Differences between crowdfunding and real estate tokenization

On many occasions it is normal for people to confuse between real estate tokenization Or the real estate crowdfunding, and it's logical, but today we hope to dispel all the doubts that may arise and you can make the perfect difference between a real estate crowdfunding company or a real estate tokenization. 

Let's do it!
Whether or not you are a regular on this blog, we are sure that you know the great advantages it has. investing in the real estate sector, especially if we consider it a long-term investment with monthly passive income to be able to live in peace. But this scenario poses a problem that a lot of people find themselves in, and that is the lack of capital.

Let's be honest, buying a property is not an investment that requires little capital or time, since they are investments that force the investor to be very aware. As is to be expected, not everyone who wants to invest in real estate has the capital or the time necessary for this investment to work out well.

It is because of this problem or need that different alternatives emerged, all of which are aimed at Zoom in on the real estate investment to investors with little time or with little capital. Exactly, we refer to options such as real estate tokenization, real estate crowdfunding or SOCIMIS. We are going to review these exciting options to understand the differences between each of them so that you can correctly choose which one best suits you.

Real estate tokenization

La real estate tokenization it is a great option for investing in the real estate sector, in the case of Reental You can invest from 100€ in tokenized properties with an 11% return estimated, without any type of management, receiving monthly returns and with the ability to divest at any time without the need for a buyer.

In addition to this, everything is done digitally, which means that investors don't have no geographical or temporal barriers to invest in real estate, something that was previously unthinkable.

And how is all this possible? You might be wondering. La real estate tokenization It goes one step beyond a real estate crowdfunding By introducing technology into this already known model blockchain. Using blockchain technology allows investors to have greater security and traceability of the capital they have invested, as well as the possibility of divest at any time without the need for a buyer.

When the Property is tokenized (investment capital is reached) it starts to produce returns thanks to rent, and then when it is sold, it also produces profits for investors.

Without a doubt, this is a great choice, since you can invest in the tokenized properties with little capital and you don't need to borrow any of your time. If, like our more than 800 investors, you are also curious to enter the fascinating world of real estate tokenization, we recommend that you register at Reental.

Real estate crowdfunding

The case of crowdfunding It is a model very similar to the real estate tokenization, since you can also choose the properties in which you are going to invest, you can do it from a small amount of capital, without management on your part, etc. The main difference between this model and the real estate tokenization The thing is that, being a more traditional model, it does not have blockchain technology. In the next post we explain the advantages and disadvantages of crowdfounding

Not using this technology means NOT being able to abandon the project if at any time you need to recover your capital. In addition to this, you can't have so much control over your capital either, since the company manages it, and it is the company that decides the transparency it wants to show to investors. In the case of the real estate tokenization The blockchain is public and transparent, so you can have more control and security.

SOCIMIS

The SOCIMIS are the adaptation in Spain to the model already known as a “real estate investment vehicle” or REIT by its acronym in English, a model which is widely exploited in countries such as the United States or the United Kingdom. Its model is the acquisition and remodeling of real estate assets for subsequent exploitation in the form of rent or sale.

The main advantage of this broker is that when it is listed on the stock exchange, anyone can invest or divest in it, as if they were shares of a company.

Some of the requirements that a company of this type must meet you will find:

- Have a minimum capital of five million euros.

- Dividend 80% of rental income and 50% of capital gains realized through the transfer of assets

- Trade on a regulated stock market

Conclusion

As you have seen, these three options offer great advantages in order to investing in the real estate sector, there are some differences between them, so we recommend that you choose which of them best suits your needs and objectives.

From Reental, how could it be otherwise, we recommend the investment in tokenized properties in the company of real estate tokenization reference in Spain.

Our support team will be happy to welcome you to Reental and help you with any process.

In order not to miss any of the opportunities we present, we recommend that you join our group of Discord or Telegram To get to know others Reentels and the whole team. Of course we invite you to take a look at our articles on the blog to continue informing you.

Welcome to the new way of doing finance, welcome to Reental.