Partnering to Introduce Tokenized Real Estate: Collaboration Between Mogul Club and Ava Labs for Web3 Investment Opportunities
Heythere! Let's dive into the world of tokenized real estate and the exciting development by Mogul Club, a platform created by ex-Goldman Sachs real estate pros. They're shaking things up with their innovative idea called Clubs - community-powered investment groups aimed at democratizing access to income-generating premium properties.
One of their first collaborations? A partnership with Ava Labs to launch the Avalanche Club - a real estate syndication initiative designed for Web3 enthusiasts. By joining forces, they can pool resources and buy high-end properties using digital assets such as stablecoins, without the need for intermediaries.
To better understand this transformation from concept to execution, we chatted with co-founder Alex Blackwood.
What sparked the original vision behind Mogul Club, and how has it changed with the addition of Clubs?
The original idea was simple - to democratize premium real estate investing by offering fractional ownership. Due to high capital requirements, exclusive networks, and informational barriers, access to such deals was limited historically. Mogul Club aimed to knock down these barriers, enabling everyday investors and high-net-worth individuals alike to invest in well-managed, cash-flowing blue-chip properties in a fractional manner.
With the introduction of Clubs, the vision has broadened to foster community-powered investing. Groups such as friends, families, alumni networks, and others can team up and learn while earning, investing in property together. Clubs introduce a collaborative, social aspect to Mogul Club, empowering communities to grow their wealth collectively and intentionally.
What pain points are being addressed that traditional platforms don't address?
Clubs rethink the conventional real estate investment model, targeting a tech-savvy, community-focused audience. Traditional investment has often been exclusive, shrouded in secrecy, and reliant on institutional middlemen. Clubs flip this paradigm by fostering a transparent, grassroots approach built on shared values and common goals. Mogul Club aims to lead community-led capital formation, allowing ecosystems like crypto communities, alumni networks, and others to form or join Clubs that align with their interests. As Clubs mature, we'll unveil premium, tailored features to meet the investment needs of both community organizers and participants.
What's the revenue model?
Mogul currently makes revenue through fees linked to fractional investments. We charge a 3% onboarding fee and a 2% setup fee, based on the property purchase price. These fees help cover expenses related to finding, vetting, and welcoming properties. Additionally, we collect 2.5% of rental income to coordinate with property managers and leverage institutional-level discounts. Note that this 2.5% minimally impacts investors' returns, as it's only charged if investors receive their return. All projected returns presented on our platform, including IRR projections, are displayed net of these fees.
How does Mogul ensure liquidity for tokenized real estate investors?
Mogul plans to introduce secondary liquidity options by Q2 2026. Until then, investor liquidity primarily occurs when properties are sold. In the meantime, investors enjoy real-time asset appreciation, monthly dividends, and tax benefits.
Are there regulatory safeguards in place, particularly for tokenized securities?
Mogul operates as an investment club and not as a regulated security. Consequently, conventional securities regulations do not apply. We implement stringent Know Your Customer (KYC) procedures to maintain compliance with applicable identity verification and anti-money laundering laws. Furthermore, our platform operates on the Avalanche blockchain, employing Snowtrace for transparency and Fireblocks to securely store users' wallets and keys. Fireblocks enforces security protocols and measures, such as secure custody, robust key management, and asset protection to ensure safe transfer and storage of digital assets. Investor capital is always placed directly into property-owning PropCo LLCs, protecting their investment even if Mogul faces operational disruptions.
Lone Star Ledger: Texas Clears Final Hurdle for Bitcoin Reserves Fund
Other than Mogul Club, Texas recently passed the final hurdle for their Bitcoin reserve fund - exciting news for crypto enthusiasts! For more details, check out the Lone Star Ledger article. 🤘🏼🚀💸
- Mogul Club, a real estate investment platform developed by ex-Goldman Sachs professionals, introduced their innovative idea, Clubs - community-powered investment groups that democratize access to premium, income-generating properties, by partnering with Ava Labs.
- The Avalanche Club, a real estate syndication initiative designed for Web3 enthusiasts, was the result of this partnership, allowing investors to pool resources and buy high-end properties using digital assets like stablecoins, bypassing intermediaries.
- Co-founder Alex Blackwood shared that Mogul Club's original vision was to offer fractional ownership in premium real estate to democratize access, but Clubs broadened the scope to foster community-powered investing.
- Clubs aim to challenge the traditional real estate investment model by providing a transparent, community-focused approach, addressing issues such as exclusivity, secrecy, and reliance on institutional middlemen.
- Mogul Club generates revenue through fees linked to fractional investments, charging a 3% onboarding fee, a 2% setup fee, and 2.5% of rental income to cover expenses and coordinate with property managers.
- Texas took a significant step towards crypto adoption with the final approval of their Bitcoin reserve fund, marking another exciting development for crypto enthusiasts.
