Tokenized real estate – The Island Project
Posted On January 28, 2023
What is tokenized real estate?
Tokenized real estate is the Number 1 emerging asset class in the World based on blockchain technology. The Island Project is at the forefront of this technology and the first to tokenize beach, oceanfront and vacation zoned property. Tokenize simply means that you are providing liquidity to an asset through a pool of investors that otherwise couldn’t own the asset individually. This provides a new market for various asset classes like real estate with benefits and features that have never existed before. For example, imagine buying an entire asset class of real estate with the click of a button? Or, let’s say you wanted to target a cap rate of 8-9% vacation rentals in a specific neighborhood? This can all be accomplished through tokenization.
Elimination of Third-Party intermediaries
Tokenized assets like real estate also allow the removal of excessive fees, third-party companies and other intermediaries no longer needed in a transaction. For example, Airbnb as a platform has largely eliminated traditional listing agents and commissions with a single platform resource. This is an incredible invention and has helped create efficiencies in otherwise dormant properties not generating cashflow. What if you could offer fractional ownership of residential or commercial real estate with the click of a button on a single platform to a larger pool of investors? Let’s say you wanted to sell your home, instead of listing it with a traditional broker or agent, you could simply tokenize your property and sell at fractions to different owners for investment at a higher price.
We have already seen rapid advancements in this area with companies like Pacaso homes offering second home ownership in vacation areas with 1/5 or 1/8 ownership. This also increases property values while allowing investors to enjoy higher end living and lifestyle enhancement with property management services.
Although, we will see more commodity like services that offer fractional ownership of property and homes, it doesn’t necessarily mean it is tokenized. So there is a difference between tokenization and fractional ownership but the areas do blur at times.
Tokenized real estate for example, can be highly specialized and unique to serve a specific need such as THE ISLAND PROJECT. Our community for example, is a targeted niche with a freedom ethos specializing in the prized luxury property and exclusive Beach, Oceanfront and Vacation zoned property markets. The community itself is also tokenized to serve its Membership and provide liquidity such as blockchain rewards.
Fractional vs. Tokenized Real Estate
Fractional real estate is a real estate asset that offers fractions of a whole property such as 1/3 or 1/8 ownership. Tokenized real estate is real estate that trades on a liquidity platform such as a blockchain or public exchange to buy or sell ownership rights. This could also include lending opportunities, liquidity pools and staking of assets. The opportunities are endless limited only to the imagination of the technology and creator. There is also a high-level of transparency and record keeping never before possible using blockchain technology. Let’s say you would like to set up a smart contract to dispose of property to an heir at your death in fractions to all your remaining family. This is easily programmable on a blockchain network, is immutable and transparent for all parties.
Can a Real Estate asset be Fractional and Tokenized?
Yes, The Island Project provides fractional ownership of property to investors with limited non-fungible parcels (NFPs) while tokenizing the project on a public blockchain. We are not currently trading as a public offering or token but will be in the future based on our Blockchain Roadmap buildout and proof of concept Maui Flagship 1. We’ve built the best of both world’s where you own a premier real estate portfolio with no debt that is also being tokenized on our proprietary blockchain Isle Chain.
Who invented tokenized real estate and what are the leading technologies?
Tokenized real estate is an open source technology that is being developed by leading technologists and blockchain experts worldwide. At the forefront of this development, THE ISLAND PROJECT, the first to tokenize real estate assets in the private market specializing in Beach, Oceanfront, Homes, Condos and Land worldwide. Christopher Greene is the Founder of The Island Project and his management team the leading innovator in the blockchain space and tokenized real estate asset marketplace. Our team has built the first tokenized real estate Project in the World specializing in the most exclusive Beach and Oceanfront real estate.
Could you tokenize businesses?
Yes, you can tokenize businesses, people, cashflows, brands, trademarks and anything else you can think of. The entire stock market will be tokenized in the future. Imagine buying stock on the NYSE tokenized? Or investing in your favorite influencer, company or video game fractionally? Pretty cool, right?
Conclusion
Tokenization, but more importantly the tokenization of real estate assets, will be in our opinion the Number 1 asset class in the future and most important use case for blockchain technology since the invention of the Internet, Social Media and ecommerce. Those that get in first will be at the forefront of a Digital revolution not seen before in history. There is also tremendous opportunity to make money and potentially 1000X your investment.
Many technologists are now entering the space such as Jeff Bezos and his recent investment in Arrived Homes.
For more information, Contact our World-Class Team here.