Tokenization

What is Tokenization?

Tokenizing a property investment offers several key benefits:

Lower Investment Threshold: Investors can buy smaller portions of a property, making it more accessible to a broader range of investors who may not have the capital to buy a whole property.
Diversification: Investors can spread their capital across multiple properties, reducing risk compared to investing in a single property.
Increased Liquidity: Tokenization increases liquidity because the tokens are listed on a DeFi exchange (a type of exchange similar to the NASDAQ except it's only for tokens) where you can cash in your investment instantly.
Passive Income: Investors can earn a share of rental income or profits without managing the property themselves.
Access to Larger Investments: Tokenization allows smaller investors to participate in high-value real estate assets, like vacation properties, that they couldn’t afford individually.

This approach can make real estate investment more flexible, scalable, and inclusive for both investors and property owners.

How Does Tokenization Work?

Property tokenization is the process of converting real estate assets into digital tokens on a blockchain. Each token represents a fractional ownership, right, or claim on the underlying property, enabling easier and more efficient transactions, ownership, and investment.

Ownership of the property is structured in a way that can be divided into tokens. This often involves:

Direct Ownership: Tokens represent direct ownership rights in the property.

Token Creation

Digital tokens are created on a blockchain platform (in our case Polygon) using smart contracts. Each token can represent:

A fractional ownership (e.g., 1% of the property per token).
A share of rental income or profits from the sale of the property.

Offering the Tokens

The tokens are offered to investors via:

Private Sales: Targeting institutional investors or accredited investors.
Token Exchanges: Listing on platforms for broader trading access.

Token Holders' Rights

Token holders typically receive rights based on their ownership percentage:

Share in rental income or dividends.
Participation in property appreciation (capital gains)
Participation in token appreciation (capital gains)

What Kind of Return Can I Expect?

The benefits of our Portfolio Tokens:

Share of Dividends:
Investors earn a proportional share of dividends based on their ownership percentage. These dividends come from the net rental income, offering strong potential returns from rental operations.

Proceeds from Sale:
Upon sale of the property, expected within 1 to 5 years, investors will receive their portion of the sale proceeds based on their percentage ownership. This offers the potential for significant capital gains on top of the dividends.

Capital appreciation in the value of the tokens:

As more properties are added to the portfolio, the demand for new tokens increases, this along with the sharing of rental income and dividends, helps increase the price of the tokens.

Flexible Exit :
Tokenholders/Investors can exit at any time by simply selling their tokens on the exchange.

This structure offers a balance of income Generation, Dividends and Price Appreciation, making it attractive for both passive and active real estate investors alike.