Fractionalized Real Estate
Published on May 10, 2023
Author : Greg Hauw, Founder & CEO, Ohanae, Inc

Ohanae, Inc., ("Ohanae") is at the forefront of real estate innovation with its latest initiative. Ohanae Series LLC ("Ohanae Series") will be established in partnership with a New York-based real estate expert. Ohanae Series aims to simplify the real estate transaction process, broaden investor access to real estate investments, and improve investment liquidity.

Using Web3 technology, and digital asset securities, Ohanae Series seeks to offer a real estate tokenization service that would allow sellers to tokenize their properties, enabling multiple investors to purchase a fractional ownership in a single property. These tokens are created using the Ohanae Equity token protocol and sold as equity tokens in Regulation A+ offerings, accessible to domestic or foreign investors, as well as to institutional, accredited, or retail investors.

One of the key advantages of Ohanae Series is its use of a Series LLC structure, which streamlines property sales and minimizes costs. The Series LLC is responsible for the initial property assessment, rental management, and maintenance. When a seller engages Ohanae Series to sell their property on the platform, a new protected-series LLC will be set up to raise capital via a tokenized Regulation A+ offering of membership interests. Each protected-series LLC represents a single property, allowing Ohanae Series to manage hundreds of properties with ease.

Ohanae's internal deposit coin, the Ohanae Coin (OUSD), serves as the sole means of payment and settlement for all transactions on the Ohanae Platform. Issuers are required to accept OUSD in exchange for issuing equity tokens, providing a secure and seamless transaction process.

In addition to its tokenization service, Ohanae Series intends to offer a range of services, including Virtual Data Room (VDR), Know Your Customer (KYC), Payments and Settlement Services, and Secondary Market. The VDR contains property-related documents, such as appraisals, inspections, titles, and purchase agreements, as well as documents for the security issuance used to fund the real estate projects. Only KYC-verified investors are allowed to review the materials.

Ohanae Series' commitment to innovation and efficiency has earned it a place as a leader in the real estate industry of the future. Its integrated approach to fractionalized ownership and Web3 equity crowdfunding and trading technology offers to revolutionize the way we buy and sell property, providing increased accessibility, liquidity, and transparency for investors.

In conclusion, Ohanae Series LLC is a real estate technology company that offers a comprehensive suite of services to streamline the real estate transaction process, broaden investor access to real estate investments, and improve investment liquidity. Its innovative coupling of the Series LLC structure and digital asset securities makes it a prospective game-changer in the real estate industry.

Disclaimer

Ohanae Securities LLC is a subsidiary of Ohanae, Inc. and a member of the Financial Industry Regulatory Authority and Securities Investor Protection Corporation (FINRA/SIPC). Additional information about Ohanae Securities LLC is available on BrokerCheck.

Ohanae Securities LLC is currently in discussions with FINRA regarding the potential expansion of its business lines, which may include custody and related services for crypto asset securities. Any statements regarding the capabilities or services of Ohanae Securities LLC are subject to regulatory approval, and there can be no assurance that such approvals will be obtained.

Ohanae Securities LLC intends to operate in a manner that addresses the unique characteristics of crypto asset securities, including maintaining robust policies and procedures for custody, safeguarding of private keys, and evaluation of distributed ledger technology. The firm’s approach is designed to support crypto asset securities that may not efficiently operate within the traditional National Market System (NMS). Subject to applicable regulatory approvals, Ohanae Securities LLC may expand its activities to include additional services that may be conducted in a dealer-principal capacity, with the objective of protecting investors and maintaining market integrity.