Synthetic to Real

OpenHouse's "Synthetic to Real" framework outlines a seven-stage process for converting digital property investments into tangible real estate assets.

---

What Synthetic Means

During the synthetic phase, the property hasn't been acquired yet. Your shares are backed by OpenHouse's treasury, and any yield comes from treasury funds—not rental income.

Synthetic shares are contractual rights. They entitle you to receive property-backed shares if and when the acquisition succeeds. They do not represent ownership in any property, company, or SPV. They are not securities.

You can buy and sell throughout this phase.

The Funding Period

Each property has a funding target. Once that target is reached, synthetic yield stops and OpenHouse has 90 days to complete the acquisition.

During this window, you can still buy and sell. There is no lock period.

What Happens at Acquisition

If the acquisition succeeds, the property is purchased by an SPV. Your shares remain the same—there's no swap, burn, or migration. The underlying backing simply changes from treasury to real property.

Yield now comes from actual rental income, minus the 8% property management fee.

What Happens if Acquisition Fails

If OpenHouse cannot complete the acquisition within 90 days, the funding pool rolls over to the next qualifying property. Your shares carry forward with no value loss. You may also have the option to withdraw, depending on the terms.

Summary

Phase	Backing	Yield Source	What You Hold
Synthetic	Treasury	Treasury funds	Contractual rights
Real Asset	Property (via SPV)	Rental income	Economic rights in SPV

The same shares carry through both phases. The app clearly labels which phase each property is in.