Paris – November 6, 2019
Equisafe and Masteos will soon launch a platform for pooling rental investments between individuals via the blockchain. On November 6, 2019, the two partners conducted a first technical demonstration at the RENT Fair, an exhibit specializing in real estate innovations: on this occasion, an individual monetized his borrowing capacity, allowing another individual to benefit from it. This transaction is a first step towards the democratization of rental investment for all banking profiles with equity, including fixed-term or temporary employees and freelancers usually disadvantaged to obtain credit.
The materialization of change in borrowing capacity makes history
The operation, named RENT, was entirely orchestrated by Equisafe, an investment platform, and by Masteos, a consulting and rental property management company. The transaction took place between two individuals:
- Florian, a full-time lawyer with a permanent contract, owns an apartment in Rennes bought on credit to make it a self-financed rental investment (i.e. the rents received should be higher than the monthly payment of his loan). He needed equity to finance other projects but did not want to sell his apartment.
- Paul, a freelance graphic designer with regular customers and making a comfortable living, sought to invest, but could not get the appropriate bank loan.
Equisafe and Masteos offered them a simple solution: that Florian could “monetize his borrowing capacity” with Paul.
For this, Florian created a simplified Joint Stock Company (an “SAS”) to which he sold his apartment via a classic notarial act carried out by the law firm Thésée Avocats Notaires. The SAS, managed by the real estate expert Masteos, was then numerically divided into a thousand actions (called “tokens” or digital tokens) via blockchain technology on the Equisafe investment platform.
On November 6, 2019, Paul bought 41% of the shares of the company, thus becoming co-owner of the apartment with Florian.
Let’s emphasize that this apartment is auto financed, i.e. rents are higher than the monthly credit payments and additional charges. Florian can therefore benefit from his loan investment, as well as recover a share of the sale when the loan is paid off in full (or before if Florian and Paul were to agree).
Property management provided via blockchain technology
Blockchain technology was chosen to carry out this operation because it greatly facilitates the management of real estate assets.
On the one hand, a digitized asset can be virtually divided into an infinite number of shares (sometimes millions of tokens), making it possible to set very low investment amounts and multiply the number of potential investors in the same property.
On the other hand, tokens make it possible to ensure simplified and automated management of the life cycle of the investment. Each token is in fact comparable to a digitized action containing all the property rights linked to a share allowing flow management (dividends, reinvestments), and provides a clear vision on rental management.
Supervision of the latter to be provided by Masteos, who will guarantee the solvency of the assets and ensure their rental management through the companies holding the apartments.
In the end, the investment will be easier for everyone: individuals can register in just a few clicks on Equisafe who will (or will not) validate their profile. Then, the information entered (of course encrypted) will be immutable and verification of profile’s eligibility to invest can be checked automatically on the blockchain. Thus, the mutualization of rental investment (even with individuals who do not know each other) will be much easier.
Democratization of rental investment for all banking profiles with equity
In France, more than 25% of the active population is neither employed nor holds a permanent employment contract (“CDI”), i.e. nearly 7 million people. Unable to justify a continuity of income, people holding a fixed-term employment contract, temporary workers and other freelancers, some of which sometimes earn a very good living, are abandoned by traditional banks that make it difficult for them to invest in rental real estate. They therefore lack borrowing capacity. At the same time, bank profiles with permanent job contracts have a borrowing capacity that they could easily sell to other individuals to retrieve shareholder equity.
Based on this observation and the difficulty of investing, Equisafe and Masteos wish to democratize the rental investment for people holding equity but who are neglected by banks.
In the next few months, they will propose an improvement version of the system setup for the RENT fair, directly accessible via the Equisafe platform. This blockchain loan capacity trading platform will be open to the general public and will allow everyone to quickly split and monetize their real estate holdings.
Amélie Rochette – firstname.lastname@example.org – + 33 1 41 16 42 33
Equisafe is a digital investment platform whose mission is to democratize access to financial assets. In June 2019, Equisafe organized the AnnA operation, the first real estate sale in Europe using blockchain technology.
Masteos is a technology company specializing in high yield rental investment. Masteos reinvents the investor experience by digitizing four major services, all on the Masteos application: buy it (invest), flip it (renovate), track it (manage), swap it (exchange).
About Thésée Avocats Notaires
Thésée is one of the first multi-professional “lawyer-notary” companies in France. The firm accompanies its clients on the legal and tax aspects. Driven by an innovative entrepreneurial vision, Thésée uses its legal and notarial expertise to meet the increasingly complex needs of businesses and individuals. Two associates, a lawyer and a notary, pool their legal expertise to provide a 360 ° -funded multidisciplinary solution.