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It is no secret that commercial real estate investing is commonly seen as one of the more stable paths to generating long-term wealth. The only (and very big) caveat being the large amount of upfront money needed to initially invest — a ticket cost so high that it eliminates many would-be investors right out of the gate. If this is a hurdle you’re facing — and as an investor you don’t have a large cash reserve on hand you can pull from to expand your investing portfolio to include commercial real estate — have no fear. Tokenization is here. And the days of CRE investing being exclusive to those with an extra $50,000 to $100,000 laying around are over.
What is Tokenization?
Tokenization takes an asset and converts its value into a digital token that is stored on the blockchain. This token can then be used to digitally transfer the partial ownership of an asset without the use of a third party or intermediary.
“Democratizing a CRE property breaks large and expensive investments into fractions, and creates security tokens for all the pieces,” says Gunner Davis, a top rated real estate broker from Tampa FL. “It allows more secure and liquid secondary trading of tokens, which fall below the minimum spending threshold for a higher number of investors.”
What are the Advantages to Tokenizing Real Estate?
The main benefit of tokenizing is the ability to fractionalize ownership of an illiquid asset such as real estate, says Mohsin Masud, founder and CEO of blockchain-based commercial real …
Full story available on Benzinga.com