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The Future Of Real Estate Is Instant Liquidity

Investing in local businesses has always been a great option for junior investors that may not have a lot of capital to work with. Buying stocks and studying the markets to find the next best thing has also been available to anyone if they have the capital to do so.

Not a lot is needed which is why although the investments may be into a market that is volatile, the reward and ease of getting into a position to make money is too attractive for small investors to miss. Despite the real estate market always being a historically less turbulent industry to invest in, getting your foot through the door has always been difficult. For one the returns are almost guaranteed and the yield is expected to be regular as clockwork. And yet not just any Tom, Dick or Harry can access a real estate property to invest in. you had had to be reasonably wealthy to even be considered. Part of this reason is that the real estate market yearns for stability. If you’re going to invest in it, you need large sums of money and be in it for the long term. Traditionally real estate investing was slow-paced. Paperwork and lawyers were half the battle. However something is changing, the future is coming and it’s in the form of blockchaining.

Why Would You Get Involved?

Before getting comfortable with the concept of blockchaining, ask yourself why you would get involved in the real estate market? You require extraordinary patience and the ability to leave you money in the hands of somebody else for a long period of time without any tangible returns. Consider the difference when you invest in a business. You watch a presentation at a business conference of an entrepreneur summit and spot a great idea. You meet with the business owners and they give you their business plan. After much discussion, you make and sign an agreement for the amount you will invest and the schedule for seeing returns. All very straightforward and a linear step by step basis. With real estate investing, you can compare it to your money sleeping. You invest in a property and you literally wait for it to increase in price. You can’t see any returns for a while for two main reasons. The owner of the property or investment bank that allowed you to invest in their portfolio needs your money as weight and authority along with the other investors to maintain the property price. Think of it as investors being the bricks and mortar of the property; pulling out would mean the project is damaged. The other reason is that it takes years and years for property prices to rise enough whereby you stand to make a great profit were to choose to cash in. so ask yourself are you prepared to get involved in a market that yields return slowly but with big profits and do you have the wealth to qualify in the first position?

The Rise of Tokenization

In an attempt to try and fast-track the real estate world and of course with the advent of cryptocurrencies, properties are being tokenized. The most detrimental factor to the slowing of real estate transactions is the middleman. Financial institutions that must oversee the sale and buying of a piece of property to make it official drag the process into the mud. Instead, the owner of a property can tokenize pieces of it. This means that chunks of a property become a security token. The owner first goes to a real estate blockchain platform and signs a smart contract as well as register their property with the company. The company will expertly evaluate the true value of the property. The owner can then split up their property into however many times they would like and each piece of assigned a token. The token can then be bought and sold by cryptocurrency that is usually made by the blockchain platform itself. Look at something like a I-house Token – IHT, and the process becomes a little bit clearer. Rather than financial institutions making a sale of a property official, the two parties operate on the platform. The blockchain keeps everybody protected as the transaction is publicly acknowledged. All the members around the world that are part of the blockchain will keep a record of the buying and selling of properties and thus it becomes self-regulated.

Instant Liquidity

Unlike traditional real estate contracts, a smart contract and security tokenization system has revolutionized how one could access their stored wealth. One the biggest reasons you needed to be wealthy to invest in the real estate market in the first was because once in, it’s very difficult to get out when you want. Therefore putting money into a security that you cannot easily access meant that the investment wouldn’t be something you could rely on in the near future to help you financially. However, with tokens you can sell and buy at will. This means that owning a piece of property doesn’t mean you have to wait until a yield percentage is achieved. If you buy a token at $50,000 and within a month the property that token represents has a 25% increase in value and you would like to withdraw your earnings now, you can sell that token and get back your $50,000 plus the $25,000 profit. It all depends on what you want to do. Since there’s no middleman, you’re doing trades with people that have to work within the realm of the blockchain platform. They also have to go through the method you did by buying registering and then buy the token from you. However, the token will not be worth the same since when you bought it as the security token value is dependent on the returns the property is yielding. Everything is sped up and so much more fluid than the traditional way of buying and selling real estate. This obviously makes it much more profitable as investment is quick and easy.

Some say that everything eventually will become tokenized, and it’s just a matter of time before it becomes mainstream. Everyone should be shocked at the capabilities of a tokenized economy. It’s already making a slow and lumbering market like real estate quick and easy to invest in. Get in when you want to and leave whenever you feel like it.

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