Giants that stand over us as we walk through the streets in our capital cities. Protruding out of the concrete jungle, skyscrapers are the hallmark of a thriving economy. The latest and greatest towers are symbolic of the civilizations that funded and built them. They mean so much to us and the image of our nations. We take pride in having the tallest, largest skyscrapers because they’re a symbol of national power. So, what if you’re walking down the street one day and you see a new skyscraper being built, don’t you wish you could be a part of that? Your first thought might be to beat yourself down and be negative; thinking that you could never grab a piece of this new hulk. But that’s where you’re wrong. Sure, you might have a point if you plan on investing in the building through traditional methods. Banks would laugh at you, asset owners would tell you not to come back if you tried to haggle a financial negotiation to buy a piece of the real estate with a small amount of funds. Thankfully, tokenization can make millionaires out of anyone.
Shutterstock Licensed Photo – By GaudiLab
Stability is profitable
Putting yourself in the shoes of the owner of this building, what route would you choose; either to look for wealthy investors or investors from the wider public? Traditionally it was prudent to find a wealthy investor who has the financial muscle to who you can lease the property to. With their business expertise, they could make the property thrive by taking on clients to rent the property. They might allow well-known businesses set up their headquarters in the commercial building to give it some gravitas. But in today’s day and age, just have one investor is like settling for a windup two-cylinder car rather than an electric hypercar. It’s just plain old-fashioned. When you have lots of investors instead of one or a few, your asset is a lot more stable. The market can value it higher because the risk is less.
It’s like a party
Every industry even one as archaic as real estate will go through a genuinely revolutionary change every few decades. It’s just a natural progression of technology catching up with human desires. Blockchaining and tokenization of properties are fast becoming the horse that won the race. An asset owner can go to a blockchain platform to fracture their real estate. Dividing the property up into smaller segments increases the chances and attractiveness for real estate investment. The asset owner signs a smart contract and takes their asset to multiple financial institutions. They offer pieces of the title to willing buyers who will make a real-world currency transaction for security tokens used as a value on the blockchain platform. Once they own the tokens they own the title. As with time, the value of the real estate will gradually rise. The tokens you own will be worth more than when you bought them and thus you stand to make a profit were you to sell them to another investor.
Still second place?
The question on your lips might be, what’s to stop a wealth investor snapping up all the tokens of a property in the first place? This is a valid question but as ever with real estate investing, it’s all about timing. Right now, you could buy cryptocoins of a real estate blockchain platform. It’s a conundrum because when a company first starts out the coins will be dirt cheap. Depending on the continued success of the company, the coins could spike and be worth a lot more than when you bought them. The platform will correlate their coins along with their tokens. So, if you don’t want to buy tokens at their market value as the property may be doing extremely well and therefore pricing you out, the platform’s coins can do the buying for you. Since the company is making such large profits from the asset owners their own market value will increase. Enthused cryptocurrency investors will buy their coins increases the value. Any future tokenization of a property can then be bought with the cryptocoins of the platform itself. With this strategy, you can level the playing field with the wealthy investor that will most likely buy tokens with cold hard cash anyway.
Walking by their glistening mirrored-windows and seeing them sparkle in the skyline is a sight you won’t ever forget. Skyscrapers are the height of engineering and supply businesses and corporation’s great workspaces. They’re also a symbol of the wealth and prosperity of the nation thus they’re always going to be hot in the real estate investment sector. Getting in early with real estate blockchain platforms is the key to being able to own a piece of these colossal structures.