Tokenized Real Estate

Real Estate · Lesson 7.1

Real estate is hard to divide and slow to sell. To tokenize a property, a sponsor usually places it in a legal entity, such as an LLC, another special purpose vehicle or a trust, which holds the title. Tokens then represent interests in that entity. In most structures the token is a claim on the entity that owns the building, not on the building itself.

Someone still has to hold title, manage the property, collect rent and handle the legal work that comes with owning real estate.

Wally’s note: can't fit a house in a wallet. we checked.

Tokenizing a property changes how you hold your stake. It does not change what the entity owns or who manages it.

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