Real Estate Tokenization Platform Changing the Real Estate Space
Using blockchain in real estate is set to usher in positive utility that will unlock the hidden potential. The sector is among the largest global class asset. By 2016, the global real estate was valued at $217 trillion with residential property accounting to 75 percent total value.
Times have changed and so are investor demands. The shift from manual to automated transactions has seen the adoption of real estate tokenization. Through Funder One Capital, the real estate space is significantly changing and the sector is opening up for more investors in a global marketplace.
5 Major Traditional Real Estate Problems Tokenization is Solving
- Traditional real estate is a preserve for the rich and ordinary investors are excluded from the passive income the sector provides. There are so many barriers investing in the industry. Some of these include and not limited to citizenship, funding, credit score and accreditation.
- However, Funder One Capital, which rides on blockchain, is fully decentralized and allows you to transact business online without physically visiting the property you are investing in. This cuts down the function of middlemen and lessening the time it takes to complete the transaction.
- Traditional real estate lacks transparency leading to corrupt deals, evading taxes and money laundering. Tokenizing the sector ensures these vices are eradicated since all processes are automated and records are stored in an immutable system.
- Investment in the international real estate comes with high fees. However, once real estate is put on blockchain through tokenization, the fees are drastically reduced. Funder One Capital takes care of taxation processes, attorney fee, investment fees and property transfer fee. All these are covered by smart contracts making transacts costs almost zero.
- Converting your property is to cash has been a huge problem but tokenization ensures you can liquidate your asset anytime. This makes sense since investing in real estate should not tie down your funds. Funder One Capital helps you list your digitalized asset on their native decentralized crypto exchange.
- Lastly, Real estate tokenization increases transaction speeds, a move from the traditional manual way to transacting. You do not need to wait for months to find the right property across borders. Digitalized properties listed on Funder One Capital are accessible 24/7 on a smartphone.
Role of Smart Contracts in Real Estate Tokenization
These are self-executing blockchain based contracts but only work once set parameters are met. Simply put; these are simple but coded instructions which work in sequence until the end of contract is reached between two or more transacting parties.
The system prompts you to move to the next step until the transaction is deemed complete. As a buyer you “sign” a contract with the seller and this eliminates the middleman. Bear in mind that the smart contracts ride on blockchain making real estate transaction records immutable and transparent
On top of smart contracts, Funder One Capital utilizes Artificial Intelligence in its quest to achieve the best real estate tokenization benefits. This is the first real estate tokenization platform to change the real estate space through turning the real estate into a token that is tradable on a global peer-to-peer marketplace.