As someone who has been actively investing for over a decade, I've long been fascinated by real estate. The stability and appreciation potential really appealed to me. However, the high barriers to entry always kept it out of reach for smaller investors like myself.
That all changed a few years ago when I first discovered a platform called RealT.co. <-that's my referral code if you decide to sign up and buy some tokens. (NOT FINANCIAL ADVICE)
RealT was pioneering a new concept called real estate tokenization that completely transformed how property investing could work. By issuing digital tokens representing ownership of real world buildings and land, RealT was fractionalizing real estate into much more accessible shares.
Intrigued, I decided to give it a try by purchasing some of their tokens. I was amazed by how easy and quick the process was. For just a few hundred euros, I suddenly owned a stake in the US property market. The tokens were stored securely in my digital wallet (ethereum & gnosis) and I could view regular updates on performance and valuations.
Most exciting of all was the liquidity. Unlike traditional property investment that can take months to offload, my RealT tokens were tradable around the clock on their site as well as approved 3rd party exchanges. If I ever needed cash in a hurry, I knew I wouldn't be stuck with illiquid assets. I also ended up with roughly 10% yearly on-going returns just from rent paid on the properties. Oh, did I neglect to mention that the tokens earn rental yield? My bad!
In my opinion, real estate tokenization shows great promise as a new model for fractionalized property investment. Through platforms like RealT, I've found the liquidity and accessibility of digital tokens opens up real estate to many smaller investors like myself who previously may not have been able to participate.
Now I'm also a crypto Degen and the ability to use my RealT tokens in DeFi was a major selling point for me. You want to be able to borrow against your existing real-estate assets to leverage up and buy more real-estate? Why not collateralise your tokens in an AAVE V2 based lending/borrowing marketplace?
Now you're playing the same games that the wealthy real-estate tycoons play. Crypto will eat everything.
RealT has also been strategic about forming partnerships to strengthen their ecosystem. None are more significant than the recent consortium created with two other European heavyweights - WiSEED and Twenty First Capital.
The consortium seems a smart strategic move, bringing together leaders with deep domain knowledge in real estate, financing and technology. By combining their expertise, I think they have the potential to advance adoption of tokenization in Europe by developing compliant offerings and helping shape supportive regulations.
Of course, the sector is still in its early stages. But if innovative companies continue working in collaboration to address challenges, there may be significant opportunities over the long run for both investors and the real estate industry as a whole to embrace this new tokenized model of ownership. Only time will tell how widely it may be adopted, but based on my own positive experience, I believe real estate tokenization represents an exciting new frontier for property investment.
If you've read this far, I thank you. Here's some delicious cookies as a reward.
