Thanks to a blockchain startup that has partnered with a broker/dealer company, it’s now possible for one to own a piece of the Manhattan real estate property for a dollar. The partnership will see the two companies create a tokenized real estate investment opportunity for all.
The companies will offer tokens that represent shares in a multimillion-dollar block of condos that are located in Manhattan, New York. Buyers will have an opportunity to invest any amount they feel they can afford.
Blockchain To Revolutionize How People Invest in Real Estate
According to Michael Oved, the co-founder of blockchain company Fluidity, smart contracts, and the blockchain technology will revolutionize the concept of investing in real estate.
In a promotional video published by Bloomberg, Oved addressed some of the issues that hamper the current process of buying property as an investment. He goes on to explain how the blockchain will address these issues.
“When we started to look at the real estate industry, it’s probably one of the most inefficient industries that exist currently. A lot of middlemen, a lot of lawyers, a lot of bankers.”
Now the partnership will allow investors to buy shares/tokens in a $36.5 million block of condors. So instead of selling each of the twelve luxury apartments individually, they plan to avail tokenized shares to those that wish to add a piece of the Manhattan real estate to their portfolio.
The tokens will be issued on the blockchain. It’s a move that will allow greater transparency, efficiency, and security than it was previously possible.
According to Ryan Serhant, one of the team’s real estate agents, by tokenizing, the team hopes to start repaying the loan that allowed for the construction of the apartments.
“We have a bank deadline on us where we have to sell a certain amount of units or repay the entire loan by a certain date. If construction has been delayed, if the market turns, if competition pops up, and we’re not gonna be able to hit that deadline, what do you do? So, by tokenizing the debt, it gives everyone breathing room to sell at a normal pace with the market instead of against it.”
“Literally 25-30 million people can own a piece of this at a dollar a pop. When has that ever been possible?”