How will property owners benefit from Real Estate tokenization. Attract equity part of construction finance.
16 Aug 2023, 09:04
How will property owners benefit from Real Estate tokenization?🏨
1️⃣ Attract equity part of construction finance.
If banks only provide 50% to 70% of the project financing, the rest 50% to 30% can be supplied by tokenization and fractional ownership for the equity investors.
2️⃣ Attract capital for large projects.
Tokenization can finance projects worth millions or even billions of dollars, as capital markets are more profound than bank financing, attracting more funds for real estate development.
3️⃣ Sell property easier thanks to fractional ownership
Property management companies can tokenize properties, enabling quick unit sales and lower profit margins compared to traditional agencies.
This eliminates limitations on rental income and streamlines the process.
4️⃣ Tokenization increases property value through two mechanisms: increasing investor demand and bargaining power, which leads to higher prices for real estate tokens. Liquidity attracts investors and monetizes capital appreciation in traded properties.
This makes property managers and developers more profitable by selling tokenized units, resulting in higher profits.
Stobox has numerous clients who utilize tokenization to sell real estate at better prices.