Real Estate Tokenization

Investors can get access to fractional ownership and a frictionless form of investment via Real Estate Tokenization. We offer a user-friendly method where investors can experience advantages like regular cash flow, fewer maintenance costs, sufficient liquidity, better capital efficiency, and frequent rent payments. We aim to democratize real estate investment and improve its accessibility while ensuring affordability. Our various tokenization solutions include

Commercial Real Estate Tokenization

Residential Real Estate Tokenization

Single Real Estate Tokenization

Trophy Real Estate Tokenization

Talk To Our Experts

Real Estate Tokenization - Tokenize Real Estate Property

Real estate is one of the far-reaching, boundless industries. The concept of tokenization of real estate assets, alongside blockchain technology, is transforming real estate to another level. Blockchain-based tokenization is thriving among potential investors because it helps them with a more efficient business consisting of increased liquidity, globalization, and several other factors.

 

Real Estate Tokenization is the process of converting the value of a real estate property into digital tokens that you can sell to investors to raise funds. In simple terms, to ”tokenize” means to divide the physical asset into digital shares, or blockchain-based security tokens that represent an individual underlying asset or shares of different underlying assets.

 

We, at Santo Blockchain Labs, have an experienced team of developers who will offer tokenization services that include due diligence, auditing, and legal services to reduce illiquidity discounts by at least 25%. Our cutting-edge blockchain tokenization platform removes the hindrance of a long, tedious process and enables a hassle-free business at reduced costs.

Real Estate Tokenization Strategy

Tokenizing your real-estate assets to NFTs offers a unique value to your real estate assets. Non-Fungible tokens are in rife for its unique features and characteristics. Their uniqueness and scarcity provides a huge demand for your asset and also increases the value tremendously and can be used as collateral for immediate liquidity. This phenomenal feature of NFT unlocks the doors of Real-Estate by enabling it to digitize your lands and the infrastructures virtually. The virtual representation of your property through NFT may offer you millions.
We develop and deploy your virtual assets in the form of NFTs at ease . Our market visibility and innovation enables us to list your NFT property in a wide range of in demand marketplaces that can bid for huge price value.

Real Estate Tokenization Checklist

Process Involved in Tokenizing an Real Estate Asset

01

Finalizing The Deal

The factors that influence the final deal are the type of assets, jurisdiction, types of shareholders, and the relevant regulations to be followed.

02

Formation Of The Legal Structure

Various options are available for the property owner and he/ she can opt to form a Special Purpose Vehicle (SPV), become a member of a real estate fund, involve in project finance, or take part in a Real Estate Investment Trust (REIT).

03

Selection Of The Appropriate Technology

Various options are available for the property owner and he/ she can opt to form a Special Purpose Vehicle (SPV), become a member of a real estate fund, involve in project finance, or take part in a Real Estate Investment Trust (REIT).

04

Token Creation And Distribution

Once the token has been created, a distribution plan must be prepared according to the total supply available. Multiple payment methods need to be accepted when potential investors purchase the token. You can see the amount of funds that you have raised totally by viewing the cap table updated on a real-time basis.

Security Token Offering for Real Estate Asset

Since a securitized token is being offered to the prospective investors, the process is referred to as a security token offering (STO) or a tokenized asset offering (TAO).

By buying a token, an investor gets a stake of ownership in the property. They will earn greater returns from future appreciation in the price of the asset. Asset owners have complete freedom in deciding how to market their STO in multiple ways. Transactions will also be streamlined and illiquidity discounts will be significantly reduced through tokenization.

An end-to-end asset-backed token for the Real Estate Industry. We help the industry in technology, legal, and auditing processes to raise capital via property-backed tokens. Our tokens are compliant with numerous jurisdictions with the regulations embedded in a smart contract.

At Santo Blockchain Labs, we provide services which include due diligence, auditing, and legal services to reduce illiquidity discounts by at least 25%, based on the technology that disrupted the decentralized industries.

NFT for Real estate

Tokenizing your real-estate assets to NFTs offers a unique value to your real estate assets. Non-Fungible tokens are in rife for its unique features and characteristics. NFTs uniqueness and scarcity provides a huge demand for your asset and also increases its value tremendously. Also tokenizing your asset into NFT adds intrinsic value and can be used as collateral for immediate liquidity. This phenomenal feature of NFT unlocks the doors of Real-Estate by enabling to digitize your lands ,Infrastructures virtually for huge cost.The huge audience interest and the demand of NFTs offer great value for your real estate assets. The virtual representation of your property through NFT may offer you in millions.

