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his story is part of The Speculators of Detroit, which examines how bad actors have destabilized neighborhoods, left residents without safe housing, and cost the city hundreds of millions.

    A Florida-based real estate startup, RealT, sold a portfolio of 39 homes on Detroit's eastside to foreign investors for as little as $50 each in July 2023. The deal was a success, with over $2.72 million raised from investors, but it never closed. Despite this, the company claims its tokenholders are legal owners of properties.

    RealT operates by buying properties, subdividing them into digital tokens, and selling them to investors who pay in cryptocurrency. However, the company has been accused of being opaque about its business practices and withholding critical information from investors. It's unclear whether RealT owns many of the properties it claims to own, as deeds for hundreds of homes are still listed under previous owners.

    The City of Detroit is taking action against RealT, filing a lawsuit that seeks to compel the company to bring its entire portfolio up to code. The suit alleges that RealT has created a public nuisance by allowing properties to fall into disrepair and attracting squatters and criminal activity.

    RealT's business model has raised concerns among industry experts, who say it introduces complexity, opacity, and lack of accountability. The company continues to tokenize new properties despite the controversy surrounding its operations.

    In Detroit, RealT is responsible for about 1,600 rental units, but previous investigations have revealed that the company owes millions in unpaid taxes and blight tickets. Tenants have been clamoring for essential repairs, and some have spent their own money on fixes.

    RealT's investors are caught in the middle of this ownership limbo, with some expressing concerns about the value of their tokens. A longtime investor contacted Outlier Media, saying they were withdrawing all investments from RealT due to concerns that it may be a Ponzi scheme.

    The company has been accused of inflating property values and withholding purchase agreements from investors. It's also unclear how RealT can claim ownership of properties when deeds are still listed under previous owners.

    Real estate experts have raised questions about the legitimacy of RealT's business model, with some calling it a "scam dressed up as tech innovation." The City of Detroit is taking action to address these concerns and ensure that properties are brought up to code.