Real Estate Investment Problems & Solutions
The Real Estate Problems
By creating a real estate blockchain platform, you will address the $280 Trillion Real Estate sector and $5 Trillion Private Fund industry, fraught with many problems!
In real estate investments the private equity model is lucrative, but lacks the ability for active investors to trade their real estate interests on a daily basis at a reasonable net asset value. The real estate industry is highly capital-intensive and less liquid than other markets.
Real estate investor’s world is comprised of large professional players, such as: high net worth individuals, banks, insurance companies and pension funds. Entry barriers prevent small investors from harvesting returns at the same level as the qualified players. Common investors are limited to investing only in collective investment formats such as real estate mutual funds where management fees are high and there is no way to choose and control opportunities.
One solution could be development of a Real Estate Security platform focused on the practical application of Smart Contract and next-generation Blockchain technology, that offers Fractional Property Ownership (FPO) of different types of properties: office buildings, apartment complexes, student houses, commercial buildings, etc.
Harnessing the immutability of Blockchain and the convenience of Artificial Intelligence, such platform can provide the state-of-art Security Token Offering Platform that consistently generates stable annual ROI.
With the implementation of such platform one can conveniently and efficiently resolve the issue of inherent illiquidity and fraught in a multi-trillion dollar investment market. Through the digitalization of an actual real estate assets (sustainable apartments, residential areas, lands, etc.) an issuer aims to launch new markets and reduce operational costs, making real estate investment transparent, efficient, and open to masses.
The investment platform should be user-friendly, secure and understandable, focusing on transparency and legal property ownership, where safe returns are achieved from participation in real estate development projects.
In the process of developing sustainable real estate projects and in building investment portfolios, the issuer must seek and offer investors an investment tool that helps them to maintain a high level of security and diversification.
More resources on the topic
The Real Estate and Blockchain subject is new and endless now! If there will be an interest in learning about this particular subject, I am going to post here more topics, such as:
- Tokenomics (Token Economics)
- Utility or Security Token
- The Real Estate Blockchain Ecosystem
- The Security Token Investment Model
- The Security of Security Tokens
- The Real Estate Tokenization
- Introduction to the European Real Estate Market
- Crowdfunding vs. Traditional Real Estate Investment Overview
- Risk of Investing in Real Estate Markets
- User Experience (UX) in Real Estate on Blockchain Platforms
- The Regulations of Security Tokens
- Friendly STO Jurisdictions
- Corporate Structure for an STO Business, etc.