RealToken LLC has created a system for tokenizing real property in the United States that allows a token holder to purchase and retain all legal rights and protections provided by traditional real estate ownership. Through this system, individual investors are able to invest in real estate, such as houses and apartment complexes, with a smaller initial investment.

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blockchain technology as it enables a real estate token to act as a digital security, and greatly lowers the financial barriers to accessing real estate by lowering the price of admission. 

Real Estate Tokenization

- Assets such as real estate have a high barrier to entry due to large upfront capital required
- Frationalizing such assets democratizes its access for smaller investors

Fractionalization Ownership 

● Fractionalization increases the pool of potential investors and can unlock global investor base 
● Secondary markets also facilitate additional liquidity 
● Liquid assets command a premium and can increase asset value

Liquidity

- Regulatory Restrictions and license: limited of who can buy, different law on each citizenship.
- Volume and liquidity: low liquidity and a high illiquidity premium for shares in single buildings due to the small market size.
- Listing on Exchanges: list on the international exchange can be hard, take time, and high listing fee costs
- Marketing and Demand: Marketing is one of the most important for STO. Reach target, lack of demand


Challenge

As an example of real estate tokenization, a property worth \$100,000 can be divided into 100 tokens, with each token costing \$1,000. Investors then receive dividends from the rent collected on the property, proportionate to the number of token shares they own.

Real Estate Tokenization Example

Real estate tokenization enables exposure to individual real estate assets. Instead of investing in the entire real estate sector, investment portfolios can be customized down to a single building.

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