Mogul Launches Blockchain-Based Real Estate Investment Clubs

Mogul, a real estate investment platform, has launched a new feature called "Mogul Clubs" that utilizes the Avalanche blockchain to offer tokenized real estate investments. This innovation allows investors to participate in high-yield, single-family rental properties across the U.S. with a minimum investment of $250, making real estate investing more accessible to a broader audience.

The "Mogul Clubs" feature, built on the Avalanche C-Chain, enables users to create investment groups for real estate. Ava Labs, the developer of Avalanche, has already established its own Mogul Club, utilizing the blockchain to support stablecoin-based real estate investments. The primary goal of Mogul Clubs is to provide seamless investment opportunities in high-yield, high-return rental properties without the traditional capital requirements or landlord responsibilities.

Mogul's platform, launched in 2023, has already delivered 10-12% cash returns to investors, with an average internal rate of return (IRR) of 18.8%. The platform's chief executive officer, Alex Blackwood, explained that when investors use USDT or wire transfers to participate in transactions, Mogul creates a proprietary on-chain real estate NFT that represents the investor's share in a limited liability company holding the property. These tokens are not AVAX but are custom contracts compatible with ERC-1155, ensuring that all ownership records, distribution rights, and governance votes are immutable on the blockchain.

Investors can join over 30 different clubs on the platform, each offering a variety of investment opportunities. Mogul conducts rigorous due diligence on every property listed, aiming to provide the highest possible returns. Blackwood emphasized that the platform's vetting process is more stringent than that of Harvard University, with less than 1% of the properties they review making it onto the platform.

The low entry threshold of $250 makes real estate investing accessible to a broader audience, eliminating the need for extensive qualifications. Mogul was founded by two former employees of the Goldman Sachs real estate investment group. The platform also offers free tools such as rental income calculators, Airbnb income calculators, and property evaluation tools to help investors assess potential investments.

This move by Mogul represents a significant step forward in the integration of blockchain technology with real estate investments. By leveraging the Avalanche blockchain, Mogul is able to provide a transparent and secure platform for investors, while also lowering the barriers to entry. This democratization of real estate investing could attract a new wave of investors who were previously deterred by the high capital requirements and complexities of traditional real estate investments.

The success of Mogul Clubs, with over $22 million in assets on its platform, demonstrates the potential of blockchain technology in the real estate sector. As more investors become aware of the benefits of tokenized real estate investments, it is likely that we will see further innovation and growth in this area. Mogul's approach, which combines rigorous vetting processes with user-friendly tools, sets a high standard for other platforms looking to enter this space.