Understanding Tokenization of Real estate

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REAL ESTATE
TOKENIZATION

• Tokenize your Property

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Tokenizing Real estate can change the Industry
Blockchain technology has several use cases and
its integration into various industries changed
the way they operate. These industries benefited
from integrating this technology into their
operations. Experts predict that blockchain-based
solutions can significantly impact various areas
in the economy. One such area that can benefit
from blockchain technology is real estate. The
real estate industry is one of the safest
investment types and ensures the best returns to
investors. Ask anyone the best type of investment
in the market and nine times out of ten the
answer is real estate. Many people believe that
purchasing an apartment or commercial premises
are a guaranteed way to generate a revenue flow.
However, the only way to enter this industry is
with significant capital. That requirement leaves
out a majority of the population and enables only
the rich and elite participation. However,
blockchain and Real estate tokenization can
change all of that and benefit the masses.
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Understanding Tokenization of Real estate
Tokenize real estate is an emerging phenomenon
worldwide that aims to increase the number of
available investment options. The real estate
tokenization process creates tokens on a
blockchain network and assigns these tokens to
real estate. These properties can exist or are
under construction. The tokens here represent an
interest in real estate and can work to raise
capital. This process allows additional investors
and developers to participate in the industry and
enjoy the many benefits this industry
provides. One way of looking at the concept is
that tokenization provides a way for an
organization to raise capital using crowdsale.
The process is similar to crowdfunding but the
tokens are available on the blockchain.
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• This process makes it easy for the
  company to reach the goal. The purpose of tokens
  here acts like stocks without relying on any
  expensive intermediaries. It is possible that
  Successful Real estate tokenization can replace
  stock exchanges. The stock exchange market
  presents a viable way for people to profit and
  earn revenue. However, it remains locked away to
  the general audience thanks to the investment
  barrier, complexity and third-party involvement.
• Token users here can use the token either
  as a loan or as a share of a development company
  or as ownership of a specific property.

TOKENIZE
REAL ESTATE
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The Existing Types of Real Estate Tokens
Presently, there are two types of real estate
assets.       The first type is where a user
becomes the joint owner of a piece of real
estate       The second token is a debt asset
that digitizes the rent and automates the process
of exchanging and collecting rental receipts.
Automation here takes place through the use of
smart contracts
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Working Model of Real Estate Tokenization
Imagine a property owner looking into
tokenization of real estate. They own a property
and lease it to a retail chain. The first step
to Tokenize real estate requires the company
obtaining the necessary permits. That includes
documents like ownership rights, building
inspections and financial requirements. Following
this step, the security tokens are released.
These tokens correspond to ownership of a part of
the property. For example, one security token
represents one square meter of real estate.
Investors who purchase these security tokens
become the owner of a portion of the
premises. Over time, the owners earn a share of
future rental profits coming from the
property. Additionally, the tokens act as a
currency and as a loyalty program.
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Reasons why you should Tokenize your Real Estate
Flexibility Anyone can invest in the property,
become a partial owner and benefit from the
profits in the future. Additionally, the users
can buy and sell these tokens on secondary
markets at higher rates. The property owners can
sell a portion of their assets through tokens.
Tokenization provides several benefits over crowd
funding as it gives users immediate digital
ownership and allows them to sell their tokens
when needed. No physical limits The next
benefit to tokenize real estate is that there are
no barriers related to location. Nothing can stop
a user from buying property on the other side of
the world. Investors can participate in these
sales and benefit from building things like
rentals, housing estates, resorts, etc.
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Reasons why you should Tokenize your Real Estate
Higher diversification and low entry
requirements Presently, investing in real estate
requires large sums of money. Tokenization can
change that as users here are not required to buy
the entire property. It is possible to divide the
asset into several smaller tokens and sell them
on the marketplace. Now, the user can purchase a
single token. The Real estate tokenization
process enables anyone to participate in a
smaller shareholding structure and reap the
rewards. Now, there is no need for large sums of
money and that drastically lowers the entry
barrier. This change opens the doors to the
industry and brings in more investors. Additional
ly, users can now invest in several properties
rather than a single one. They can diversify
their investment portfolio through tokenization
of real estate.
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Reasons why you should Tokenize your Real Estate
No third-party involvement STOs liquidate the
secondary real estate market and remove the
reliance of intermediaries. Users dont have to
go through notaries or real estate agents and
face their heavy prices. Blockchain here
eliminates the need for third-party involvement
like lawyers, lowers the deposit fees and works
throughout the day. Also, there is no limit to
the number of tokens a user can buy and trade,
which benefits them. Top-notch security Real
estate tokenization brings security to
transactions and makes them transparent. The
process utilizes the highest security standards
based on the two major traits of tokens and
blockchain technology. The addition of
cryptographic algorithms makes the transmitted
data accessible to users on the network and
inaccessible to anyone outside. This facility
only happens because of the networks
decentralized nature.
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CONCLUSION
Many investors see tokenization as the future of
investing. The process makes it easy to purchase
and opens the door to a broader audience.
However, there are still several issues that real
estate tokenization must tackle before it becomes
a mainstream success. The benefits it provides
are one reason why many people are looking at
Tokenized real estate solutions. Hence, now is
the time to capitalize on this trend by
partnering with a real estate tokenization
company. 
TOKENIZE
REAL ESTATE