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Real estate has long been suggested by crypto fans as an area that could benefit from onchain records, whether it’s a blockchain-based deed or other data.
Real estate startup Mogul is using blockchain tech to bring fractionalized investment to the sector. It recently launched Mogul Clubs, which are user-created real estate investment groups using the Avalanche C-chain.
Now, Clubs are officially out of beta.
Avalanche developer Ava Labs has launched its own Mogul Club and is using the blockchain to power stablecoin-based real estate investments.
The goal of Mogul Clubs is “to give investors seamless access to high-yield, high-return single-family rentals across the US sunbelt—without the typical capital barriers or landlord headaches,” according to a release.
Mogul first launched back in 2023. It currently has over $22 million in assets on its platform. CEO Alex Blackwood told me they’ve already been able to give investors 10-12% cash-on-cash returns so far with an average internal rate of return (IRR) of 18.8%.
Fractionalized assets can sound complicated. But here’s how this works: When an investor funds a deal using USDT or a wire transfer, Mogul creates “a proprietary on-chain property NFT that represents their fractional membership interest in the LLC that owns the real estate,” according to Blackwood.
“Those tokens are not AVAX itself but custom ERC-1155 compatible contracts mogul wrote specifically for our platform, so all ownership records, distribution rights, and governance votes are immutably recorded on the chain,” Blackwood added.
Retail investors can join more than 30 different clubs. The startup says it vets every investable property on its platform, with the goal of giving investors the highest ROI possible.
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