How does Real Estate Tokenization work?

Real estate tokenization is a process of creating a digital asset in the form of a token on a blockchain-based system using distributed ledger technology. Whoever purchases that token, will have a fractional ownership interest in the property.

How does Tokenization work?

Assume that you own a 200,000 sq foot property that costs around $60 million. If you have decided to tokenize the property, each square foot can be easily divided into tradable shares. There will be 200,000 shares in total with each valued at around $3000. Hence, property ownership is fragmented through fractionalization and ensures that small investors can effortlessly enter the market without facing any restrictions. Multiple investors can own each square foot of the property simultaneously.

How Blockchain is used in Real estate?

Blockchain technology helps in decentralizing the entire process of crowdfunding and tokenization. It eliminates intermediaries like brokers, banks, and lawyers from the system. It takes care of different aspects like the listing of properties, receiving the payments, and legal documentation. It ensures transparency while sharing data via an immutable distributed ledger. This prevents the chances of fraud. It makes property investing more secure and equitable.

What is the Cost for Tokenizing Real Estate?

The cost of tokenizing your real estate wholly depends on the features, integrations, and how you choose to customize your tokens. However, to save ample time and cost, the best option is to hire an existing real estate tokenization company and attain ready-made solutions from them.

How to Tokenize Your Real Estate?

Real estate is one of the most wise investments and tokenizing the real estate asset is an excellent decision. To tokenize your real estate asset you need to integrate the blockchain in the tokenization process.

What is Tokenized Real Estate Asset?

A real estate asset which is tokenized into a token with the blockchain support is called Tokenized Real Estate Asset. This tokenization process involves making the asset tamper-proof and the ownership authenticity will be stored securely. Presently, Tokenized Real estate assets are the best form of investment.

Real Estate Tokenization

Investors can get access to fractional ownership and a frictionless form of investment via Real Estate Tokenization. We offer a user-friendly method where investors can experience advantages like regular cash flow, fewer maintenance costs, sufficient liquidity, better capital efficiency, and frequent rent payments. We aim to democratize real estate investment and improve its accessibility while ensuring affordability. Our various tokenization solutions include

Real Estate Tokenization

Real estate tokenization has been a unique concept that rewarded exceptional opportunities for the real estate industry. Representing your assets in the decentralized network will reap you exceptional returns due to the networks’ global community and investor traction. These tokens are backed by real estate assets with customized smart contracts, which apply the same for equity. Also, the real estate tokenization allowed the business developers to raise funds by offering tokens as security.

And More
NFT Real Estate

The advent of the non-fungible token with its phenomenal abilities supports many industries to unleash their potential in multiple ways. The transparency, security, and immutability of NFTs shower its influence even in the real estate sector by introducing the futuristic technology by equipping the modern admirable virtual reality and augmented reality and onboard the users to the virtual world to own their real estate property in the new dimension of existence called “Metaverse” sounds Crazy right?

Let's Dive Deeper

Real Estate Tokenization - Tokenize Your Real Estate property

Real estate is one of the far-reaching, boundless industries, the concept of tokenization of real estate assets, alongside blockchain technology, is transforming real estate to another level. Blockchain-based tokenization is thriving among potential investors because it helps them with a more efficient business consisting of increased liquidity, globalization, and several other factors.

Real Estate Tokenization is the process of converting the value of a real estate property into digital tokens that you can sell to investors to raise funds. In simple terms, to ”tokenize” means is to divide the physical asset into digital shares, or blockchain-based security tokens that represent an individual underlying asset or shares of different underlying assets.

We, at Blockchain App Factory, have an experienced team of developers who will offer tokenization services that include due diligence, auditing, and legal services to reduce illiquidity discounts by at least 25%. Our cutting-edge blockchain tokenization platform removes the hindrance of a long, tedious process and enables a hassle-free business at reduced costs.

Real Estate Tokenization Strategy

Tokenization will change the way people invest in properties globally. The potential for strategizing by blockchain developers, legal and financial advisors is enormous. At Blockchain App Factory, we simplify the legal and practical issues with a team of Legal, Financial and Blockchain Consultants who ensure the tokens are legally compliant.

Our developers consistently consult with our subject matter experts on crowdfunding/securities, tax/accounting and real estate during the tokenization of the assets. SMEs guide our team in the development allowing you to raise funds within the regulatory framework.

Real Estate Tokenization Checklist

Decentralization

Smart Contracts

Type of Interest

Legal Entity

Securities Regulations

Corporate Code

Asset Type

Location of the Asset

Ratio of Tokenization

Mortgages on the Asset

Investor Traceability

Automated KYC/AML

Accredited Investor Verification

International Fundraising

Legal & Regulatory Frameworks

Numerous Jurisdictions

Real Estate Tokenization Platform

A customized all-inclusive property-backed token issuance platform in the real-estate industry. Through the platform, issuers can tokenize their real-estate, commercial or residential. As an issuance company, become a “Tokenization as a Service” provider, and the tokens can be either issued on Ethereum, Hyperledger, or Stellar.