How Tokenized Real Estate Assets Can Attract Luxury Clientele
We can all agree that every business’ main goal is to be profitable and sustainable through time. In this sense, tokenized real estate assets are no different, but as a broker there are various things to take into account in order to bring big wealthy clients to your portfolio.
It is usually said that fractional properties are designed for small investors but that’s partially true. In reality, the tokenized real estate market is crowded by wealthy investors that fully understand the benefits this industry has to offer.
Why do top clients invest in fundraising projects? Simply put, because of diversification. Despite the amount of money every player wants or can invest, all of them expect to lower risk to the minimum possible.
Real estate is one of the most stable assets in the world and the benefits of blockchain technology and tokenization made it even more attractive as an investment. Through this article, we will explore some of the benefits that tokenization can grant to your top clients and how to keep them coming.
Tokenization brings your A game
In a world where short tutorials and YouTube guides are kings of content, it is a must that you can deliver to your clients recommendations to demonstrate that you are a trustworthy broker, which will ultimately also add extra value to your brand.
In that sense, tokenization can help you provide better, more targeted services and build a robust real estate portfolio. At least if you know how to use it in your favor.
But before diving into it, let’s go over the basics. Put simply, tokenization is a digital process where an asset, in this case, a real estate property, is fragmented into smaller virtual tokens that would represent ownership of said asset.
Now that we got that out of the way, how can tokenization actually enhance your business as a real estate broker? Funny you should ask…
Benefits of tokenized real estate assets
Whether they are interested in residential real estate or the luxury market, your clients will surely be able to leverage the many perks that come with tokenized real estate assets. Let’s see how that goes:
- A limitless real estate portfolio: Investing in real estate tokens gives investors access to a myriad of projects from all around the world.
- Tokenized crowdfunding: With this model, investors can fundraise high-class assets and, at the same time, receive constant updates directly from the developers and management team.
- Impressive diversification: Instead of putting a big amount of money in a single property or deal, investors can split their investments between multiple projects.
- Unprecedented transparency: Blockchain works as a decentralized technology and the data stored in a token can be traced to guarantee transparency on every step along the way. This system will help mitigate possible crises in the future.
- Costs at its lowest: Thanks to the decentralized network and the transparency powered by the blockchain, costs are reduced to the minimum; mostly in terms of traditional real estate costs, such as inspections, loan fees, taxes, and more
- Instantaneous transactions: Once again, thanks to the blockchain technology, transactions are immediate. So, whether it is receiving their investors’ profit or investing in a digital real estate asset, money will be credited in a matter of seconds.
- Liquidity: No matter the size of a property or deal, the biggest issue with the real estate market is liquidity. Cryptocurrencies, like real estate tokens, can be traded on a daily basis. Each owner won’t need to seek a buyer for an entire property but for the fraction they own.
- Full automation: Due to smart contracts, all transactions are automated. Taking the weight off of every investor's shoulders as all the accounting entries from every token exchange are immutable and recorded automatically on the blockchain.
Enhance your Real Estate Portfolio for your Top Clients
As we mentioned before, crowdfunding is where property tokenization excels. A well-designed platform has the potential to become a solid and global marketplace for real estate investments.
Even more so, these platforms can show you estimated returns, development status, and every aspect regarding the deal that investors would ask beforehand. In the same way, every command of the smart contract will be included for each person to check it.
Where does your role come into this? A lot of clients like the DIY method, but they do not always keep on track with the latest news on the real estate market, which is where you can make the difference.
It is one thing to grant them access to a crowdfunding platform, and it is a whole better, more solid idea to curate and help them select specific projects for them according to their financial needs and expectations.
The Bottom Line
The Bottom Line
The real estate market is changing for good, and it’s carrying new challenges with it. Tokenization lets smaller clients get into the property market and offers new investing alternatives for high-class investors.
Specifically, providing your bigger clients with attractive high-end projects that don’t entail much risk is one of the best value propositions you can aspire to offer as a real estate broker.
Fortunately, with a tokenized real estate assets platform you can simplify your clients’ experience, help them diversify their portfolios, and ultimately become the go-to real estate tokenization expert.
Making a difference is up to you.