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RE: Access To Real Estate Through Tokenization

in LeoFinance3 years ago

Yes, for real estate in particular there is so much opportunity. I have brokers asking me about this regularly as they see things in the news about properties being bought with crypto and more so as NFTs with that new company Proply.

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I researched this for a post once, and found companies which specialize in this niche. Perhaps it will become a real estate investor niche. It would be a way of solving one of the dilemmas you have recently write about, and spoke about during the round table; that of no track record for defi and no way to know if the income you are earning this month will be the same next month. When we rent a property we know if it’s positive cash flow, it will always be positive and nuisance raises will grow this positive cash flow. But with defi you don’t know. An investor that made their money on the Tokenization of real estate would have a share of the appreciation and no mortgage, but only cash flow when they close deals. It would become more like real estate Hodling.
But I suspect it could be structured to give the payout in stables over time.

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It is really going to be interesting how the establishment embraces it. How lot does it take for tokenization to replace titles? Eliminate closings? An accepted form of funding?

There is a lot of regulation with real estate which is going to be an uphill climb. Other than paying with BTC over USD, I dont see it changing anytime soon. It will be a process.

Of course, the SEC is always lurking with the "selling a security" idea, so there is that.

It will change completely, just a question of how soon.

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