Tokenization is the process of turning an asset into a digital representation that can be traded on the blockchain. The tokenization of real estate property can potentially revolutionize the real estate industry.
Companies used to be privately owned only before the stock market. The stock market idea democratized ownership through financial markets. The title companies of the future could become like investment banks and realtors could become like wealth managers as people would need more advice with more options to invest in real estate.
Different capital structures (types of ownership) could provide different benefits, such as being able to reserve certain weekends at a discount. This innovation might also potentially significantly increase the value of the property in the most popular cities in America.
Tokenizing real estate also solves the problem of international investors wanting US dollar based assets with a decent return. Money flows through the global financial system most through bank lending. When banks slow down lending (like they have since the 2008 crash), this creates a huge dollar shortage because non-US citizens don’t earn dollars, but still need dollars to trade on the global market.
0:01:02 Conversation on the Tokenization of Real Estate Property
0:07:55 The Benefits of Tokenization of Real Estate
Powered by Robert Lewis, Jr. at Ink Realty and Stone Hill Wealth Management
Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
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