After soooo many people bragging about how much they made on BitCoin…
And after sooooo many other people wishing they had gotten onboard…
The whole thing seems to be crashing down.
Color me NOT surprised.
After all, what was it backed by?
Thin air?
Yes, we can make the same argument for the US Dollar. It ain’t backed by anything real either.
And that’s the problem.
Thin air doesn’t offer much security.
So what does?
Property.
Land.
Real Estate.
But the biggest and best properties are usually untouchable for most people from an investment perspective, as they are just too pricey.
Enter Tokenization.
It merges the best parts of a “coin” with actual physical real estate assets.
So now your coins are actually worth something, as they represent a portion of an actual property.
How?
They do this by creating a Special Purpose Vehicle (SPV) that purchases a minority share of a property, such as a hotel or apartment complex.
That SPV is then “tokenized” and investors can purchase the tokens, which are like shares.
A token owner is very similar to a limited partner, in that you can’t lose more than you invest. As the property generates cash from rents, you get your share through the app. In the future, you’ll be able to trade those tokens, so you’ll also have liquidity.
The token transactions are recorded on the blockchain, but unlike a typical volatile cryptocurrency, their value is pegged to the value of the property they represent.
There’s actually actual value there.
Curious?
OwnProp is a new company that’s developed a way for accredited real estate investors who may not have enough cash to invest in a big commercial deal to benefit from the typical high IRR those properties yield.
I encourage you to download their app and check it out. Right now they’re taking no fees whatsoever and the app is free. Investors can see a PPM and financials before they buy their tokens, so everything is disclosed and there are no surprises. (You’ll have to upload some documents to verify that you can invest (SEC law), but I’m told they’re verifying people’s eligibility within a few hours.)
They were behind the first Austin Texas property to ever be tokenized, and they sold out to dozens of investors in a few weeks.
Now they have two more properties listed and one of them is a pretty famous historic hotel next to the University of Texas campus.
People always tell me they want to know what the future looks like. This is a great way to find out. Signup for their webinar on Zoom this Thursday and it’s a great chance to learn about tokenization of real estate.
Tom Zeeb
Traction Real Estate Mentors
