In this article I want to explain to you how we are going to make our real estate products available to investors thanks to tokenization.

As we have mentioned in other articles, tokenization is nothing more than the digitization of the value of a good and representing it in the form of a token. In this way, a token collects some of the properties of a stock in a company; in our case, it gives you economic law about the tokenized asset. But in addition, this token is easily storable and transferable, which allows for great operation with it (sell it in seconds to anyone worldwide without paperwork), and the transactions made with it are immutable and traceable as it is registered on a public blockchain.

What challenges do we face when it comes to tokenizing real estate?

First of all, what are we going to tokenize? The property itself, a company that owns the property, a debt?

At Reental we are going to tokenize a participatory loan associated with each property.

Through participatory lending, we managed to get an owner of the token (token holder), is a beneficiary of the economic profit generated by the operation of the property. In this way, the dividends distributed will be full for the token holders, and their amount will depend exclusively on their performance in managing the property, the value generated by its rental and its possible sale.

In short, for practical purposes, a token holder will obtain the profit generated by renting and/or selling the property in which they have invested from the comfort of their home.

Obtaining this passive income is at your fingertips, two clicks away from your PC or mobile phone.

Why don't we directly tokenize the property?

The most natural thing would be to directly tokenize a property, but today in Spain the Land Registry does not allow the possibility of registering addresses as owners on a blockchain, and that the change of owners is dynamic and can be carried out automatically and without bureaucracy. The land registry remains a centralized entity where property owners are forced to go through it.

Our alternative allows investors to obtain the benefit in a 100% legal way anyway, while the ecosystem and regulations evolve towards this end (which, on the other hand, we have no doubt will come due to the strong push of some property registrars in this direction).

Welcome to the Reental community!