Rethinking real estate ownership.
Permissionless, compliant, and first-of-its-kind. Powered by the blockchain.
Fractional investments democratize access to real estate ownership and distribute and minimize the risks and labor involved in owning property.
We can help you create a marketplace that provides investors around the globe with a simple, intelligent, fully compliant, and user-friendly method to buy and sell fractional, tokenized shares of real estate properties and diversify their portfolios by investing in multiple properties with relatively small amounts of capital. Tokenized shares also reduce the barriers to entry and the transaction costs associated with traditional real estate investing.
How can real estate be tokenized?
Tokenization of real estate ownership means converting real estate assets into digital tokens on a blockchain network. Tokenized real estate allows for fractional ownership, increased liquidity, and lower transaction costs.
There are several platforms that offer tokenized real estate investments:
- RealT is a blockchain-based platform that offers fractional ownership of properties located in Detroit, Michigan.
- Harbor is a digital platform that offers a range of tokenized real estate investment opportunities, including commercial and residential properties.
- Propellr is a blockchain-based platform that offers fractional ownership in a range of real estate investments, including residential, commercial, and industrial properties.
- Brickblock is a blockchain-based platform that offers tokenized real estate investments in a range of countries including the United States, Germany, and the United Kingdom.
- Blockimmo is a blockchain-based platform that offers tokenized real estate investments in Switzerland.
Overall, investing with such a platform means low-maintenance property ownership, access to property-related cash flows (such as rent), and frictionless token exchanges in the marketplace. This is beneficial for investors, as purchasing a property usually requires a lot of money.
Key features that could be included in a blockchain-based real estate marketplace
- Frictionless transactions: blockchain technology can enable quick and secure transactions while reducing the need for intermediaries such as banks, brokers, and lawyers.
- Access to data: investors can access data and analytics about real estate properties, including market trends, property performance, and investment opportunities.
- Risk management tools: risk management tools for portfolio diversification, due diligence, and insurance can help investors manage their real estate investments.
- Community features: forums, blogs, and social media integrations can foster engagement and provide a platform for investors to connect and share information.
How does it work?
With a real estate investing marketplace, property owners can convert a property into shares (tokens) — that is, tokenize the property. Users of such a marketplace can purchase cryptocurrency tokens that are equivalent, for example, to one square meter of a given property. Legally, the property does not belong to token holders, but the tokens do. In exchange for holding these tokens, investors receive monthly rental income. At any time, token holders can exchange their tokens for money, as the platform itself buys back tokens.
Shares in houses, apartments, or commercial real estate can be converted into tokens designating a token holder’s share of ownership in a given real estate object. This is beneficial for both property owners and investors, who don’t need to pay the full amount for a real estate object in order to profit from its rental.
Overall, a marketplace for fractional and frictionless real estate investing has the potential to democratize real estate investing by making it more accessible, affordable, and transparent for a wider range of investors.
At S-PRO, we offer a full range of services for developing a real estate investment marketplace, from idea to implementation. If you are interested in building such a project, contact us today and we will discuss your platform’s details.
