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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

Security Token Offering for Real Estate Asset

Since a securitized token is being offered to the prospective investors,
the process is referred to as a security token offering (STO) or a tokenized asset offering (TAO).

By buying a token, an investor gets a stake of ownership in the property. They will earn greater returns from future appreciation in the price of the asset. Asset owners have complete freedom in deciding how to market their STO in multiple ways. Transactions will also be streamlined and illiquidity discounts will be significantly reduced through tokenization.

An end-to-end asset-backed token for the Real Estate Industry. We help the industry in technology, legal, and auditing processes to raise capital via property-backed tokens. Our tokens are compliant with numerous jurisdictions with the regulations embedded in a smart contract.

At Blockchain App Factory, we provide services which include due diligence, auditing, and legal services to reduce illiquidity discounts by at least 25%, based on the technology that disrupted the decentralized industries.

Real Estate tokenization

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.

  • Quick peer to peer transactions
  • Efficient property management
  • Elimination of third parties
  • KYC/AML Compliance with authorities
  • OTC facility for token exchange
  • Integration with payment service providers (PSP’s)
  • An integrated voting system
  • Presence of digital stock certificates
  • Non-fungible tokens representing land ownership
  • Dividend payments to investors
  • Recovery mechanism for lost tokens
  • Investor forums for discussions
Real Estate Tokenization Platform

Benefits of Tokenizing Real estate

Both property owners and prospective investors will benefit immensely from Digitizing an Asset.

High-volume Liquidity

Tokenizing your real estate assets will bring in high-volume liquidity that will help you with efficient buying and selling of properties and also with a quick conversion of property values into cash.

Fractional Ownership

Tokenization allows fractional ownership where you can split the value of shares and also their ownership. This helps reduce your distress of being a sole owner and bear all challenges by yourself.

Globalization

Tokenization removes geographical barriers, and you can trade with anyone around the globe, which widely expands your business opportunities, spinning profits in huge numbers.

No intermediaries

By tokenizing real estate assets, users are enabled direct peer-peer transactions with no involvement from intermediaries. This helps with a risk-free business, and also reduces extra costs.

Blockchain Immutability

The integration of blockchain into the tokenization platform provides immutability where the transactions, once recorded, cannot be interchanged. Also, blockchain completely protects the user and their asset information.

Instant, Efficient transactions

Tokenization eliminates the long, tedious real estate process and helps with quick, efficient peer-peer transactions, from/to anywhere around the world.

Reduced entry cost

The tokens can easily be subdivided into many parts and this enables its sale at lower prices due to the presence of fractionalization. Hence, small investors can participate greatly in the process while the wealthier investors can efficiently diversify their portfolio.

Highly secure

No individual or organization controls the entire system, and the power is equally distributed between the different users. Advanced cryptographic techniques like private keys are utilized by users to get access to their digital assets.

Simplified management

Investors’ rights can be managed easily. Secondary transactions executed can be tracked on a real-time basis by partnering with the leading third-party exchanges. Investors get their returns promptly and also participate in the governance of the platform through voting rights and decision making.

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Factors to Consider While Digitizing an Asset

A host of issues need to be dealt with while offering a token in the market. They are classified into the following aspects mentioned below.

  • The type of interest which an investor gets by buying the tokens will have to be precise.
  • The various security laws need to be complied with properly which varies according to the geographical location.
  • A Corporate code needs to be set up regarding the formation of an entity.
  • Mortgage issues concerning different properties will have to be taken care of.
  • The guidelines will be different for domestic and international sales of tokens.
Digitize Real Estate Asset
How to Digitize Real Estate Asset

Starting Real Estate Tokenization, there are a lot of practical and legal issues that must be addressed

The law must be followed diligently in Tokenization. If not, it will lead to various operational obstacles affecting the token sale process.

  • Government regulations will have to be followed seriously especially regarding KYC/AML verification of the investors.
  • There is a complete lack of uniform regulations regarding cryptocurrencies and tokens in all the countries. Hence, investors will find it tough to prove their ownership legally.
  • The tokens should either be recognized as shares in the SPV or a right to get cash flows from the property.
  • Self-regulation is not possible in Real estate tokenization as it brings back some form of centralization. They have to align with a set of well-defined laws.

The Scope of Real Estate Tokenization Investment

The biggest asset we have for you is the legally compliant token structure which can be built on numerous blockchain. Our team of 200+ members are highly driven to help you raise funds within the legal framework.

  • Ethereum, Hyperledger or Stellar Token Structure
  • Blockchain & Smart Contract Development Experts
  • Understand the requirements of the Market
  • End to End Securitized Real Estate Token Solution
  • Experienced Team of Technology, Legal & Financial Advisors
The scope of Real Estate Investment Tokens

FAQ

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.
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.
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.
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.
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.
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.

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