Benefits of Real Estate Tokenization

I. Lower entrance threshold

Real estate tokenization facilitates small-scale investor engagement and decreases entry barriers for retail investors by permitting investing in fractional pieces of real estate. Thus, lower minimums and smaller investment amounts can be used to take advantage of the potentially large returns offered by conventional real estate investments, which normally demand a lot more money up front.

II. Ability to create liquidity

Blockchain technology makes it simple and safe to transfer real estate tokens, enabling investors to diversify their portfolios, lower risk, and increase liquidity in the real estate market. On the other hand, issuers are given access to a larger group of investors.

III. Lower transaction costs

Blockchain technology offers the ability to simplify investment transactions and reduce transaction costs through automated procedures and a permanent, unchangeable digital record. As a result, investment transactions are typically completed more quickly and inexpensively for all parties, enabling investors to earn larger returns. Numerous other advantages of tokenization include improved accessibility, increased transparency for potential investors, and real-time capitalization table tracking.

How is tokenized real property different from REITs?

REITs are effective for their intended use. This isn’t all that different. The creation of REITs opened up commercial real estate investing to a wider range of people. A portfolio of commercial real estate is beyond the means of the average person. Using REITs, real estate ownership might become more accessible. Similar to tokenization, but with residential, commercial, and other sorts of real estate included. Each property can eventually be divided into incredibly tiny portions, and tokenization allows anyone to possess a fraction of any real estate. This enables more democratic ownership and a much larger investment base.

What are the legal implications of tokenized real property?

We are creating Reitcircles as a platform to give “FREEDOM, FLEXIBILITY AND PEACE OF MIND FOR ALL REAL ESTATE OWNERS”. Imagine the following situation which is quite common in the developing world where more than 40% of the world population reside. You buy a house or land, and you have to leave for work to another country. You come back and see that someone has occupied your asset and you have no way to fight back. Because the person concerned has bribed his way into the system. In this case imagine if you had put all the documents and managed the process of asset verification via the blockchain and platform such as Reticircles, the entire story would be different. Because you have embedded all real world information on the blockchain, this becomes a very strong reference in court of law. The ownership of the NFT in combination with ownership documents opens up a floodgate of opportunities to prove property ownership in most of the cases. We do understand that in 5–10% of the edge cases powerful groups have the ability to manipulate, but over time this will reduce once digitization accelerates over time.


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