Are you interested in real estate tokenization and blockchain, but not sure where to start?
In this video, we will be discussing the truth about this innovative new way of investing in real estate.
We’ll cover everything you need to know, including how it works, the potential risks and rewards, and where to find reliable information.
Whether you’re a seasoned investor or just starting out, this is a must-watch video for anyone interested in real estate tokenization.
Transcript:
Samuel Grossman 00:00
There’s this misconception that, once you tokenize real estate everything changes. It doesn’t change. It’s still the same cap stack, it’s same operating agreement and the same asset. What changes is the optionality of liquidity, just tokenizing an asset is it creating value? No, it’s not. The asset has value. But by creating different options in liquidity, then that investment can be more attractive or more valuable to an investor.
But just using an NFT, it’s putting a costume on something doesn’t make it more valuable. At the end of the day, the assets still the asset. The data is still the data and the value still the value. The difference is, with an NFT, the value is not a guess. The the value of that NFT, that token is backed up by data. That’s real data and real value, that’s the difference.
Chris Bounds 01:09
The back it up, or make it a little bit more-to simplify it for those who are completely new to this. You can have an NFT that say is just art and it’s not backed by anything other than just art. Like a Mona Lisa, if you will, whether it’s a board, a paper, or whatever. I’m not that familiar with those kinds of projects, or you’re gonna have an NFT a piece of artwork that is backed by data and that data says that, hey, that NFT belongs to this piece of real estate. Right?
Samuel Grossman 01:43
NFT, I mean, it’s a digital verification of ownership. You know, that’s what it is.
Chris Bounds 01:48
Like a plane ticket, we’re going on a plane ticket. I mean, you can print out your ticket or you can just show them. It’s not officially in NFT. But it almost works the same way. It’s a digital representation of the data that’s represented on the planes manifest.
Samuel Grossman 02:05
Yeah, so sure. Let’s just take a piece of real estate, for example. The equity stack, right. The equity in a piece of real estate or the investment in a fund. You own X percent of that fund or that piece of real estate by signing your subscription agreement, your operating agreement, and wiring your money. Okay, so now, Sam Grossman owns 4% of ABC LLC. That’s great.
It’s a piece of paper I had DocuSign, that’s wonderful too, what you’re doing is you’re replacing that interest with something a token. That token is in my wallet and now that token not only represents that 5% ownership interest in that. But in addition, the data, the information, the transparency, the trust is created because all of that goes with the token. That’s the NFT, we can keep calling it an NFT or we can just call the token because it is a token.