Tokenizz Equity Capital

MIT: 93% of real estate is beyond the reach of retail investors.

Better Homes and Gardens: 89% of US investors interested in real estate but only 3% has invested.

Tokenizz has a solution. The current market condition has spotlighted the need for Liquidity and alternative financing structures. Commercial Real Estate assets are easy to financed, Improved or reposition. For stakeholder of CRE to Monetize asset to r restructuring or improvement or reposition, access to capital and financing is very difficult and time consuming.

We give investors and equity stakeholders the ability to tokenizz” or turn their equity capital into a fractionalized, liquid, tradable, leverageable security.

About

Realestate STO

Security token offering, known as STO can allow the stakeholders to retain control and partial ownership while providing the ability to convert some or all of their  equity into a liquid tradable token offering.

By converting this illiquid equity into a tradeable vehicle, we are increasing value of the asset through the creation of the liquidity premium, while stakeholders are protected by tangible property and able to access the cash to put to work in more investments and improvement.

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When you tokenizz your property, stakeholders benefit from enhanced liquidity and fast, secure, low-cost transactions, so they can rest easy knowing their investments are accessible and tradable with the push of a button.

By converting this illiquid equity into a tradeable vehicle, we are increasing value of the asset through the creation of the liquidity premium, while stakeholders are protected by tangible property and able to access the cash to put to work in more investments and improvement.

Security Tokens

  • Security Tokens are digital financial securities, backed by the tangible, Commercial Real Estate. 
  • Security Tokens are fully compliant with KYC / AML requirements, and SEC regulations, utilizing Block Chain Transparency.
  • Security Tokens can be traded similarly as any REIT stock is currently.
  • World Economic Forum: 10% of global GDP on blockchain by 2027

STO Process​

Tokenizz Process

We give investors and equity stakeholders the ability to turn their equity capital into a fractionalized, liquid, tradable,leverageable security.

The security, an STO or security token offering can allow the stakeholders to retain control and partial ownership while providing the ability to convert some or all of that equity into a liquid tradable token offering.

By converting this illiquid equity into a tradeable vehicle, we are increasing value of the asset through the creation of the liquidity premium While allowing stakeholders to access the cash to put to work in more investments.

01

Determine the specific property or properties to tokenize and consider jurisdiction, types of shareholders, and the relevant regulations

02

Determine the legal structure. Various options are available and the owner can choose to tokenizz the equity of a special purpose vehicle (SPV), a debenture, or another form of participation right such as revenue or profit

01

Choosing Blockchain protocol, Token configuration, KYC/AML questionnaire, SetupToken custody solution with a custody provider and choose the right block chain network for token creation

01

Creating a distribution plan and payment methods for potential investors to purchase the token. On your dashboard you can see the amount of funds that you have raised in real-time

Liquidity Through Tokenization Liquidity Premium​

The most significant benefit that tokenization can bring to real estate is improved levels of liquidity. This “illiquidity tax” has been estimated to be between 20%-30% of the value of the most illiquid assets such as Commercial Real Estate

While stock trading and public market digital infrastructure are largely developed, the private investment markets and other forms of asset trading have seen very little technological or regulatory advancement in the past century.

Liquidity Through Tokenization Liquidity Premium

Real estate is quite simply the largest asset class in the world. HSBC released a report back in July 2017.  In it, they calculated that the global RE market was worth $228 trillion. To give some context, the value of all the gold ever mined has been estimated to be around $7.5 trillion

Despite being the most affluent space in the world, the industry still runs like a rudimentary “pen and paper” business. However, it looks like some of the industry’s biggest pain points can be solved with blockchain integration.

Security Tokens Value

INCREASED LIQUIDITY

With only 1% of the world’s real estate assets being traded on national stock exchanges. The illiquid quality of real estate assets can partly be ascribed to a lack of public markets and partly to a difficulty of

ACCESS OF PUBLIC MARKETS​

Getting listed on public exchanges can be time-consuming and expensive. It can take more than 2 years of planning for real estate investment trusts (REITs) to get listed on public exchanges while costing 3% to 10% of the market value of the trust’s assets resulting from the labor-intensive and costly listing processes, a lot of real estate investment firms, funds, and trusts omit the public market therefore a great majority of real estate deals are carried out in private markets.

REDUCE DIFFICULTY OF TRANSACTING​

Privately settled real estate deals require the involvement of several parties and demand a lot of manually handled paperwork. Consequently, real estate transactions are usually expensive and cumbersome. KPMG states that real estate transactions can take anywhere from 6 months to 2 years, and that transaction fees usually range from 1% to 3% of the asset value. Tokenization of real estate assets provides a solution to the liquidity issues afflicting real estate markets by providing cost-effective secondary markets for matching buyers with sellers and settling real estate.

Lowered Barrier To Investment​

INCREASED LIQUIDITY

Today, non-accredited investors are largely prohibited from trading and investing in commercial real estate. In fact, 93% of all U.S.-registered commercial real estate is exclusively accessible to only accredited investors1. Due to excessive capital requirements, the great majority of people in the U.S. and the world are thus excluded from investing in real estate.

To bring CRE into Shared Economy, Tokenization could lower the barrier to investment and thus open the market to non-accredited investors. Tokenization of CRE assets could significantly reduce transaction and administration costs while enabling the fractionalization of real estate securities. 

Owing to these improvements, tokenization has the potential to lower capital requirements for real estate investment, which in turn could democratize real estate investment and consequently result in trillions of dollars entering the market2.

The Popularity Of Crowdfunding Platforms​

Through the syndication of investments, real estate crowdfunding lowers the barrier to investment. That, in turn, allows for a more democratic market where everyone – not just accredited and institutional investors – can freely participate in real estate investment. Owing to its democratic nature, real estate crowdfunding partly resembles tokenized real estate assets. Despite the crowdfunding market being in its infancy, 60,000 investors participated in real estate crowdfunding in 20203

In tandem with STOs, the popularity of real estate crowdfunding is expected to skyrocket in the next decade. In 2018, the global real estate crowdfunding market was valued at $13,207 million; it is expected to grow at a compound annual growth rate of 58.3% consequently being valued at $868,982 million in 20274.

Transactability

  • Digital tokens that exchange peer-to-peer with instant-settling provide a strong alternative to the slow exchange of real estate properties. Reducing the 30-day average exchange period, to the 12 second block time on Ethereum, is a revolutionary improvement in the sale mechanics of real estate. 
  • With ownership of the property represented by ownership of the token, the cost of exchange is reduced to the price of gas, that is, the internal pricing on the blockchain for executing the computation that effects a transaction.
  • A sound legal, blockchain-based structure is able to eliminate many documents that require signatures, notarization, submission and approval. Public-key cryptography is able to automate the signature process, and if the legal structure for providing ownership to the token is sound, then there are no further steps required for the exchange of the asset, enabling the transaction itself to represent the exchange of the asset.