Over the last few years, blockchain technology evolved a lot. Even though it is not that new, it seems that only lately have people started to see how beneficial it can be. Many businesses began integrating blockchain technology, which improved things for them.
Another process that has become quite popular among businesses is real estate tokenization. Experts keep talking about how it can positively influence a business and bring many financial and economic changes.
So, should you consider real estate tokenization? If you were ready to implement this tool and reach out to lawyers for real estate tokenization, you will be happy to read about its benefits in this article.
- It Increases Transparency
With real estate tokenization, data is programmed into a digital token that is very secure. Thanks to this aspect, there will be full transparency between the seller and the investor, which makes things better for both sides.
Not to mention that since the administrative work is reduced and there are fewer intermediaries, selling houses and buying them will be much cheaper.
- Liquidity Increase
Real estate has always been an illiquid asset or a low-liquidity investment. This is because there is a significant capital requirement, there is a lot of paperwork and multiple parties involved, and the number of private players is higher.
Luckily, real estate tokenization comes to save the day. Through it, assets will be fractionalized, and investors will have an easy entry, which makes the tokens more liquid.
- Easier to Manage Properties
One of the challenges that property owners and tenants face is delayed monthly rent payments, as well as lease renewal. But this can change with real estate tokenization.
With blockchain-based smart tokens or contracts, you will have the option to register documents into a special database. This way, you can syndicate loans, get rents from tenants on time, and even speed up the due diligence process. Overall, the process is fast and efficient for both parties.
- Ownership Proof
Rights and ownership have often been the reason why so many intense legal battles took place in the real estate industry. They may end up affecting the value of the brand, and may also take a lot of money, which is not something you want.
With tokenization, data will be stored in blockchain ledgers and will not allow others to tamper with it. So, when fractional ownership or ownership is declared, you can start evaluating transactions from the past or the present.
- Better Market Access
Not everyone can play the real estate investment game, mainly because only those with knowledge and possibilities can do it.
However, with tokenization, the investor pool will increase in such a way that anyone who has a good Internet connection, and enough capital can either buy, sell or hold real estate from any place. Selling a token as a whole unit is not necessary considering the tokens are fractionalized.
Conclusion
Real estate tokenization offers transparency, easier access to the market, and less expensive transactions, among others. You should give it a try for your business and see what benefits you can reap.
