When it comes to commercial real estate, COVID-19 has changed everything. Whether we’re looking at asset ownership, rental, sale, and ways to dynamically pivot the vast amounts of unused space we’re seeing in just about every city on the planet, everybody’s scrambling for innovative short- and long-term solutions.
And that’s on top of all the market changes, including the growing use of technology. When it comes to real estate investment in particular, technology plays a major role in the form of tokenization, as participants learned in a recent 1-hour workshop run by SolidBlock CMO Yael Tamar.
The webinar hosted over 50 participants from all sectors of the real estate field. SolidBlock offered the free session as an intro to a 14-session course that’s starting up in May 2020 in collaboration with Cointelligence Academy.
Geared toward working real estate professionals, this content-packed offers a grand tour of the entire tokenization and proptech space, from the 3D’s of real estate technology – demographics, data, and disruption – to some of the current challenges and solutions for the real estate investment field. For anyone working in the space, it’s important not to get left behind, and this workshop went a long way to bringing everyone up to speed.
As Yael explained, tokenization means buying and selling real estate in fractions. Under the old model, real estate investment involved units – individual condominiums, apartments, entire buildings, houses, or some combination. Investments tend to be big and expensive, in the hundreds of thousands of dollars at least. But by fractionalizing the property, she told participants, investors can invest in smaller “chunks” of the property, perhaps beginning at $10,000 or $20,000.
What are the benefits? Plenty!
Tokenization lets investors create a more diversified portfolio, spreading out the risk and returns. For example, instead of investing $100,000 in a single property, it’s now possible, through tokenization, to create a portfolio of real estate assets, possibly all over the world. And for developers, tokenization means access to newer and more diverse funding sources.
Beyond the basics, Yael laid out the plan for the upcoming 14-session course for current real estate professionals. She also answered tons of questions from participants, both about tokenization and about the current market situation:
- How mature is the real estate token market compared to the conventional stock market?
- What exactly do you tokenize?
- Does SolidBlock offer a white label solution?
- How do you know it’s the right time for an STO in any given field, given the vacancy crisis?
- Is there a private placement memorandum (PPM) or white paper for potential investors?
- Will adding liquidity to real estate increase its volatility as an asset? (You can find the answer to that question here on our site!)
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