What we do
Earn.re is about to change the way brokers, investors, project sponsors and banks think about commercial real estate finance—and about the blockchain.
Our advanced trading platform will directly connect project sponsors and sources of capital for nearly every commercial and multi-family property type. It provides users with more control, enhanced security, lower cost, faster closings, and greater liquidity. Click below to learn more.
Technology
SECURE & COMPLIANT
The Earn platform was developed with cutting-edge technology to provide its users a secure and compliant means to finance and invest in US real estate.
RECORDS KEPT
The user interface and investor/developer dashboards provide access to a range of useful features, and since blockchain is at the system’s core, all historical activity and project records are stored securely and immutably.
ETHEREUM
At its core the Earn.re trading platform is powered by an Ethereum public blockchain. Qualified investors are able to acquire both equity and debt shares in vetted development projects represented by ERC1400 compliant Security Tokens. Solidity coded smart contracts ensure fast, secure, and accurate distribution of funds, dividends, and payments.
How it works
Investor Credentials
After completing an initial 3rd-party KYC/AML review and certifying as an Accredited Investor*, you’re eligible to receive Investor/Lender Credentials on the Earn Platform. Credentials enable you to:
- Review and invest in securities that are actively trading in real-time.
- Analyze and compare project share pricing.
- Identify new projects seeking capital.
- Negotiate for private placements.
As a credentialed investor/lender you’re able to invest in project-specific Equity and Debt shares anytime, and will receive one ERC1400 Security Compliant Token for each share purchased. Share ownership entitles you to pro-rata voting rights, and project income depending on the type of tokens purchased. All payments and distributions are governed by the smart contract rules associated with each token.
*Applies only to US investors
Sponsor Credentials
Developers and sponsors are eligible for platform credentials and able to list projects on the Earn Platform for equity and debt financing only after completing an initial 3rd-party KYC/AML review, accepting the Earn Listing & Underwriting Agreement, completing a financial review, and providing verification of prior performance.
Listing projects on the Earn platform allows developers and sponsors more control of project financing while providing fast access to a broad array of pre-qualified equity and debt providers.
Security Tokens
There are three basic types of tokens used on the Earn platform: Platform Tokens, Equity Tokens & Debt Tokens.
Platform Tokens
(Earn Stablecoin - EUSD) represent 1:1 USD, are used as platform currency, and are backed 100% by fiat currency held in bank escrow. Platform Tokens can be cashed-in at anytime with Earn for 1:1 USD. Earn intends to be registered as a regulated money services business under US money transmission laws prior to launching the platform.
Equity Tokens
Represent common equity ownership shares in individual development projects listed on the Platform. Owners of Common Equity Tokens have pro-rata project voting rights, and share in project income and profits.
Debt Tokens
Typically represent fractional ownership of a commercial first mortgage and note associated with the project’s real estate assets. Owners of Preferred Debt Tokens have preferred voting rights, have their funds secured by real assets and are entitled to periodic (monthly/quarterly) principal and interest payments.
Each ERC1400 Security Token issued is programmed with project specific smart contract rules ensuring timely, secure, and accurate returns to the token holders. Tokens can be traded and sold anytime via the Earn Exchange providing flexible liquidity to investors.
Investment Mechanics
Qualified Investors can open Trading Accounts on the Earn Platform. After making an initial deposit into their Earn Trading Account, the Investors are able to deploy their deposited funds into tokenized equity and debt securities associated with individual real estate projects traded on the Platform. At any time, Investors can sell their equity and debt tokens to other credentialed investors on the Platform providing a high level of liquidity.
The diagram below illustrates the investment mechanics of the Earn.re trading Platform.
Investor utilizes Earn.re platform to invest in listed development projects.
Earn Platform Tokens are created when Qualified Investors deposit fiat funds into their Earn account. Earn Platform Tokens represent 1:1 USD held in a US bank (escrowed until used – Stablecoin) and can be traded for Earn Equity and Debt Tokens.
Earn Equity Tokens represent 1 equity share in each real estate project.
Earn Debt Tokens represent 1 debt share (mortgage or mezz) in each real estate project.
A US Bank holds the Fiat funds deposited by Investors in escrow until the Investor exchanges their Platform Tokens for Earn Equity and Debt Tokens or cashes out their Platform Tokens 1:1 for USD.
Sponsor utilizes the fiat funds raised via the Earn platform to fund real estate project(s) with debt and/or equity.
Return Mechanics
When project returns are generated, the sponsor’s bank account is swept and the resulting funds are disbursed via smart contract to the investor(s). The investor(s) can wire the resulting funds to their private bank account, or deploy the new funds into additional equity and debt tokens traded on the platform.
The diagram below illustrates the return mechanics of the Earn.re trading Platform.
Sponsor produces returns from the project, i.e. preferred debt payments, cash flow, sales, etc.
Sponsor’s Bank Account is swept periodically for funds generated from the real estate project.
Platform Tokens are generated 1:1 USD by the funds swept from the Sponsor’s bank account and distributed to the Investor’s trading account via smart contract rules.
Earn Equity and Debt Tokens are programmed with smart contract rules to compute returns owed to the token holders and automatically distribute funds in the form of Platform Tokens.
Investor receives returns from the ownership of earn Equity and Debt Tokens, while maintaining constant liquidity.
Investment Mechanics
Qualified Investors can open Trading Accounts on the Earn Platform. After making an initial deposit of fiat funds into their Earn Trading Account, Investors are able to invest in tokenized equity and debt securities associated with individual real estate projects traded on the Platform. At any time, Investors can sell their equity and debt tokens to other credentialed investors on the Platform providing a high level of liquidity.
Return Mechanics
When project returns are generated, the sponsor’s bank account is swept and the resulting funds are disbursed via smart contract to Investors’ Trading Accounts. Investors can wire the resulting funds to their private bank account, or deploy the new funds into additional equity and debt tokens traded on the platform.