We develop and deploy your virtual assets in the form of NFTs at ease . Our market visibility and innovation enables us to list your NFT property in a wide range of in demand marketplaces that can bid for huge price value .

Real Estate Tokenization Platform

The real estate tokenization platform is a customized all-inclusive property-backed token issuance platform in the real-estate industry. Issuers can tokenize their real-estate, commercial or residential and become a “Tokenization as a Service” provider, and the tokens can be either issued on Ethereum, Hyperledger, or Stellar.

Benefits of Digitizing Real Estate

Both property owners and prospective investors will benefit immensely from Digitizing an Asset.

High-volume Liquidity

Tokenizing your real estate assets will bring in high-volume liquidity that will help you with efficient buying and selling of properties and also with a quick conversion of property values into cash.

Fractional Ownership

Tokenization allows fractional ownership where you can split the value of shares and also their ownership. This helps reduce your distress of being a sole owner and bear all challenges by yourself.

Globalization

Tokenization removes geographical barriers, and you can trade with anyone around the globe, which widely expands your business opportunities, spinning profits in huge numbers.

No intermediaries

By tokenizing real estate assets, users are enabled direct peer-peer transactions with no involvement from intermediaries. This helps with a risk-free business, and also reduces extra costs.

Blockchain Immutability

The integration of blockchain into the tokenization platform provides immutability where the transactions, once recorded, cannot be interchanged. Also, blockchain completely protects the user and their asset information.

Instant, Efficient transactions

Tokenization eliminates the long, tedious real estate process and helps with quick, efficient peer-peer transactions, from/to anywhere around the world.

Reduced entry cost

The tokens can easily be subdivided into many parts and this enables its sale at lower prices due to the presence of fractionalization. Hence, small investors can participate greatly in the process while the wealthier investors can efficiently diversify their portfolio.

Highly secure

No individual or organization controls the entire system, and the power is equally distributed between the different users. Advanced cryptographic techniques like private keys are utilized by users to get access to their digital assets.

Simplified management

Investors’ rights can be managed easily. Secondary transactions executed can be tracked on a real-time basis by partnering with the leading third-party exchanges. Investors get their returns promptly and also participate in the governance of the platform through voting rights and decision making.

Factors to Consider While Digitizing an Asset

A host of issues need to be dealt with while offering a token in the market. They are classified into the following aspects mentioned below.

Practical and Legal Issues That Need to Be Tackled Before Starting Tokenization

The law must be followed diligently in Tokenization. If not, it will lead to various operational obstacles affecting the token sale process.

The scope of Real Estate Investment Tokens

The biggest asset we have for you is the legally compliant token structure which can be built on numerous blockchain. Our team of 200+ members are highly driven to help you raise funds within the legal framework.

FAQs

Real estate tokenization is a process of creating a digital asset in the form of a token on a blockchain-based system using distributed ledger technology. Whoever purchases that token, will have a fractional ownership interest in the property.

Assume that you own a 200,000 sq foot property that costs around $60 million. If you have decided to tokenize the property, each square foot can be easily divided into tradable shares. There will be 200,000 shares in total with each valued at around $3000. Hence, property ownership is fragmented through fractionalization and ensures that small investors can effortlessly enter the market without facing any restrictions. Multiple investors can own each square foot of the property simultaneously.

Blockchain technology helps in decentralizing the entire process of crowdfunding and tokenization. It eliminates intermediaries like brokers, banks, and lawyers from the system. It takes care of different aspects like the listing of properties, receiving the payments, and legal documentation. It ensures transparency while sharing data via an immutable distributed ledger. This prevents the chances of fraud. It makes property investing more secure and equitable.

The cost of tokenizing your real estate wholly depends on the features, integrations, and how you choose to customize your tokens. However, to save ample time and cost, the best option is to hire an existing real estate tokenization company and attain ready-made solutions from them.

Let's Connect

We are happy to answer any your question, please fill in the form below to address your message to us.