to liquidate their portfolios in the United States so we've got really got something for everyone we're very excited that when the marketplace launches that you know investors and probably owned as a light will be able to come find

9:37something that they like and again all of these properties are vetted so we vent them three times get them when it comes to the appraisal independent accountant independent lawyer and then we have an investment committee that really looks over the darkstone you as an investor when you cover the property you're looking at top quality deals and have a high probability for success and

9:56and that really goes a long way that's awesome and I've gone from and I'd really like quality over quantity right well you guys already have the quality leads I actually I've seen you guys you know traveling around a lot I've seen you on conferences in Canada I've seen you at conferences in the States you know I believe that you guys have actually been to what nine nine

10:17countries like 15 plus conferences this year you know exploring and looking for more potential partnerships you know in what conferences or locations around the world did you find you know the most promising prospects so far yeah it's been an amazing amazing time being on the road since January you know we have to really give a shout out to a few places I mean Japan was amazing they

10:42really embraced blockchain and tech Korea I think career is leading the way we were very fortunate to have an advisor out there and to have our co-founder as well coming from there so we had a really a really great great time there engaging people Malta as you known as maybe more views no it's just cutting edge leadership when it comes to a black and white bill regulating

11:04digital financial assets we've actually set up secondary company there we're looking to get a global exchange license out of Malta and so that has to get a big shout out you know tank Web Summit 70,000 people brilliant we were really inspired by learning from a lot of the big tech companies there but also engaging a lot of private equity investors that's

11:27really a great networking frenzy there but the United States you know we were really happy to be in Boston and LA there's a law and great great strong community out there and then finally we went to Toronto as well and here in Vancouver with the conference that's coming up that I know that you know invention is also gonna be there as a national crowdfunding conference here in

11:48Vancouver so we're very lucky that real estate is a global language and so we just really are excited to launch in North America because this is real estate ever been around the world people want to get into North American real estate I completely agree so can you tell me a little bit more about your guys's team do you guys have a strong background in

12:09real estate as well as technology yeah so really a really great way to start so the three of us myself my co-founder or Forte and Thomas Park all serial entrepreneurs so that our fellow spitted that spirit and that wind deep understanding of social impact is just read from the beginning when we look at Thomas he's at 14 years in real estate residential real estate expert sold over

12:35half a billion dollars here in Vancouver we look to our technology our CTO and Gillette he was on the etherium founding team he worked previously in Accenture and he was the lead architect on the Bank of Canada's our three quarter blockchain experiment and that is where they were creating a disputed ledger to do instant settlements of checks and balances and

12:59right now it takes about five days to clear this Keith system into probably the hours so he brought that same level of architecture to our platform we're so proud of that on the on the real estate side and we look at institutional real estate we have a great adviser Thomas treatment he works for Blackstone he's a senior vice president there he personally

13:19rewrote they read strategy and was pivotal in there nine point six billion dollar Asia rephrase so he's been giving us deep deep insights into how to structure our platform off the reef and the institutional markets so you know our team is really stacked we have one of the best launching lawyers in Canada Michael Stevens works for fax and fast scan and you know work an hour with him

13:42is like six hours with you know with your average lawyer so you know we feel our team's really rounded out our team has great diversity we really have a hunger to deliver it so all those all those factors coming together are putting us in a strong position in this race to be the global real estate exchange that's awesome that's a great back story Michael thank you and I also

14:03looked into you know rediem is working on a security token offering an sto could you provide a little bit more details about that yeah so right from the beginning we decided you know we saw the utility token market and we didn't want to force a utility token economy into our platform so we chose hyper ledger private commission and no need for an internal cryptocurrency so you

14:27can actually buy real estate on our platform using any crypto you want we have third party owned TC customers you can trade that and we turn that into fiat that gets paid to the to the asset owner as it comes to our security token or offering our first security token offer me is going to be coming in the new year next year 319 and it's going to be based on a fundable so it's gonna be

14:47asset fact so when you invest in our security token we're gonna use 90 percent of that money to buy assets in a font ten percent for management in a few things and we're gonna pay dividends out to those token holders on a monthly basis first based on the rental returns and or least slashed loan returns from the assets that we buy we're gonna start regionally so we're

15:09gonna start with section of North America and we're going to do multiple raises over time so we're really excited this has been a model we've wanted to do from the beginning is to have a dividend producing security token that also has appreciation so when when the property's appreciated we're also to be giving that appreciation back to the token holders

15:26we built a great team that's helping with us with that in January people said security tokens were crazy now we know we're 11 later security token exchanges are opening people are starting to understand it and so we think very happy we waited and you were very excited to announce that we will be talking about that in the new year so watch the spot reaching security token as dividend

15:48producing awesome Michael yeah security tokens you know have been a talked about throughout 2018 and I'm excited to see how you guys roll out with the sto in 2019 and I'm sure that it will be something that happens more often in the industry and we're very very early still so that's all the time we have right now is there any way that the viewers can

16:10find more information about radium get involved with the community what's the best way to find out more so yeah the best way to find out is to go to e TM comm there you're gonna be able to see a link to get into our telegram our group or building a very vibrant community or online all the time come in ask questions learn about how you can watch our videos see how you can invest in

16:32real estate under a minute and really we have great medium articles we published every two weeks a great update I would say learn about crowdfunding learn about blockchain and come see how every tiem is here to make its mark in a fractional ownership and opening up market Michael Maul CEO and co-founder of radium it's been a pleasure talking to you today I'm looking forward to

16:53following up with you guys in 2019 and to see how radium is growing and I thank you for your time thank you so much Ashton thank you for your time and thanks to the viewers for watching this thank you