Investors Around The Globe Gain Access to Cross-Border US Real Estate Through Tokenization
Real estate has always been a difficult investment to gain access to domestically, it’s even more difficult when you want to invest in cross-border real estate transactions. The red tape and complexity of this process is prohibitive and blocks many investors from ever entering the $32 trillion-dollar US real estate market.
Investors across the globe want to invest in US real estate because of the stability of the US economy combined with a predictable government. US real estate is the gold standard of real estate investing and is the most sought over land across the globe. With the US GDP over 17 trillion it’s no wonder that everyone wants to tap into the US real estate market– the problem is that most haven’t had the access.
Residential and Commercial Real estate investing abroad has always had great appeal to investors but many haven’t been able to enjoy the returns real estate provides due to not being able to find the right investment property, high cost of purchase, difficult transferring funds across border, Immigration laws and visa issues, financing, prohibitive U.S tax laws, exchange rates, and loss of home country benefits to name a few.
The cost of cross-border transactions
A cross-border real estate transaction is going to cost you a lot of money in fee’s. A few that are worth mentioning are exchange fees, transfer fees, broker fees, attorney fees, taxes, and investment fees. It can be an expensive process that cuts into your bottom line, making it less appealing to invest abroad. Tokenization solves this problem, it streamlines the process above and doesn’t require expensive third-party intermediaries to increase your costs. Less fees means that you get to bring in more income and improve your overall return.
Tokenization isn’t a new concept, it’s been going on for thousands of years in cultures all over the world. Throughout history we have seen Beads, precious metals, Cowrie Shells, and now blockchain technology as a token of exchange. Tokens create accessibility and simplicity when trading value for value. It’s a mutually trusted medium of exchange that can be traded easily among its traders
The significance of digital tokenization can’t be overstated; it’s simply transformational because of its unique ability to divide assets into bite size pieces. The ability to take an asset and divide it up into smaller individual parts that can be traded in the blockchain creates efficiency, greater utilization, and income streams to people that were denied access in the past. The second significant breakthrough that makes blockchain tokens unique as a medium of exchange is the security and ERC-20 compliance embedded in each token.
The Returns Token
Returns Tokens are a new ERC-20 Ethereum Smart-Contracts governed security token protocol for real estate. Because the Ethereum market cap is over $50 billion there are plenty of buyers and sellers trading ERC-20 compliant tokens. This ecosystem has its own rules and standards, which everyone must abide by. Having a ERC-20 ETH security token is standard in this ecosystem and can seamlessly be traded among crypto traders.
The Returns Token democratizes real estate investing for people around the globe. It’s the key that unlocks passive income and capital appreciation to millions of people that are building their nests eggs and planning for the future.
Investors around the globe that have ETH cryptocurrency will be able to invest as little as 2 ETH into fractionalized US real estate through the RealtyReturns online marketplace, and bypass the working with banks, attorneys, brokers, title insurance companies, and escrow. RealtyReturns has a rich background investing in residential, multi-family, and commercial cash-flowing properties around the US, and collectively have well over 100 years of real estate experience.
VP, Investor Relations
Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.