What Are the Key Advantages Rendered by the Digitization of Real Estate Assets?

• It eliminates the role of the middlemen like banks, brokers, agents, underwriters, and lawyers from the system.

• The tokens can be instantly traded at low fees by the investors in the market.

• Tokenization of real estate ensures that the barriers to entry are greatly reduced and high returns can be fetched even with a small investment in a percentage of a tokenized asset. This promotes the tendency of fractional ownership. 

• Since they are financially supported by various real-world assets, they are less risky when compared to Cryptocurrencies or ICO projects.

• Controlling methods are present to prevent the value of the security token to fall below the Net Asset Value (NAV) of the Real estate asset. 

• A high level of transparency is ensured as the investors can know what is happening on a real-time basis by looking at the distributed digital ledger.

• It reduces economic discrimination as property investment is not reserved only for the accredited and institutional investors, but also for a large number of retail investors.

• Property owners can make efficient use of their capital by utilizing the limited financial resources available to the fullest extent.

• Property investors can put their money both in over-developed markets and upcoming markets.

• It will also divert funds flowing into other popular alternatives like private equity and venture capital. 

• Real Estate Tokenization will ensure that property owners manage their different rights and responsibilities easily.

• It can revamp different aspects like property search, property management, due diligence, financial evaluation, and deed management efficiently.

• If you are looking for tokenization then one of the well-founded real estate tokenization companies with an experienced and dedicated team of professionals is Blockchain App Factory. They offer all inclusive solutions for tokenization of real estate assets, with the top functionalities, technical and security integrations which will ensure a seamless experience for the investors.

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Created on Jan 12th 2021 06:36. Viewed 226 times.

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