The security tokens industry is firing on all cylinders. As was to be expected, there is an increasing interest in tokenizing real estate. REINNO is the latest fintech company exploring this particular business model.
The Real Estate Security Token Model
As we learned during the interview with Security Token Group’s Herwig Konings, real estate may be an industry worth keeping an eye on. More specifically, tokenizing existing locations and attracting investors. REINNO is exploring this opportunity for lending and real estate tokenization. The fintech company has the option to provide several portfolios for investors to explore.
Looking at the website, there are currently 4 portfolios to explore. The other location is a Boca Recovery center. By tokenizing these locations, REINNO aims to secure capital to ensure investors can secure ownership. Its Boca Recovery Center, for example, has a goal is to raise a maximum of $7,000,000. Investors can benefit from the yearly target IRR of 9.6%.
The same concept applies to the other portfolios on the website. Whether it is mobile homes, residential homes, or even industrial locations, there are options to explore. Every location has its own target cap and IRR. Most of these campaigns last for over 100 days. Raising multiple millions in capital is never easy, even if existing real estate locations come into the picture.
Considering the novel nature of tokenized real estate, it will be interesting to see how many of these locations will get funded in full. Blockchain technology allows for novel investment opportunities. Raising awareness for these efforts, as well as attracting investors, remains a challenge.
An Industry With Massive Potential
Considering how the world’s population continues to increase, demand for real estate will keep rising. After all, everyone wants or needs a place to live. Anyone investing in real estate is, in theory, bound to do rather well for quite some time to come. In reality, things can always turn out differently.
Not having to build houses oneself makes for an appealing investment option. Being able to invest in locations from one’s own home through security tokens is a viable option. REINNO is tapping a largely unexplored market, but one that can note strong growth.
At the same time, there are many other potential use cases for security tokens too. Exploring what is possible through different portfolios in real estate is one option. It remains to be seen what other real-world assets will be tokenized on the blockchain. Anything and everything seems possible right now.
Before making any financial contributions, it is advised to conduct thorough research. There are always risks involved when it comes to investing, regardless of the vehicles used.