What are the benefits of tokenized real estate?
RealT sells real estate property through the internet, allowing real estate to be purchased from nearly anywhere in the world. RealT properties are fractionalizable, so suitable investors can invest any amount that fits their needs. Additionally, RealT has reduced the time to purchase real estate from a minimum of 30 days and numerous steps with third parties, to just 30 minutes and on your phone or computer.
With tokenization, real estate investments can be made affordable to nearly anyone. A single token for RealT properties costs between $50 – $150 per token, which are the lowest investment minimums the real estate industry is able to offer. Traditional pen+paper competitors to RealT have $5,000-10,000 investment minimums.
Real estate is also a notoriously illiquid industry. By turning real estate into digital tokens, real estate can be accessed by far larger numbers of potential buyers, both due to fractionalization of the tokens and the potential reach of internet-based markets. The larger market participants that digital tokens are able to reach increases the liquidity of real estate. Additionally, financial applications on Ethereum (and xDai) offer solutions to accessing liquidity for valuable tokenized assets.
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