GreatOne Logo

The Role of Technology in Modern Real Estate Investing

Please or Sign Up to continue reading ...

Real estate investing has always been a way to invest for the future. Traditional real estate investing methods can be time-consuming, complicated, and stressful. Technology and the rise of digital assets are changing the face of real estate investing. Blockchain makes it possible to invest in fractional shares of properties. The fundamentals of tokenized real estate investments remain the same as traditional methods.

This new system makes it easier for those who want to invest but lack the capital to buy a whole property outright. Investors can take advantage of opportunities in real estate anywhere in the world by purchasing tokens. Tokenization allows for potential liquidity that has not been available in traditional real estate investments.

All about Investment Portfolio Manager

Technology and the Rise of Digital Assets

Technology plays a major role in modern real estate investing as the world becomes increasingly digital. The rise of digital assets, blockchain technology and tokenized real estate are just some ways this industry is changing.

In recent years, cryptocurrencies have become an investment option for those who want to diversify their portfolio or hedge against inflation and economic downturns. While cryptocurrencies are not securities (classified as commodities), companies are starting to issue tokens—or digital representations of real assets like property— or digital assets. This trend has made it possible for investors to buy fractional ownership in properties without having access to large sums of capital or making an all-out purchase on one property at a time.

Fundamentals of Tokenized Real Estate

The fundamentals of tokenized real estate investments remain the same as traditional methods. Investors need to do their research, understand the risks involved, and be able to afford any investment they make. Doing your homework before investing in tokenized real estate is just as important as it is with traditional methods.

Investor interest has grown since the advent of blockchain in real estate because tokenized investments are more accessible than traditional real estate investing methods. With tokenization, individuals can invest in fractional shares in properties worldwide without needing an entire property or significant capital reserves like those required for direct ownership of a single hotel or office building.

How Technology is Driving Real Estate Investment?

  1. AI & Big Data
    Investors should remember that while AI streamlines the real estate investment process, technology can only partially replace the human touch. Technology can be utilized to sort through data and highlight ones fitting certain criteria before an investor digs into research and analysis.

  2. Real Estate Crowdfunding or REITs
    A layman’s term for real estate crowdfunding is real estate investment trusts (REITs). It has facilitated and democratized pulling the financial resources of multiple to own shared properties. As a result, it eliminates the prerequisites for investors to be qualified and reduces the minimum required investment.

  3. Tokenized Real Estate
    Real estate tokenization is representing physical assets into digital tokens or shares. The number of tokens a person has determines what percentage of the asset they own. These tokens, whether they represent shares of a company that owns real estate or a specific piece of real estate, represent direct ownership of an asset. As a result, tokenization substitutes digital token transactions for paper documentation in the real estate industry.

Final Thoughts

Real estate investments can be a great way to secure a future for yourself and your family. Traditional real estate investing methods can be time-consuming and complicated. Technology and the rise of digital assets are changing the face of modern real estate investing. Blockchain technology makes it possible to invest in digital shares of the property.

To manage your portfolio, GreatOne is a comprehensive portfolio evaluation (CPE) platform that acts as a single dashboard for all your investments. Three major products under the GreatOne umbrella include HOMZ, LandX, and GreatX, enabling investors to commit their capital to tokenized real estate. Whether investing in residential real estate or the hospitality industry, GreatOne becomes a go-to option for all modern investors.

Disclaimer

This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatOne disclaims any obligation to update or revise any statements or views expressed herein.

In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatOne and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatOne and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Kong Posh Bhat

About the Author

KP is a seasoned tech veteran with 30+ years experience in building various tech platforms. He is director of technology for Greatone.

Leave a Reply

Digital Asset Donation Logo

Coming Soon

We are currently working on creating something amazing for you. The DAD Foundation website will be up soon. Stay Tuned!