Summary

• Shareland’s Mission: Democratize access to real estate investment by providing diversified exposure to real-world real estate
• Current real estate investment channels are inaccessible and difficult to manage: Direct home ownership is capital-intensive, illiquid, and undiversified. REITs and crowdfunding platforms are not well connected to the returns of housing markets, and investors often have limited control over investment activities.
• Shareland enables a flexible and diversified medium of investment: By pegging synthetic tokens to real-world home values, Shareland creates neighborhood “stablecoins” that allow investors to access the returns of the market without direct asset ownership.
• Shareland aims to create a positive impact on underserved communities: With profits generated from the platform, Shareland will invest in community improvements and resources for underserved neighborhoods.

Shareland’s Mission

At Shareland, our mission is to revolutionize the residential real estate market by democratizing access to investment opportunities and creating long-term, positive impact for underserved communities. We believe that everyone should have the opportunity to participate in the real estate market, and our innovative platform empowers investors to gain 1:1 correlated exposure to residential real estate assets at the neighborhood and/or zip code level.

By leveraging blockchain technology, we aim to remove barriers and provide a transparent, inclusive marketplace where individuals can invest, grow their wealth, and contribute to the development and revitalization of underserved communities.

The Problem with Real Estate Investing

Current Residential Real Estate Investment Vehicles are Inaccessible, Illiquid, and Undiversified

 “Your home is your castle” has been true for generations. Your home provides shelter, security, and wealth. It does so, however, only if it is in the right place, at the right time, over a long period of time. A home is a (very nice) castle for a tenured Stanford University professor who bought a Palo Alto house in 1995 and hasn’t moved since.

Except, nobody really lives this way anymore. Increasingly dynamic economic and social structures generate a need for flexible housing solutions. Just ask our favorite professor’s students. They are all bright and capable, but their housing needs change often, and substantially so. The rental market, which has expanded recently, meets their housing needs. However, if they wish to invest in residential real estate, their options are much more limited.

The first, and often most lucrative way, is to buy a home directly, rent it to earn passive income, and rely on real estate’s steady capital appreciation to cash in on equity upon selling. However, as housing values continue to rise due to housing shortages, buying property becomes increasingly unaffordable for most investors, much less younger investors that are early in their careers. Not to mention, the time, effort, and cost of maintaining the property over time further decrease returns for investors. Furthermore, a typical homeowner gains exposure to a specific housing market through the ownership of a singular property that may or may not reflect broader trends in a specific locale. Most American homeowners also concentrate a meaningful portion of their investable assets into their residential dwelling, further limiting their ability to diversify their broader portfolio.

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Residential real estate investment trusts (REITs) present another option. With REITS, investors invest in companies that operate single-family or multifamily rental properties. In theory, one could separate their housing consumption and investment by renting and simultaneously investing in those REITs. Unfortunately, the REITs option cannot provide exposure to a specific neighborhood, or even to a specific city, unless they acquire every single piece of residential property in that area. Furthermore, even when exposure can be achieved, the returns on the REITs are not well connected to the returns on the housing market due to high fees, sensitivity to interest rates, and management variability. For example, in May 2013, when the Fed suggested that the government may cut back on asset purchases earlier than most market participants expected, the Dow Jones U.S. Select REIT Index dropped 17.9% from its peak on May 21—the day before the Fed comments–to its 2013 low on August 19.

Crowdfunding is another alternative, where investors pool assets to fund real estate projects. However, crowdfunding is highly risky for most investors due to the lack of liquidity. Investors are often unable to pull out from the project in emergencies and this risk is further compounded by project-specific risks such as construction delays and cost overruns, and limited control over project management.

With the current state of existing real estate investment vehicles, investors essentially do not have a self-guided, diversified way to invest in residential real estate.

The Shareland Solution

Shareland Enables Highly Liquid, Diversified Exposure to Residential Real Estate Markets

At Shareland, we aim to tackle those problems head-on by emulating the investment experience of direct property ownership, while eliminating the costs associated with ownership. Shareland has created a real-time web3 exchange for neighborhood tokens that are tied directly to real-world real estate values.

Investment Vehicle: Synthetic Tokenization

The Shareland platform utilizes neighborhood-level land tokens, which are synthetic tokens pegged to the dollar per square foot of residential real estate in that neighborhood. Metaphorically, think of land tokens as neighborhood “stablecoins.” As such, Shareland allows users to diversify beyond singular properties, but also retains enough specificity that returns are closely tied to specific housing markets, as opposed to the variability of entire metropolitan areas.

To provide accurate, real-time feeds of real estate prices, Shareland has created an oracle that aggregates and reviews transaction data as sales occur. Our oracle is designed to capture the market evolution of homes in a neighborhood over time, much like if investors were to buy a property in that neighborhood and hold it over time. Because our tokens are tied directly to real-world prices, they exhibit lower levels of price volatility compared to cryptocurrencies that are priced on trade activity.

Our platform allows users to invest:

• Any amount – from a dollar to tens of millions of dollars
• In any geography – from a specific neighborhood to the entire U.S.
• For any amount of time – from one day to forever

The Shareland Community Impact

Beyond increasing investor access, Shareland also aims to create a meaningful, positive impact on communities. With revenues generated from the platform, Shareland will partner with local organizations to deliver community improvements to underserved communities, extending the benefits of appreciating home values in high-demand neighborhoods to underserved neighborhoods. Through decentralization, we aim to create a self-sustaining cycle of positive impact in a way that no other synthetic or derivative instrument could.

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While Shareland is launching first with U.S. neighborhoods, our vision extends far beyond that, to any neighborhood around the world. At Shareland, we believe that everyone deserves access to the largest, and most consistent asset class in the world. Together, we're transforming the way people invest in real estate and building a future where financial opportunities are accessible to all.

To preview Shareland and gain access to exclusive platform benefits, join our waitlist at: https://www.share.land/

Stay tuned for updates from Shareland in the coming weeks!

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