Real estate has long been considered one of the safest and most lucrative investment avenues. It’s no wonder, after all, that 90% of US millionaires became so through real estate. However, the traditional systems that underpin this industry are often inefficient, opaque, and costly. These challenges hinder scalability, reduce investor returns, and create unnecessary complexity in ownership and management. In short - real estate is a highly antiquated industry that lags the technological age we live in. The lag presented mogul with a tremendous opportunity to innovate and change real estate forever.
At mogul, we have integrated blockchain technology into our operations in a way that has never been done before in real estate. Through Avalanche, a decentralized, open-source Layer-1 blockchain, we’ve built a system that simplifies property ownership, significantly reduces costs, and ensures unparalleled transparency and security for our investors.
This case study explores how mogul modernizes real estate investing with blockchain and focuses on. on the application of blockchain on back-office operations, proof of ownership, and investor protection.
Real estate transactions and ownership management have historically relied on centralized systems that, while functional, are fraught with inefficiencies and vulnerabilities. Unfortunately, like much of the industry, these inefficiencies have just been accepted by many as status quo instead of challenged for more efficient and lucrative alternatives. Here’s a closer look at some of the challenges:
In real estate, properties are often held within Limited Liability Companies (LLCs) for liability protection and tax benefits. However, managing ownership within an LLC is complicated, especially when multiple investors are involved.
Managing ownership records and ensuring compliance with regulations require significant administrative effort, often outsourced to institutional custodians.
Proof of ownership in traditional models is often difficult to verify independently. Investors are reliant on the operator’s records, which:
These inefficiencies and vulnerabilities have real consequences for investors. Higher costs reduce returns, ownership is harder to verify, and trust relies on centralized systems that are far from failproof. mogul identified these challenges early and set out to create a blockchain-powered solution that would fundamentally change the game. We are proud to say we have succeeded, and in doing so have not only created a first-of-its-kind blockchain back-office, but also been able to provide investors with market leading returns and unparalleled transparency throughout.
Blockchain technology, with its ability to provide an immutable ledger, is ideally suited to address the challenges of traditional real estate systems. By integrating Avalanche, mogul has created a platform that is efficient, transparent, and secure. Here’s how it works:
At mogul, every property is tokenized, and ownership is recorded on the Avalanche blockchain.
This immutable ledger serves as a single source of truth for ownership, eliminating the need for manual reconciliations or third-party custodians. It is proof of how much more efficient real estate can truly be, and we are proud to be at the forefront of this.
By replacing traditional systems with blockchain, mogul has significantly reduced operational expenses:
The savings from these efficiencies are passed directly to investors, allowing mogul to maximize returns without taking a cut from investor profits. In addition to that, it allows us to truly make real estate accessible to everyone, as it acts as a key mechanism for us being able to allow people to invest at lower increments than other platforms. This is yet another key component as to why we are able to provide the returns we do, and one of many ways we ensure investors are receiving the best possible returns from properties vetted more stringently than even Harvard’s admissions process.
mogul uses Fireblocks, a secure digital wallet infrastructure, to create wallets for every investor. These wallets store the tokens that represent an investor’s ownership in mogul properties (more specifically: each token represents ownership in the property company LLC or “PropCo LLC” that owns the property. In effect, the token holder directly owns the property without the liabilities)).
Ownership in mogul properties is backed by two layers of proof, ensuring unparalleled security for investors:
Every investor’s ownership is recorded on the Avalanche blockchain, which is decentralized and immutable. This means:
Each property on mogul’s platform is associated with an operating agreement for the LLC that owns the property. These agreements are:
This dual system provides unmatched security and transparency. Even in a worst-case scenario where mogul ceases operations, investors retain full ownership of their assets, protected by both the blockchain and the operating agreement. Sadly, the same cannot be said about other competitors in the space, where investors are unfortunately reliant on that company’s operation and financial-wellbeing for their own investments.
Traditional (Web 2) Systems - Manual, reliant on operator records
mogul’s Blockchain Solution - Real-time, independently verifiable on blockchain
Traditional (Web 2) Systems - High monthly or annual custodianship costs
mogul’s Blockchain Solution - Significantly reduced, savings passed to investors
Traditional (Web 2) Systems - Centralized, prone to manipulation
mogul’s Blockchain Solution - Decentralized, tamper-proof, and immutable
Traditional (Web 2) Systems - Limited, operator-controlled
mogul’s Blockchain Solution - Fully transparent and accessible via Snowtrace
Traditional (Web 2) Systems - Dependent on operator
mogul’s Blockchain Solution - Ownership tied to blockchain and government-registered agreements
mogul’s blockchain integration offers tangible benefits for investors:
By eliminating custodianship fees and other operational costs, mogul ensures that investors keep more of their returns. This goes hand-in-hand with our ability to provide operational efficiencies through our key partnerships, secure properties off or pre market, and ensure investors capitalize on key markets that feature carefully curated mogul properties.
Investors’ ownership is fully protected by both blockchain and legal agreements. This dual protection ensures peace of mind, even in unlikely scenarios where mogul faces operational challenges. Investors can sit back and know that no matter what happens with mogul, their investment and proof of ownership will never be tied to anything that could happen to us.
The ability to verify ownership independently on Avalanche removes any ambiguity or reliance on centralized systems. Nobody can alter this, and the blockchain offers unparalleled transparency.
mogul’s blockchain infrastructure is designed to scale, enabling seamless onboarding of new properties and investors as the platform grows. We have managed to not only provide much needed transparency in the space, but also create a highly-efficient back-office that in turn provides investors with added security, streamlined efficiency and more profitable returns.
Blockchain integration allows for fractional ownership, making it easier for investors to participate in real estate markets with increments as small as $250. By democratizing access to high-quality properties, we break down the traditional financial barriers to real estate investing, enabling a broader range of investors to get involved and grow their wealth without needing substantial capital upfront.
mogul’s use of blockchain has transformed our back-office operations and created a secure, efficient, and transparent ownership model. Key outcomes include:
mogul’s integration of Avalanche is more than just a technological upgrade—it’s a complete reimagining of how real estate investing should work. It brings a key pillar of ours, innovation, to the forefront and enables us to continue pushing the boundaries of just how much is possible in a traditionally stagnant industry when it comes to new ideas and methods. By leveraging blockchain, mogul has eliminated inefficiencies, enhanced transparency, and delivered unparalleled security to our investors.
As the real estate industry evolves, mogul is leading the way, proving that blockchain is not just the future; it’s the present. Investors can now enjoy higher returns, greater peace of mind, and a platform that puts their interests first.
With mogul, real estate investing is no longer a complex, opaque process; it's simple, secure, and built for success. It’s headache free and it’s a perfect representation of what the world’s largest wealth builder should be: accessible to everyone, no matter their knowledge, their starting capital, or their background.
Interested in investing in properties like The Bowser? Get started today for as little as $250 with mogul Club.